Vincent Ekeya Omuse & 7 others v Sauti Savings & Credit Co-operative Society Limited & 9 others [2021] KEELC 2229 (KLR)
The bottom line
#Kenya's Environment and Land Court confirmed it can hear land-buying disputes against cooperatives, and froze the property's status until trial.
What this practically means
#Executive summary
#Key legal issues
#Whether the ELC or the Co-operatives Tribunal has jurisdiction over this dispute
The ELC has jurisdiction; the Tribunal's jurisdiction under Section 76 excludes disputes by non-members, and the sale agreements were between the Plaintiffs as purchasers and the 1st Defendant as vendor, not member transactions
Section 76 of the Co-operative Societies Act confers jurisdiction on the Tribunal over disputes between members/past members and the society under Section 76(1)(b). Only the 1st Plaintiff claimed membership; no proof of the others' membership was provided, and the exhibited sale agreements do not show purchases as members. The dispute concerns title to and dealing with land, within Section 13 of the ELC Act.
Whether the limitation objection could be determined preliminarily
No - it requires evidence of when the causes of action arose, given differing completion dates in the sale agreements
The Defendants dated the cause of action to the sale agreements; the Plaintiffs to the March 2021 interference. The agreements contain different completion dates determinable only at trial. A preliminary objection must rest on facts as pleaded without need for further proof.
Whether a caveat and injunction should issue to protect the Plaintiffs' claimed interests
The court preserved the position by ordering status quo over the Suit Property pending trial, in the interest of justice and preservation of the subject matter
The Defendants did not deny selling the plots or the activities on the land. The 2014 ADM resolution (confirmed 2019) to dispose of the property did not recognise the portions already sold to the Plaintiffs, placing their rights at risk. Balancing the parties' interests and the small area claimed (7.98%), status quo was the just preservation measure.
Whether the 3rd and 4th Plaintiffs' claims fail for want of written agreements under Section 3(3) of the Law of Contract Act
Reserved for determination at the hearing
The plaint indicates the 4th Plaintiff purchased plot no. 533(1317); whether there was contravention of Section 3(3) of the Law of Contract Act requires evidence and cannot be resolved on a preliminary objection.
Legal principles established
#- A preliminary objection should raise pure points of law requiring no evidence
- Jurisdiction must be addressed as soon as it is raised
- The ELC has jurisdiction over land-sale disputes involving non-members of a cooperative society; the Co-operatives Tribunal's jurisdiction under Section 76 excludes disputes by non-members
- Limitation defences requiring evidence of when the cause of action arose cannot be determined on a preliminary objection
Court orders
#- 1.Preliminary objection dated 04/05/2021 dismissed on its grounds
- 2.Status quo pertaining to Nairobi/Block 82/8760 to be maintained pending hearing and final determination of the suit
- 3.Costs of the application to be in the cause
- Jurisdiction invoked
- Article 162(2)(b) of the Constitution; Sections 13 of the ELC Act and 150 of the Land Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Vincent Ekeya Omuse & 7 others v Sauti Savings & Credit Co-operative Society Limited & 9 others [2021] KEELC 2229 (KLR)", Case Analysis (2021). Not stated in judgment (application dated 11/03/2021 within a suit concerning Nairobi/Block 82/8760). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/2229/eng@2021-08-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.