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ELCPartially AllowedELC Civil Case No. 473 of 2013· [2019] KEELC 3872 (KLR)

Samuel Bogonko Keengwe & another v Enock Nyandika Oroko [2019] KEELC 3872 (KLR)

Environment and Land Court
9 April 2019
2,450 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Environment and Land Court refused to enforce a Kenyan land sale because there was no written, signed agreement, ordering the title returned and a loan refunded.

What this practically means

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Executive summary

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The plaintiffs, the 1st of whom is an Advocate of the High Court, sued the defendant seeking a declaration that he was not entitled to rescind a sale agreement over LR No. Ruiru/Kiu Block 8/1234, a permanent injunction, specific performance of the alleged sale at Kshs.1,500,000, and leave to pay the balance of Kshs.170,000 into court. The defendant, who had earlier borrowed money from the 1st plaintiff and given the original title as security, denied the sale, claimed he signed transfer and Land Control Board consent forms under duress, lodged a caution, and counterclaimed for dismissal of the suit, unconditional release of his title deed, and taking of accounts on monies lent. The court framed seven issues. It found no written sale agreement complying with section 3(3) of the Law of Contract Act (Cap 23), noting it would have been easy for the 1st plaintiff, an advocate, to reduce any agreement to writing. Following Thrift Homes Limited v Kays Investment Limited, it held specific performance is discretionary and unavailable absent a valid enforceable contract. The competing monetary dealings did not crystallise into a sale; the title was held as security, no Land Control Board consent issued in time, and the basic ingredients of a contract of sale were missing. The plaintiffs' suit was dismissed for failure of proof on a balance of probabilities, while the defendant's counterclaim succeeded: the 1st plaintiff was ordered to release the title deed unconditionally, and the defendant to refund Kshs.500,000 with interest as agreed, alternatively accounts to be taken. Each party was ordered to bear their own costs.

Key legal issues

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01

Existence of a written and enforceable contract for the sale of land

Holding

No sale agreement was entered into by the parties; the exhibits (P1–P5) did not meet the formal requirements of section 3(3) of the Law of Contract Act

Reasoning

The 1st plaintiff is an Advocate in private practice, yet no written sale agreement was produced. Section 3(3) of the Law of Contract Act requires a contract for the disposition of an interest in land to be in writing, signed by all parties, incorporating all express terms in one document and attested by a witness. The letters, consent application and transfer forms produced did not satisfy these requirements, so the alleged sale could not be enforced.

p. 3
02

Entitlement to specific performance

Holding

Specific performance was refused because the contract, if any, was invalid or unenforceable for failure to comply with formal requirements

Reasoning

Relying on Thrift Homes Limited v Kays Investment Limited, the court held that specific performance is discretionary and founded on the existence of a valid enforceable contract; it will not be granted where the contract suffers from defects such as failure to comply with formal requirements. Having found no compliant written agreement, the court declined specific performance.

p. 3
03

Nature of the parties' dealings – loan versus sale

Holding

The competing monetary dealings between the parties did not crystallise into a sale agreement; the original title was held as security for monies advanced

Reasoning

The court found the parties had prior lending dealings and that the defendant's delivery of the original title was as security for monies advanced, not pursuant to a sale. The defendant admitted owing Kshs.500,000 which he was willing to refund, and the court found the basic ingredients of a contract of sale were missing.

p. 3
04

The counterclaim

Holding

The defendant succeeded on his counterclaim: the 1st plaintiff to release the title deed unconditionally and the defendant to refund Kshs.500,000 with interest as agreed, or alternatively accounts to be taken

Reasoning

Having found that the title was held as security for monies advanced and that the defendant admitted owing Kshs.500,000, the court entered judgment on the counterclaim ordering release of the title deed and refund of the sum, alternatively taking of accounts, while making no order as to costs.

p. 3

Legal principles established

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  • No suit may be brought upon a contract for the disposition of an interest in land unless the contract is in writing, signed by all parties, incorporates all expressly agreed terms in one document, and the signatures are attested by a witness present at signing
  • Specific performance is a discretionary equitable remedy granted only where a valid enforceable contract exists

Court orders

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  1. 1.The 1st plaintiff to unconditionally release the title deed of LR No. Ruiru/Kiu Block 8/1234 to the defendant forthwith
  2. 2.The defendant to refund to the 1st plaintiff Kshs.500,000 with interest as agreed between the parties; in the alternative accounts to be taken and settled as regards monies lent by the 1st plaintiff to the defendant
  3. 3.Each party to bear his/their own costs

Authorities

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Legislation

  • Law of Contract Act (Cap 23)Section 3(3)

Cases cited (6)

  • Bakshish Singh vs Panafric Hotel Ltd
    CA Civ Appeal No. 5 of 1984
  • Thomas Openda vs Petr Martin Ahn
    CA Civil Appeal No. 42 of 1981
  • Hosea Ayoyi Mombo vs Tongola Repher Mombo
    [2018] eKLR
  • Ngobit Estate Limited vs Violet Mabel Carnegie
    [1982] eKLR
  • Kakal Properties Development Limited vs Tafazz H. Maloo & Others
    [1993] eKLR
  • Thrift Homes Limited vs Kays Investment Limited
    [2015] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a dispute relating to land (Ruiru/Kiu Block 8/1234)

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, "Samuel Bogonko Keengwe & another v Enock Nyandika Oroko [2019] KEELC 3872 (KLR)", Case Analysis (2019). ELC Civil Case No. 473 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3872/eng@2019-04-09

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