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ELCPartially AllowedELC Appeal No. 4 of 2017· [2018] KEELC 4203 (KLR)

Cecilia Nyambura Murunga v John Ndung’u Maina [2018] KEELC 4203 (KLR)

Environment and Land Court
26 February 2018
4,074 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court cancelled a land sale for lacking Land Control Board consent, ordering only a refund of the purchase price with interest.

What this practically means

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Executive summary

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This was a first appeal to the Environment and Land Court at Nyahururu against the judgment of A.B. Mongare SRM in PMCC No. 118 of 2011 delivered on 10th January 2012, which had directed the Defendant (Appellant) to transfer either of two parcels of land to the Plaintiff (Respondent) with costs and interest. The Respondent had bought a plot through Michael Wachira Thiga, the Appellant's agent, paying Ksh. 80,000/= in three installments into her bank account, only to learn the land had been sold to third parties. The trial court decreed specific performance in his favour. On appeal, the court framed three issues: agency, contract, and the effect of the absence of Land Control Board consent. It found, first, that an agency relationship existed, based on the Appellant's own demand letter appointing Wachira Thiga as her agent and the authority to sell/subdivide. Secondly, a valid contract existed between the Appellant and the Respondent through the agent, evidenced by the agreements and deposit slips. Thirdly, since the suit land was agricultural land within a land control area and no Land Control Board consent was obtained, the transaction was null and void under Section 6 of the Land Control Act. Following David Sironga Ole Tukai v Francis Arap Muge, the court held that equity cannot soften the imperative provisions of the Act, distinguishing the Macharia Mwangi Maina unjust-enrichment line of authority. Specific performance could therefore not stand. The court allowed the appeal and set aside the trial judgment, but ordered the Appellant to refund the purchase price of Ksh. 80,000/= with interest at the bank rate from 2006, and directed that each party bear their own costs in both courts.

Key legal issues

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01

Existence of agency relationship

Holding

An agency relationship existed between the Appellant and Michael Wachira Thiga, evidenced by the demand letter of 15th January 2011 and the authority to sell/subdivide

Reasoning

The Appellant's own counsel's demand letter expressly stated that the client appointed Michael Wachira Thiga as agent for sale of the subdivided plots, and exhibit 1 was an authority to sell/subdivide. Applying the Bowstead and Reynolds definition of agency, the court was satisfied a principal-agent relationship existed notwithstanding the Appellant's denials.

p. 4
02

Existence of contract

Holding

A contract existed between the Appellant and the Respondent, made through the agent, supported by agreements and bank deposit slips into the Appellant's account

Reasoning

The Respondent produced the authority, three agreements and deposit slips showing installments of Ksh 50,000, Ksh 15,000 and Ksh 15,000 paid into the Appellant's Equity Bank account. Since the agent acted for the Appellant, the agreements bound her and she could not deny contracting.

p. 4
03

Effect of absence of Land Control Board consent

Holding

The transaction was a controlled transaction on agricultural land and was rendered null and void for want of consent; specific performance could not be granted

Reasoning

Although consent was a mandatory requirement under Section 6 of the Land Control Act and was never obtained, following David Sironga Ole Tukai v Francis Arap Muge the court held the Act's provisions are imperative and equity cannot soften them; hence the whole agreement became void and unenforceable.

p. 5

Legal principles established

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  • A principal is bound by a contract entered into by her authorized agent with a third party and cannot later deny the agency
  • Transactions on agricultural land within a land control area are void for all purposes absent Land Control Board consent, and equity cannot soften the imperative provisions of the Land Control Act
  • A first appellate court must revisit, analyze and evaluate the evidence afresh and reach its own conclusion while allowing for the trial court's advantage of observing witnesses

Court orders

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  1. 1.Appeal allowed and the judgment and decree of the trial Magistrate's Court delivered on 10th January 2012 set aside
  2. 2.The Appellant to refund to the Respondent the purchase price of Ksh. 80,000/= forthwith with interest at the bank rate from the year 2006 to date
  3. 3.Each party to meet their own costs in this Court and in the Court below

Authorities

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Legislation

  • Law of Contract ActSection 3
  • Law of Contract ActSection 23
  • Land Control Act, Cap 302 Laws of KenyaSection 6(1)
  • Land Control Act, Cap 302 Laws of KenyaSection 6(3)
  • Development and Use of Land (Planning) Regulations 1861

Cases cited (7)

  • Mapis Investment (K) Ltd vs. Kenya Railways Co-operation
    [2006] eKLR
  • Selle vs. Associated Motor Boat Company Ltd
    [1968] EA 123
  • Macharia Mwangi Maina & Others vs. Davidson Mwangi Kagiri
    C.A Civil Appeal No. 26 of 2011 as consolidated with Civil Appeal Nos. 26 and 27 of 2011 [2014] eKLR
  • Cecilia Nyambura Murunga vs. Stephen Kuhora Kingo'ri
    Nyahururu Environment and Land Court Appeal No. 6 of 2017
  • David Sironga Ole Tukai v Francis Arap Muge & 2 others
    [2014] eKLR
  • Leonard Njonjo Kariuki vs Njoroge Kariuki alias Benson Njonjo
    CA No. 26 of 1979
  • Karuri vs Gitura
    [1981] KLR 247
On appeal from
Principal Magistrate's Court at Nyahururu
PMCC No. 118 of 2011
Jurisdiction invoked
First appeal to the Environment and Land Court under its appellate jurisdiction against the judgment of the Senior Resident Magistrate

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Cecilia Nyambura Murunga v John Ndung’u Maina [2018] KEELC 4203 (KLR)", Case Analysis (2018). ELC Appeal No. 4 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/4203/eng@2018-02-26

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