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ELCAllowedNot stated in the judgment (commenced by plaint filed 19 January 2012)· [2016] KEELC 657 (KLR)
Peter K. Gitahi & another v Akuisi Farmers Co. Ltd & another [2016] KEELC 657 (KLR)
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·~2 min to read original · ~4 min briefThe bottom line
#A Kenyan court ordered a land buying company to fairly and transparently distribute land to its shareholders by balloting within six months.
What this practically means
#Executive summary
#This was an undefended suit commenced by plaint on 19 January 2012 before the Environment and Land Court at Nakuru. The plaintiffs were shareholders of the 1st defendant, Akuisi Farmers Company Limited, a land buying company whose director was the 2nd defendant. The company had purchased two farms, Solai L.R Nos. 8943 and 8944 (approximately 947 acres) and L.R No. 9949 (about 1526 acres), but had refused to hold a proper, fair and transparent balloting process to distribute the land to its original 3353 members. The plaintiffs sought an order compelling the balloting and allocation, a mandatory injunction restraining sale, disposal, alienation or interference with the parcels before balloting, costs, and any other relief. The defendants did not enter appearance and the suit proceeded undefended. The court found that the 1st defendant was a land buying company in which the plaintiffs held shares, and that the plaintiffs were not asking for too much - only that distribution be fair and transparent. It noted the matter had previously gone to the Land Disputes Tribunal, whose decision was quashed for want of jurisdiction in Nakuru HCCA No. 133 of 2007, where Maraga J (as he then was) stated obiter that the company should proceed with its balloting. The plaintiffs called one witness, Ngali Valai, a shareholder who testified the land had been subdivided and produced a subdivision agreement between the company and a surveyor, Mr. Muritu. The court allowed the suit, ordering the directors to hold a fair and transparent balloting exercise over L.R Nos. 8943, 8944 and 9949, commencing forthwith and completing within six months, with costs to the plaintiffs.
Key legal issues
#01
Whether to compel the land buying company to distribute land to members via fair balloting
Holding
The court granted the orders sought, finding the plaintiffs' claim reasonable and undefended
Reasoning
The court found the 1st defendant to be a land buying company in which the plaintiffs hold shares. It considered the prayers limited to requiring a fair and transparent distribution process, and saw no reason to deny them. It noted a prior Tribunal decision was quashed for want of jurisdiction, and that Maraga J had stated obiter that the company should proceed with balloting.
p. 2
Legal principles established
#- Shareholders of a land buying company are entitled to an order compelling a fair and transparent balloting process for distribution of company land
Court orders
#- 1.That the directors of Akuisi Farmers Company Limited proceed to hold a fair and transparent balloting exercise to distribute the land parcels L.R Nos. 8943, 8944 and 9949 to its members
- 2.That the balloting exercise commence forthwith and be completed within 6 months
- 3.The plaintiffs to have the costs of the suit
- Jurisdiction invoked
- Original civil suit by plaint (Environment and Land Court); no specific constitutional or statutory provision invoked in the judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Peter K. Gitahi & another v Akuisi Farmers Co. Ltd & another [2016] KEELC 657 (KLR)", Case Analysis (2016). Not stated in the judgment (commenced by plaint filed 19 January 2012). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2016/657/eng@2016-07-14
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.