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ELCPartially AllowedNot stated in the judgment· [2022] KEELC 3325 (KLR)

Diaken Investment Company Limited v Muikia & another (Environment & Land Case 467 of 2015) [2022] KEELC 3325 (KLR)

Environment and Land Court
9 June 2022
3,953 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that buying land only after a deceased owner's estate is fully administered gives you an unshakeable title—and that competing earlier sales to family members fail.

What this practically means

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Executive summary

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The Plaintiff company sued the Defendants seeking a permanent injunction, a declaration of ownership, eviction, removal of cautions, supervised enforcement, special damages of Kshs.79,650 and general damages for trespass and malicious damage over Title No. Karai/Gikambura/3636. The Plaintiff bought the land from Peter Kihiko Njunge by agreement dated 21st May 2012 for Kshs.2.8 million and was registered as proprietor on 28th May 2012. The Defendants claimed that the 1st Defendant's late wife, Elizabeth Wairimu Muikia, had purchased the same land in 2009 from the vendor and from another beneficiary, and that the vendor held it on constructive trust. The court framed four issues: regularity of the sale to the Plaintiff, regularity of the sale to Elizabeth Muikia, entitlement to reliefs, and costs. It found that the estate of the original registered proprietor had been administered in Nairobi Succession Cause No. 1909 of 2009, the grant confirmed and titles issued before the sale to the Plaintiff, making that sale proper. The Defendants' competing sale of 2009 preceded the grant and was irregular. The vendor's denial of the sale was disbelieved as he had never sued to recover the land nor reported fraud to the DCI. The Plaintiff's title was protected under Section 26 of the Land Registration Act. Judgment was entered for the Plaintiff on a permanent injunction, declaration of ownership, removal of structures within 90 days, removal of cautions within 30 days, police-supervised enforcement and costs. However, special damages of Kshs.79,650 failed for want of specific proof, and general damages were not awarded.

Key legal issues

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01

Whether the sale of the suit land to the Plaintiff was regular

Holding

The sale to the Plaintiff was regular because it took place after the Certificate of Confirmation of Grant had been issued and after title had been issued to the vendor

Reasoning

Mary Nyakio Njunge's estate was confirmed and distributed in Nairobi Succession Cause No. 1909 of 2009, with the ½ acre portion going to Peter Kihiko Njunge. Title was issued to him on 9th April 2012 and the sale agreement with the Plaintiff is dated 21st May 2012, after confirmation of the grant. A search dated 21st May 2012 showed him as registered owner. Land Control Board consent was obtained and the transfer registered. The sale was therefore proper.

p. 6
02

Whether the sale of the suit land to Elizabeth Wairimu Muikia was regular

Holding

The 2009 sale to Elizabeth Wairimu Muikia was irregular as no grant of letters of administration had been issued at the time

Reasoning

Elizabeth Wairimu Muikia purchased the suit land in 2009, at a time when the estate of the registered proprietor, Mary Nyakio Njunge, was unadministered. The vendor had no title to pass and no grant had been taken out. An earlier objection by the deceased wife in the succession proceedings was rejected. The court therefore found the competing sale invalid.

p. 6
03

Whether the Defendants' claim of fraud defeated the Plaintiff's title

Holding

No fraud by the Plaintiff was proved; the vendor's denial of the sale was disbelieved

Reasoning

The Plaintiff obtained title after due process including Land Control Board consent. DW2 Peter Kihiko Njunge denied selling to the Plaintiff but admitted he had no title, had never sued to recover the land and never reported fraud to the DCI. The court found his evidence untruthful and the Plaintiff's registered title protected under Section 26 of the Land Registration Act.

p. 7
04

Whether the Plaintiff was entitled to special damages

Holding

The claim for special damages of Kshs.79,650 failed for want of specific proof

Reasoning

Although special damages were pleaded, the Plaintiff was required to specifically prove them. The Plaintiff alleged that the 1st and 2nd Defendants destroyed the perimeter wall, but led no evidence confirming this. General damages for trespass and malicious damage therefore also could not be awarded.

p. 7

Legal principles established

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  • A certificate of title is prima facie evidence of absolute and indefeasible ownership, challengeable only on fraud or misrepresentation to which the proprietor is party, or where acquired illegally, unprocedurally or through a corrupt scheme
  • Special damages must both be pleaded and specifically proved
  • A disposition of a deceased person's property made before a grant of letters of administration is issued is not a valid sale

Court orders

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  1. 1.A permanent injunction restraining the Defendants from entering or trespassing on, erecting structures, destroying the chain link fence, uprooting blue gum poles and crops, dumping building materials or interfering with the Plaintiff's quiet possession, occupation, proprietorship and ownership of Title No. Karai/Gikambura/3636.
  2. 2.A declaration that the Plaintiff is the absolute proprietor and registered owner of Title No. Karai/Gikambura/3636 with effect from 28th May 2012.
  3. 3.An order directing the Defendants to remove all semi-permanent or permanent structures from the suit land within 90 days of judgment, failing which the Plaintiff may use lawful means to remove them.
  4. 4.An order that the Kiambu District Land Registrar remove the caution(s) and letters of restriction lodged against Title No. Karai/Gikambura/3636 within 30 days of judgment.
  5. 5.That the OCS Kikuyu Police Station supervise enforcement of the orders.
  6. 6.Costs of the suit and interest.

Authorities

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Legislation

  • Land Registration ActSection 26
  • Law of Succession ActSections 45, 55, 82(b), 70, 37, 3(1)
  • Probate and Administration RulesRule 39

Cases cited (2)

  • WW v Severin Kinyanjui Njoroge & Another
    [2021] eKLR
  • Re-Estate of Paul M'Maria (Deceased)
    [2017] eKLR
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court over disputes relating to title to land (not expressly stated in the judgment)

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, "Diaken Investment Company Limited v Muikia & another (Environment & Land Case 467 of 2015) [2022] KEELC 3325 (KLR)", Case Analysis (2022). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/3325/eng@2022-06-09

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