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ELCDismissedE.L.C. Appeal No. 5 of 2020· [2021] KEELC 671 (KLR)

Wanjiru Njuguna v Joseph Wangondu & another [2021] KEELC 671 (KLR)

Environment and Land Court
25 October 2021
5,946 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed that even where family land is held in trust, an innocent buyer who paid for it keeps the title.

What this practically means

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Executive summary

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This was a first appeal against the judgment and decree of Hon. T.K. Kwambai (SRM) in Embu CM ELC No. 86 of 2018, dismissing the appellant's claim over land parcel No. KAGAARI/WERU/396. The appellant claimed the land, initially registered in the name of her step-son (2nd respondent) during adjudication because custom barred registering women and her sons were minors, was held in trust for her family; she alleged the 2nd respondent and the 1st respondent fraudulently colluded to transfer it to the 1st respondent. The lower court found no fraud and no trust. On appeal, the ELC at Embu, per A.K. Kaniaru (J), re-evaluated the evidence as a first appellate court in line with Selle v Associated Motor Boat Co. Applying the Isack M'Inanga Kiebia criteria, the court found a customary trust was established, since the 2nd respondent admitted holding the land in trust, corroborated by the appellant and her witness. However, the court held that fraud against the 1st respondent was not proved to the required heightened standard; his involvement appeared conjectural, the transaction revolving instead between the 2nd respondent and one Kimani Mukonyi. The court found the transaction was a sale, not a gift, given the Kshs. 90,000/- received and refundable. Section 80(2) of the Land Registration Act protected the 1st respondent, a purchaser in possession for value without knowledge of the unregistered trust, and Section 3(3) of the Law of Contract Act as it stood in 1994, with its part-performance proviso, did not defeat his title. The appeal was dismissed with costs to the 1st respondent.

Key legal issues

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01

Establishment of customary trust

Holding

A customary trust was established over the suit land

Reasoning

The 2nd respondent as registered owner admitted holding the land in trust; the appellant and her witness Mbuku Kivuta testified the land was clan land registered in the 2nd respondent's name because the husband was dead, the appellant was a woman and her sons minors. On a preponderance of this evidence, trust was established notwithstanding absence of possession or register entry.

p. 4
02

Proof of fraud against the 1st respondent

Holding

Fraud was not proved against the 1st respondent

Reasoning

The appellant's evidence did not demonstrate fraud; the 1st respondent was not shown to have known of the trust or to have colluded with the 2nd respondent. The transaction revolved around the 2nd respondent and one Kimani Mukonyi, and the 1st respondent's alleged involvement was conjectural and speculative.

p. 5
03

Protection of bona fide purchaser under Section 80(2) Land Registration Act

Holding

The 1st respondent is protected from rectification of the register

Reasoning

The Torrens system does not obligate a purchaser to look beyond the register; the trust was not noted on the register, so the 1st respondent, in possession and having acquired the land for valuable consideration without knowledge of the trust, falls within the protection of Section 80(2).

p. 5
04

Nature of the transaction - sale or gift

Holding

The transaction was a sale

Reasoning

The documents representing the transaction as a gift were authored by the 2nd respondent as transferor, not the 1st respondent; documentary evidence showed the 2nd respondent received and sought to refund Kshs. 90,000/-, inconsistent with a gratuitous gift.

p. 6
05

Applicability of Section 3(3) Law of Contract Act

Holding

Section 3(3) does not defeat the 1st respondent's title

Reasoning

The provision as it stood in 1994 permitted suits where the purchaser had gone into possession; the section is directed at those suing, not those being sued, and the 1st respondent went into possession, so the law applicable at the time comes to his aid.

06

Liability for breach of trust

Holding

The 2nd respondent breached the trust but no orders were sought against him

Reasoning

The trustee sold the land; his defence of drunkenness was not credible since he made applications, obtained consent and attended the lands office. However, all prayers were directed at the 1st respondent, and equity would not disturb the innocent purchaser's land while the trustee's own land remains untouched.

p. 6

Legal principles established

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  • A customary trust is an overriding interest under Section 28 of the Land Registration Act and need not be noted on the register; its proof is a question of evidence and the burden lies on the person alleging it
  • Fraud must be proved to a standard higher than a balance of probabilities
  • Under Section 80(2) of the Land Registration Act the register cannot be rectified to affect the title of a proprietor in possession who acquired the land for valuable consideration without knowledge of the fraud or mistake
  • A purchaser without legal title from a trustee who had no knowledge of the breach of trust can still acquire good title

Court orders

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  1. 1.The appeal is dismissed with costs to the 1st respondent

Authorities

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Legislation

  • Law of Contract ActSection 3(3) (both current and pre-1994 versions)
  • Land Registration Act, 2012Section 28
  • Land Registration Act, 2012Section 80(1) and (2)

Cases cited (8)

  • Alice Wairimu Macharia vs Kirigo Philip Macharia
    [2019] EKLR
  • Isack M'Ingara Kiebia vs Isaaya M'Lintari & Another
    [2018] EKLR
  • Gachanja Gitau & 2 others vs Mwangi Gitau
    [2016] eKLR
  • Selle & Another vs Associated Motor Boat Co. Ltd & others
    [1968] EA 123
  • Susan Mumbi Waititu vs Mukuru Ndata & 4 Others
    [2007] eKLR
  • Juletabi African Adventure Limited & Another vs Christopher Michael Lockley
    [2017] eKLR
  • RG Patel vs Lalji Makanji
    [1957] EA 314
  • Jennifer Nyambura Kamau vs Humphrey Nandi
    Civil Appeal No. 342/2010, Nyeri (2013) eKLR
On appeal from
Chief Magistrate's Court at Embu
Embu CM ELC No. 86 of 2018 (Formerly H.C. ELC No. 325 of 2015)
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's judgment and decree in Embu CM ELC No. 86 of 2018

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, "Wanjiru Njuguna v Joseph Wangondu & another [2021] KEELC 671 (KLR)", Case Analysis (2021). E.L.C. Appeal No. 5 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/671/eng@2021-10-25

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