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ELCAllowed· [2021] KEELC 1938 (KLR)

In re RGK [2021] KEELC 1938 (KLR)

Environment and Land Court
29 September 2021
520 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~2 min to read original · ~4 min brief

The bottom line

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A Kenyan court allowed a mother to sell land she co-owns with her 5-year-old son, provided the child remains a registered owner of the replacement property.

What this practically means

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Executive summary

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The exparte applicant sought leave to sell parcel Abothuguchi/Ruiga/xxxx, registered jointly in her name and that of her 5-year-old son BJ, so that the proceeds could be invested for their benefit. She explained that she is developing commercial property L.R No. Ntima/Igoki/xxxx which had run into loan arrears, and that the sale proceeds would defray the arrears and enable completion of the complex, whose expected rental income would support the applicant, the minor and two other siblings. The applicant swore a supporting affidavit, testified in court and filed written submissions. The court identified the statutory basis for authorizing dealings with trust property in Sections 13, 17, 56, 57 and 65 of the Trustee Act read with Order 37 rule 1 of the Civil Procedure Rules. Applying Article 53 of the Constitution and section 4(1) and (2) of the Children Act, the court held the transaction was in the minor's best interests. It also applied In Re Eunice Wanjeri Njenga on the trustee's duty of accountability and disclosure, finding the applicant had met that threshold. The application was allowed. The court directed that the minor's name be included as a registered owner of Ntima/Igoki/xxxx, with documentation to be furnished within 120 days under Section 4(1) of the Trustee Act, ordered costs of valuation, transfer and the application to be realized from the sale proceeds under section 59, and directed that the balance of the proceeds be reinvested for the minor's future benefit.

Key legal issues

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Whether leave should be granted to a trustee to sell jointly-owned property including a minor's share

Holding

Leave granted; the sale and proposed reinvestment is in the minor's best interests and the applicant met the trustee disclosure threshold

Reasoning

The court found statutory power under Sections 13, 17, 56, 57 and 65 of the Trustee Act with Order 37 rule 1 to authorize dealings with trust property. The applicant gave reasons: loan arrears on a commercial property whose completion would generate rental income for the welfare of the minor and siblings. The court applied Article 53 of the Constitution and section 4(1) & (2) of the Children Act on the best interests of the child, and In Re Eunice Wanjeri Njenga on trustee accountability.

p. 1

Legal principles established

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  • An absolute proprietor's right to dispose of land does not relieve them of trustee duties, including accountability and disclosure.
  • The court may authorize dealings with trust property such as sale and direct how capital or income is to be utilized.

Court orders

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  1. 1.Leave granted to the applicant to sell parcel Abothuguchi/Ruiga/xxxx registered in her name and that of the minor BJ
  2. 2.The minor's name to be included as one of the registered owners of L.R Ntima/Igoki/xxxx at the lands office
  3. 3.Applicant to furnish the court with appropriate documentation to that effect within 120 days, as per Section 4(1) of the Trustee Act
  4. 4.Costs of and incidental to the valuation, transfer and the application to be realized from the sale proceeds under section 59 of the Trustee Act
  5. 5.Balance of the sale proceeds to be re-invested for and on behalf of the minor for his future benefit

Authorities

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Legislation

  • Trustee Act (Cap 167)Sections 13, 17, 56, 57, 65, 59, 4(1)
  • Civil Procedure RulesOrder 37 rule 1
  • Constitution of KenyaArticle 53
  • Children ActSection 4(1) & (2)
  • Land Registration ActSection 25(2)

Cases cited (1)

  • In Re Eunice Wanjeri Njenga
    (2013) eKLR
Jurisdiction invoked
Sections 13, 17, 56, 57 and 65 of the Trustee Act (Cap 167) read with Order 37 rule 1 of the Civil Procedure Rules

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, "In re RGK [2021] KEELC 1938 (KLR)", Case Analysis (2021). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/1938/eng@2021-09-29

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