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ELCPartially AllowedNot stated in the judgment· [2020] KEELC 3456 (KLR)

Rosemary Wanjiku Mungai v Annunciata Waithira Kibue [2020] KEELC 3456 (KLR)

Environment and Land Court
27 February 2020
3,510 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court voided an estate land sale lacking Land Control Board consent and confirmed the buyer could only recover her Kshs.270,000 deposit, not the land.

What this practically means

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Executive summary

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The plaintiff sued for specific performance of an agreement for sale dated 18th May 2004 over a 0.2 hectare portion of L.R No. 5989/17, bought for Kshs.2,700,000 from the defendant in her capacity as administratrix of the estate of James Aram Njau Kibue, deceased. The plaintiff paid a 10% deposit of Kshs.270,000/= to the defendant's advocates as stakeholders. In the alternative she sought damages and refund of the deposit. The defendant denied breach, contending the plaintiff failed to pay the further Kshs.730,000/= and the balance within the 180-day completion period, that no Land Control Board consent was obtained, and that the property had been distributed to beneficiaries and sold to a third party. The court framed six issues. It found the sale was a controlled transaction under the Land Control Act which became void under section 6(1) for want of LCB consent, and that the defendant lacked capacity under section 55 of the Law of Succession Act because her grant was unconfirmed at the date of the agreement, following Gitanga Mwaniki v Anunciata Waithira Kibue. A void contract could not be performed, so neither party was in breach, though obiter the plaintiff would have breached clause 3 had the agreement been valid. Specific performance and damages were refused; the property was already registered in a third party's name. The plaintiff was awarded refund of the Kshs.270,000/= deposit, payable by the defendant's advocates or recoverable from the defendant without interest. Each party was ordered to bear her own costs.

Key legal issues

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01

Applicability of the Land Control Act

Holding

The sale of the suit property was a controlled transaction which became void for want of LCB consent

Reasoning

The defendant produced a letter from the Commissioner of Lands dated 10th June 2010 confirming the property was agricultural land. The plaintiff led no evidence to rebut this. No consent was obtained within the prescribed six months, so under section 6(1) of the Land Control Act the transaction became void and unenforceable. The plaintiff also pleaded no equitable grounds that could justify upholding the agreement notwithstanding absence of consent.

p. 3
02

Capacity of an administratrix to sell estate land before confirmation of grant

Holding

The defendant had no capacity to dispose of the suit property on 18th May 2004 as the grant had not been confirmed

Reasoning

The property was registered in the name of the deceased. The defendant contracted as administratrix under a grant issued on 15th August 2001 but only confirmed on 16th November 2005, after the agreement. Section 55 of the Law of Succession Act was violated. Following Gitanga Mwaniki v Anunciata Waithira Kibue, the court held the agreement could not bind the other administrators and was unenforceable, including against the defendant personally since she contracted in a representative capacity.

p. 3
03

Breach of the agreement

Holding

Neither party was in breach because the agreement was void and incapable of performance

Reasoning

Since the agreement was void on grounds of want of capacity and want of LCB consent, performance by either party would have perpetuated an illegality. Obiter, had the agreement been valid, the plaintiff would have breached clause 3 by failing to pay the additional Kshs.730,000/=, which payment was not conditional on delivery of completion documents.

p. 3
04

Refund of deposit

Holding

The plaintiff was entitled to a refund of the Kshs.270,000/= deposit held by the defendant's advocates as stakeholders

Reasoning

The deposit was paid to the defendant's advocates as stakeholders and DW1 admitted it was still held by that firm. The defendant bears responsibility to instruct her advocates to release it. No interest was awarded against the defendant; interest only if the money was placed in an interest-earning account, and failing payment by the firm the plaintiff may recover from the defendant without interest.

p. 4

Legal principles established

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  • A controlled transaction over agricultural land for which Land Control Board consent is not obtained within the prescribed period becomes void under section 6(1) of the Land Control Act
  • An administrator whose grant is unconfirmed has no legal capacity to enter into an agreement for sale of land forming part of a deceased's estate, contrary to section 55 of the Law of Succession Act
  • A void contract cannot be performed or enforced, and neither party can be in breach of it

Court orders

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  1. 1.Judgment entered for the plaintiff against the defendant in the sum of Kshs.270,000/= plus accrued interest if the amount was deposited in an interest earning account by the defendant's advocates
  2. 2.The sum of Kshs.270,000/= plus interest, if any, to be paid to the plaintiff by the firm of Kamau Kuria & Kiraitu Advocates or its successor
  3. 3.In default of payment by the said firm, the plaintiff at liberty to recover the sum from the defendant, in which case no interest payable
  4. 4.Each party to bear her own costs of the suit

Authorities

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Legislation

  • Land Control ActSection 6(1), Chapter 302 Laws of Kenya
  • Law of Succession ActSection 55, Chapter 160 Laws of Kenya
  • Law Society Conditions of Sale1989 edition, incorporated by the agreement

Cases cited (1)

  • Gitanga Mwaniki & Another v Anunciata Waithira Kibue
    [2013] eKLR
Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over a dispute relating to land

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, "Rosemary Wanjiku Mungai v Annunciata Waithira Kibue [2020] KEELC 3456 (KLR)", Case Analysis (2020). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2020/3456/eng@2020-02-27

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