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ELCPartially AllowedNot stated in the judgment· [2019] KEELC 3486 (KLR)

Susan Cheburet Chelugui & another v Daniel Toroitich Arap Moi & 5 others [2019] KEELC 3486 (KLR)

Environment and Land Court of Kenya
8 May 2019
12,383 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~50 min to read original · ~4 min brief

The bottom line

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Kenya's land court ruled a retired President's title to 53 acres in Eldoret was illegally acquired and ordered him and the buyer to pay the original owner's family Kshs. 1.06 billion.

What this practically means

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Executive summary

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The petitioners, administrators of the estate of the late Noah Kipngeny Chelugui, petitioned the retired President Daniel Toroitich arap Moi, Rai Plywood (K) Ltd, the District Land Registrar, the Registrar of Titles and the National Land Commission, alleging that Eldoret Municipality/Block 15/239 (53 acres), which traced to land acquired by the deceased as part of L.R. No. 10492, was unprocedurally taken and registered in the former President's name on 21st September 1983 without sale, consent or compensation, then subdivided and transferred to Rai Plywood and Kobil Petroleum. They sought declarations of unconstitutionality, cancellation of titles with reversion of the land, or alternatively compensation and damages. The 1st and 2nd respondents denied any violation, asserting first registration under the Registered Land Act and an innocent purchase for value, and characterised the petition as a land claim camouflaged as a constitutional petition to defeat limitation. The State respondents pleaded they acted on orders from above. The court found no evidence of how the former President acquired the title, that State House interfered with the survey and subdivision, and that issuing titles directly to purchasers contrary to the Commissioner of Lands' directions was procedurally improper. It held the acquisition arbitrary and a nullity, not protected by Article 40(6), and found laches no bar. Rejecting cancellation of titles in favour of compensation because of the respondents' long possession and investment, the court assessed compensation at Kshs. 1,060,000,000 between the rival valuations, ordered the 1st and 2nd respondents to pay the estate, refused mesne profits, and awarded costs to the petitioners.

Key legal issues

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01

Legality of the 1st respondent's registration as proprietor of the suit land

Holding

The registration of the former President was unprocedural and unexplained; he was allocated land meant for Noah Kimngeny Chelugui without purchase, allocation or application, and no title so acquired deserves constitutional protection

Reasoning

The court traced the land from L.R. No. 10492 through the Noah Kimngeny Chelugui share. The Commissioner of Lands' letters required the head title to be surrendered and new leases issued first in the names of the original owners before transfer to purchasers. Instead, titles and leases were issued directly to purchasers. The former President produced only a lease and white card with no evidence of purchase, and State House interfered with the survey process, leading to unprocedural subdivision.

p. 12
02

Whether State action on 'orders from above' can justify the deprivation

Holding

The plea that the land officials acted on orders from above was found to be illegality, impunity and procedural impropriety which the court cannot protect

Reasoning

State counsel Mr. Ngumbi submitted that the 3rd, 4th and 5th respondents acted on orders from the 1st respondent who was then President. The court held that such a statement borders on illegality and impunity and that the court cannot protect property not procedurally acquired. This finding grounded the violation of Article 40 and the equivalent of section 75 of the former Constitution.

p. 12
03

Whether the 2nd respondent is an innocent purchaser for value

Holding

The claim of innocent purchase failed because no sale agreement or evidence of payment of consideration was produced

Reasoning

The 2nd respondent asserted it bought the parcels for valuable consideration without notice of any defect and conducted searches. However, the court noted it did not see any agreement of sale or evidence of payment of consideration, so the basis of the innocent purchaser claim was unestablished. Since the root title of the 1st respondent was itself tainted, no protection under Article 40(6) or section 26 of the Land Registration Act could attach.

p. 17
04

Appropriate remedy for the unconstitutional deprivation

Holding

Compensation at Kshs. 1,060,000,000, being the midpoint between the two valuation reports, rather than cancellation of titles

Reasoning

The court considered Article 23(3) remedies and the valuations of Afriland Valuers (Kshs. 1,710,000,000) and the County Land Valuer (Kshs. 820,000,000). Finding both valuers had not done a comparative valuation of adjacent plots and no sale agreements were availed, the court fixed compensation at Kshs. 1,060,000,000 as commensurate compensation for loss of the land through an unprocedural scheme, payable by the 1st and 2nd respondents.

p. 20

Legal principles established

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  • A certificate of title is defeasible where it has been acquired illegally, unprocedurally or through a corrupt scheme
  • The Environment and Land Court, being of equal status with the High Court, may grant the full range of constitutional remedies under Article 23(3)
  • An act that is void is in law a nullity and needs no court order to set it aside
  • A petition of this nature is not defeated by laches given the delay of approximately 30 years, the persons alleged to be behind the process and the absence of a clear limitation period for such petitions

Court orders

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  1. 1.A declaration that the petitioners' constitutional right to property over Eldoret Municipality/Block 15/239 (53 acres) deserves protection and that the acquisition by the 1st and 2nd respondents was arbitrary, unconstitutional, irregular, unprocedural, tainted, a nullity ab initio and not worthy of constitutional protection
  2. 2.The 1st and 2nd respondents ordered to pay the estate of the late Noah K. Chelugui prompt payment in full of just and current market value of the said properties being Kshs. 1,060,000,000 as compensation
  3. 3.Costs of the petition to the petitioners
Jurisdiction invoked
Articles 22, 23, 162(2)(b) of the Constitution of Kenya 2010 and Section 13 of the Environment and Land Court Act No. 19 of 2011

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, "Susan Cheburet Chelugui & another v Daniel Toroitich Arap Moi & 5 others [2019] KEELC 3486 (KLR)", Case Analysis (2019). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3486/eng@2019-05-08

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