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ELCPartially AllowedNot stated in the judgment (plaint dated 27th April 2010, amended 19th March 2015)· [2022] KEELC 3176 (KLR)

Okapesi v Ekweny (Environment and Land Case Civil Suit 186 of 2017) [2022] KEELC 3176 (KLR)

Environment and Land Court
8 June 2022
5,106 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that paying for land in full and occupying it creates ownership rights, even without Land Control Board consent.

What this practically means

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Executive summary

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The Plaintiff sued by plaint dated 27th April 2010 (amended 19th March 2015) seeking a declaration that he owned land parcel South Teso/Apokor/2308 (0.025ha), KShs.675,000, a permanent injunction and costs. He alleged the Defendant sold him the plot by agreement dated 16th July 2005 for about KShs.170,000-175,000, that he took possession, completed the incomplete shop and built a toilet, and that the Defendant later served a notice to quit treating him as a tenant. The Defendant denied the sale, contending any agreement was for a 25x100ft undeveloped portion at KShs.160,000 of which only KShs.15,000 was paid (as rent arrears), pleaded a tenancy, and counterclaimed for dismissal of the suit, eviction and a declaration of incompetence, arguing the transaction was void for want of Land Control Board consent and time-barred. After full trial with three witnesses on each side, the court framed four issues. It found a valid written agreement complying with section 3 of the Law of Contract Act; inferred from the NIL balance entry and the Defendant's conduct (five years' possession without demand for rent or vacant possession, no lease produced, no suit for specific performance) that the full purchase price was paid; and, applying Willy Kimutai Kitilit and Macharia Mwangi Maina, held that the absence of LCB consent did not defeat equity - full payment and possession created a constructive trust in the Plaintiff's favour. The suit, filed in January 2010, was within the six-year limitation period, so the counterclaim failed. Judgment was entered for the Plaintiff with a declaration of ownership by constructive trust, an order for execution of transfer documents within 90 days (failing which the Deputy Registrar to execute), a permanent injunction, and costs of the suit to the Plaintiff.

Key legal issues

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01

Whether there was a valid sale agreement between the parties

Holding

Yes - a valid written sale agreement for 0.025ha at KShs.170,000 existed, complying with section 3 of the Law of Contract Act.

Reasoning

Both parties produced executed agreements for the sale of a portion measuring 0.025ha for KShs.170,000, witnessed and signed. The agreements satisfied section 3 of the Law of Contract Act requiring writing, signatures of all parties and attestation. The Defendant never alleged duress or coercion, and the Assistant Chief's absence as witness did not invalidate the contract.

p. 6
02

Whether the purchase price was paid in full

Holding

The court inferred from the Defendant's conduct that the full purchase price was paid; the balance was recorded as NIL and the Defendant was bound by the agreement.

Reasoning

The Plaintiff's witnesses consistently confirmed payment of the entire price; the agreement recorded the balance as NIL; the Defendant allowed possession for five years without demanding vacant possession or rent, produced no lease agreement, and did not sue for specific performance. The court drew the inference that the price was paid and held the Defendant bound by the agreement absent proof of fraud or coercion.

p. 7
03

Effect of failure to obtain Land Control Board consent

Holding

Although the transaction would ordinarily be void under section 6 of the Land Control Act, equity intervenes: the Plaintiff's full payment and possession created a constructive trust.

Reasoning

Relying on Willy Kimutai Kitilit v Michael Kibet and Macharia Mwangi Maina, the court held that lack of LCB consent does not preclude equitable relief. The court also questioned whether a commercial plot with a shop qualifies as agricultural land, and held that the Plaintiff's payment in full and possession created a constructive trust even though trust was not specifically pleaded.

p. 7
04

Whether the suit and the Defendant's counterclaim were barred by limitation

Holding

No - the six-year limitation period ran from 2005 and the suit filed in January 2010 was within time; the counterclaim based on limitation therefore failed.

Reasoning

The contract was executed in July and August 2005, so the six-year period under section 7 of the Limitation of Actions Act would expire in June or July 2011. The suit filed in January 2010 was within time, and the defence of limitation was misplaced.

p. 9

Legal principles established

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  • Lack of Land Control Board consent does not preclude a court from giving effect to equitable principles, in particular the doctrine of constructive trust.
  • Receiving the full purchase price and putting the purchaser in possession creates a constructive trust in favour of the purchaser.
  • Courts cannot rewrite contracts between parties; parties are bound by the terms of their contracts unless coercion, fraud or undue influence are pleaded and proved.

Court orders

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  1. 1.A declaration that the Plaintiff has by way of constructive trust acquired 0.025ha of the land parcel known as South Teso/Apokor/2308 together with the fixtures thereon
  2. 2.The Defendant is directed to execute in favour of the Plaintiff the transfer documents and consents in respect of land parcel known as South Teso/Apokor/2308 measuring 0.025ha within 90 days from the date of judgment, failure to which the Deputy Registrar shall execute the same on behalf of the Defendant
  3. 3.An order of permanent injunction issued against the Defendant restraining him, his family members, servants and/or agents from interfering with the Plaintiff's possession of land parcel known as South Teso/Apokor/2308
  4. 4.The Plaintiff is awarded the costs of the suit

Authorities

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Legislation

  • Law of Contracts Act (Law of Contract Act)section 3
  • Land Control Act, CAP 302section 6
  • Limitation of Actions Actsection 7
  • Evidence Actsections 107 and 109

Cases cited (4)

  • Willy Kimutai Kitilit v Michael Kibet
    [2018] eKLR
  • Macharia Mwangi Maina & 87 Others v. Davidson Mwangi Kagiri
    [2014] eKLR
  • Pius Kimaiyo Langat versus Co-operative Bank of Kenya Ltd
    [2017] eKLR
  • Swake C. Kariuki and Another vs. Violet Owiso Ouko
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over land disputes (suit filed by plaint)

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, "Okapesi v Ekweny (Environment and Land Case Civil Suit 186 of 2017) [2022] KEELC 3176 (KLR)", Case Analysis (2022). Not stated in the judgment (plaint dated 27th April 2010, amended 19th March 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/3176/eng@2022-06-08

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