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ELCDismissedKitale ELC (case number not stated in judgment)· [2018] KEELC 564 (KLR)

Stanley Misigo Maunda v Yuya Farmers Co-operative Society Ltd [2018] KEELC 564 (KLR)

Environment and Land Court
28 November 2018
1,158 words in judgment
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The bottom line

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Kenya's Environment and Land Court, not the Co-operatives Tribunal, hears disputes where a society member claims they received less land than they paid for.

What this practically means

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Executive summary

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This is a ruling on a preliminary objection dated 23 April 2018 raised by the defendant, a co-operative society, arguing that the Environment and Land Court at Kitale lacked jurisdiction over the plaintiff's suit by virtue of Section 76 of the Co-operative Societies Act Cap 490, which the defendant contended channelled disputes between a society and its member to the Co-operatives Tribunal. The plaintiff's plaint, filed on 9 November 2017, sought an order directing the defendant to give him 0.9 of an acre or its current value, together with costs. He pleaded that in 1981 he purchased one share of Kshs. 4,000/= equivalent to 1.8 acres, but received only 0.9 acres. The defendant admitted the purchase of land for members but pleaded the land was encumbered and largely unavailable, offering only 0.36 hectares. The defendant relied on Owners of Motor Vessel Lillian S. v Caltex, Gatanga Coffee Growers v Gitau, Bernard Mugo, and Gerald Wambua Makau. The plaintiff relied on Article 162(2)(b), Section 150 of the Land Act and Section 13(2) of the Environment and Land Court Act, and on several ELC decisions including Dismas Namiti v Basale Farmers Co-operative Society. The court found the facts on all fours with Dismas Namiti, held the dispute concerned the size of land the plaintiff was entitled to rather than internal society management, discounted the pre-2010 Wambua Makau decision and distinguished Bernard Mugo, and dismissed the preliminary objection with costs.

Key legal issues

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01

Jurisdiction of the ELC versus the Co-operatives Tribunal under Section 76 of the Co-operative Societies Act

Holding

The preliminary objection fails; the dispute is a land dispute within the ELC's jurisdiction, not one confined to the society's internal business.

Reasoning

The court examined the pleadings and found the plaintiff's claim was for 0.9 of an acre allegedly short-delivered on his 1.8-acre share. It distinguished the defendant's authorities: the Gerald Wambua Makau decision pre-dated the 2010 Constitution, and Bernard Mugo concerned disciplinary action against a member. It followed its own earlier decision in Dismas Namiti, holding that the cases cited did not justify departure.

p. 2
02

Weight of precedents relied on by the defendant

Holding

Both key defence authorities were distinguished or discounted.

Reasoning

Gerald Wambua Makau was decided in 2003 before the Constitution of Kenya 2010 came into force and so has no force in the current dispensation. Bernard Mugo, though post-2010, dealt with disciplinary action against a member, which is not the case here, and was therefore irrelevant.

p. 2

Legal principles established

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  • Where the real dispute between a co-operative society and a member concerns entitlement to a parcel or size of land, the ELC has jurisdiction under Article 162(2)(b); Section 76 of the Co-operative Societies Act does not oust it.
  • Pre-2010 decisions on co-operative society disputes have no force in the current constitutional dispensation.

Court orders

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  1. 1.The preliminary objection dated 23/4/2018 is dismissed
  2. 2.Costs of the preliminary objection to the plaintiff

Authorities

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Legislation

  • Co-operative Societies Act Cap 490Section 76
  • Co-operative Societies Act Cap 490Section 81
  • Constitution of Kenya 2010Article 162(2)(b)
  • Constitution of Kenya 2010Article 162(3)
  • Land Act No. 6 of 2012Section 150
  • Environment and Land Court Act 2011Section 13(2)

Cases cited (8)

  • Owners of Motor Vessel Lillian S. -vs- Caltex Oil Kenya Ltd
    KLR Page 1
  • Gatanga Coffee Growers -vs- Gitau
    1970 EA 361
  • Bernard Mugo & Others -vs- Kagaari South Farmers Co-operative Society & 4 Others
    2015 eKLR
  • Gerald Wambua Makau -vs- Lukenya Ranching And Farming Co-Operative Society Ltd & Another
    2004 eKLR
  • Dismas Namiti -vs- Basale Farmers Co-operative Society and Another
    Kitale Land Case No. 185 of 2017
  • Lius Muithini Kitunyi -vs- Konza Ranching & Co-operative Society
    Machakos ELC No. 7 of 2003
  • Kennedy Kimani Ndarwa -vs- Melti & Swan Farmers Co-operative Society Ltd & Another
    Nyeri ELC No. 545 of 2014
  • Mohamed Siad -vs- County Council of Nandi & Another
    Eldoret ELC Pet. No. 2 of 2013
Jurisdiction invoked
Article 162(2)(b) of the Constitution, Section 150 of the Land Act 2012 and Section 13(2) of the Environment and Land Court Act 2011

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Stanley Misigo Maunda v Yuya Farmers Co-operative Society Ltd [2018] KEELC 564 (KLR)", Case Analysis (2018). Kitale ELC (case number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/564/eng@2018-11-28

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.