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ELCPartially AllowedNairobi High Court Civil Suit No. xx of 2012 (as printed; particulars partially withheld)· [2022] KEELC 106 (KLR)

NWK & 3 others (All suing as legal representatives of the Estate of BKK (Deceased) while the 1st Plaintiff partly sues on her own behalf) v DWK (Environment and Land Case Civil Suit 388 of 2012) [2022] KEELC 106 (KLR)

Environment and Land Court
26 April 2022
11,223 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~45 min to read original · ~4 min brief

The bottom line

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A Kenyan widow won back half of two Nairobi plots her husband had transferred to his sister, proving her financial contribution despite the properties being registered in his name.

What this practically means

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Executive summary

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The plaintiffs, the widow and children of the late BKK, sued the defendant, the deceased's sister, seeking declarations that she holds two Umoja Inner Core plots as constructive trustee, an order for transfer, an injunction and costs. The plaintiffs alleged the properties were acquired jointly by the 1st plaintiff and the deceased during their marriage, that the 1st plaintiff was a beneficial co-owner as tenant in common, and that the deceased's 2002 transfer of the properties to the defendant breached that co-ownership. The defendant maintained she received the properties as an outright gift from the deceased in consideration of the care she gave him after his 2002 stroke, that the 1st plaintiff made no contribution, and that the properties therefore formed no part of the deceased's estate. The court framed six issues. Applying the pre-2010 legal framework (the Matrimonial Property Act 2013 and Constitution 2010 being inapplicable retrospectively), it found the 1st plaintiff proved direct and indirect financial contribution through joint businesses, joint accounts and sale of jointly acquired properties; the deceased's modest salary could not have funded the acquisitions. Contributions being unascertainable, the court applied 'equality is equity', assessing contributions at 50/50. As a tenant in common, the deceased could transfer only his own share; transfer of the 1st plaintiff's share was unlawful and in breach of constructive trust. However, the fraud/misuse of powers of attorney claim failed - fraud was unpleaded and the irrevocable powers authorised transfer to the defendant. The deceased's own share validly passed inter vivos and does not form part of his estate. Judgment was entered for the plaintiffs on the 1st plaintiff's claim only, with declarations of constructive trust, an order for transfer within 30 days, and each party bearing its own costs.

Key legal issues

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01

Whether the 1st plaintiff contributed to the acquisition and development of the suit properties

Holding

Yes - the 1st plaintiff made direct and indirect financial contributions through joint businesses, joint bank accounts and sale of jointly acquired properties; her contribution was assessed at 50% on the maxim equality is equity

Reasoning

The court found the suit properties were acquired between 1995 and 1999 during the marriage and registered in the deceased's sole name. The deceased's net salary was Kshs. 30,000/- per a 2004 loan application, insufficient to purchase and develop the properties. The deceased did not explain the source of the monies in his affidavit in the High Court suit. The couple ran joint businesses (restaurant, paints, hardware, road construction) and joint bank accounts, none of which was denied. Contributions being unascertainable, equality is equity was applied.

02

Whether the deceased had capacity to transfer the suit properties to the defendant without the 1st plaintiff's consent

Holding

No - the deceased, as a tenant in common holding 50%, could transfer only his own share; the transfer of the 1st plaintiff's share was unlawful and in breach of trust

Reasoning

Relying on the nature of tenancy in common (Megarry & Wade; Kurshed Begum Mirza v Jackson Kaibunga) and section 44 of the Transfer of Property Act 1882, the court held each tenant in common owns a distinct undivided share with no right of survivorship. The deceased could deal only with his 50% interest; any transfer purporting to convey the 1st plaintiff's share without her consent was void to that extent.

p. 16
03

Whether the defendant holds the suit properties in trust for the 1st plaintiff and the estate

Holding

The defendant holds 50% of each property as constructive trustee for the 1st plaintiff; she does not hold the deceased's share in trust for his estate

Reasoning

Applying the law of trusts in Juletabi African Adventure v Christopher Michael Lockley (quoting Twalib Hatayan), a constructive trust is imposed against one who acquires property by wrongdoing or in breach of trust. Having acquired the 1st plaintiff's share unlawfully, the defendant is a constructive trustee of that share. However, the deceased freely disposed of his own share inter vivos, so that share does not form part of his estate.

p. 17
04

Whether the transfer was fraudulent or a misuse of the powers of attorney

Holding

No - fraud was not pleaded with particulars, and the irrevocable powers of attorney expressly authorised the defendant to sell or transfer the property to herself

Reasoning

The court refused the alternative fraud claim because a cause of action in fraud cannot be introduced at submissions stage and must be pleaded with particulars. On the merits, the special powers of attorney included 'power to sell or transfer to himself the said property', were irrevocable, and were used during the deceased's lifetime. The deceased's continued treatment of the properties as his own was insufficient to establish fraud.

Legal principles established

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  • A co-owner who is a tenant in common can only deal with his own undivided share and cannot dispose of a co-owner's share without that co-owner's consent
  • A transfer of a co-owner's share in breach of trust makes the transferee a constructive trustee of that share
  • Where spouses' contributions to property are substantial but unascertainable, the maxim 'equality is equity' may be applied

Court orders

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  1. 1.Declaration that the defendant holds 50% share in Umoja Inner Core – Sector V Plot No. xxx and 50% share in Umoja Inner Core – Sector V Plot No. xxx as a constructive trustee
  2. 2.Declaration that the defendant holds 50% share in each of the suit properties in trust for the 1st plaintiff
  3. 3.The defendant to transfer to the 1st plaintiff forthwith and in any event within 30 days from the date of judgment 50% share in each of the suit properties
  4. 4.The 1st plaintiff and the defendant shall hold the suit properties as tenants in common in equal undivided shares; they shall agree on how to manage the properties, failing which either party may institute proceedings for severance of the tenancy
  5. 5.Each party shall bear its own costs of the suit

Authorities

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Legislation

  • Married Women's Property Act, 1882section 17
  • Matrimonial Property Act, 2013general (inapplicable to the dispute)
  • Constitution of Kenya, 2010Article 45(3)
  • Land Registration Act, 2012section 91(6)
  • Transfer of Property Act, 1882 (repealed)section 44
  • Government Lands Act, Chapter 280 Laws of Kenyaleases issued thereunder
  • Trustee Actdefinitions of trust and trustee

Cases cited (14)

  • Strong v Strong
    [2002] 2 KLR 631
  • Echaria v Echaria
    [2007] eKLR
  • Bull v Bull
    [1955] 1 ALL ER 232
  • Stack v Dowden
    [2007] UKHL 17
  • PNN v ZWN
    [2017] eKLR
  • R.M.M v T.S.M
    [2015] eKLR
  • Francis Njoroge v Virginia Wanjiku Njoroge
    [2013] eKLR
  • Samuel Kamau Macharia & another v Kenya Commercial Bank Ltd. & 2 others
    [2012] eKLR
  • Kurshed Begum Mirza v Jackson Kaibunga
    [2017] eKLR
  • Yogendra Purshottam Patel v Pascale Mireille Baksh (nee Patel) & 2 others
    [2006] eKLR
  • Nishith Yogendra Patel Legal Representative of the Deceased Plaintiff Yogendra Purshottam Patel v Pascale Mireilee Baksh (Nee Patel) & another
    [2019] eKLR
  • Juletabi African Adventure Limited & another v Christopher Michael Lockley
    [2017] eKLR
  • Twalib Hatayan Twalib Hatayan & Anor v Said Saggar Ahmed Al-Heidy & others
    [2015] eKLR
  • Charles K. Kandie v Mary Kimoi Sang
    [2017] eKLR
Jurisdiction invoked
Original civil jurisdiction of the High Court/Environment and Land Court over claims relating to land and trusts; suit brought by plaint under civil procedure law

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, "NWK & 3 others (All suing as legal representatives of the Estate of BKK (Deceased) while the 1st Plaintiff partly sues on her own behalf) v DWK (Environment and Land Case Civil Suit 388 of 2012) [2022] KEELC 106 (KLR)", Case Analysis (2022). Nairobi High Court Civil Suit No. xx of 2012 (as printed; particulars partially withheld). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/106/eng@2022-04-26

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