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ELCPartially AllowedEnvironment & Land Case 243 of 2017· [2022] KEELC 14961 (KLR)

Ataka (Suing as the Administrator and Personal Representative of the Estate of Margret Ayoti Ataka) v Bahati & another (All Sued as Administratrix and Personal Representatives of the Estate of Benedicto Bahati Makani – Deceased)

Environment and Land Court
22 November 2022
3,909 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 ruled that land bought and registered in one person's name can still belong to someone else if written documents show it was held in trust.

What this practically means

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Executive summary

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The plaintiff, administrator of the estate of Margret Ayoti Ataka, sued the administratrixes of the estate of Benedicto Bahati Makani, seeking declarations that Benedicto and subsequently the defendants held land parcels Butsotso/Shikoti/3673 and 3674 (subdivisions of Butsotso/Shikoti/1046) in trust for Margaret Ayoti Ataka, and an order for exchange of those parcels with parcel Butsotso/Shikoti/1805. The defendants denied the trust, contended the claim was time barred, that the 2004 memorandum concerned only parcel 1805, and counterclaimed for eviction. The court framed two issues: whether a trust existed over the suit parcels and whether the reliefs sought should issue. Applying the principle that a party alleging a trust must prove it and that courts never presume a trust save in case of absolute necessity, the judge found that the memorandum of understanding dated July 19, 2004 and the contemporaneous sale agreement evidenced a tripartite transaction in which Benedicto purchased the family home from Ali Musa Chibole at KShs 540,000 and was to hold it until Margaret transferred parcel 1805. The trust property, purpose and beneficiary were clearly identified, establishing an express trust. Benedicto's subdivision of the land shortly before his death did not extinguish the trust, which extended to the resultant parcels. The plaintiff's suit therefore succeeded, while the defendants' counterclaim for eviction was dismissed. The court issued declarations of trust, ordered reciprocal transfers of parcel 1805 and parcels 3673 and 3674 within 45 days, authorised the Deputy Registrar to sign documents in default, and made no order as to costs.

Key legal issues

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01

Whether a trust was created over Butsotso/Shikoti/1046 and its subdivisions

Holding

Benedicto Bahati Makani held Butsotso/Shikoti/1046 and its subdivisions 3673 and 3674 in trust for Margaret Ayoti Ataka

Reasoning

The memorandum of understanding dated July 19, 2004 and the contemporaneous sale agreement, both prepared by the same advocate, showed a tripartite transaction: Benedicto was to purchase the family home from Chibole and hold it until Margaret could transfer parcel 1805. The trust property, purpose and beneficiary were clearly identified, satisfying the tenets of an express trust. The defendants led no evidence of non-payment.

p. 7
02

Whether the defendants' counterclaim for eviction should succeed

Holding

The counterclaim was not merited and was dismissed

Reasoning

Having found that the parcels were held in trust for Margaret Ayoti Ataka and that the plaintiff's family remained in occupation, the defendants could not establish lawful entitlement to evict the plaintiff. The court found the plaintiff had established his case and the counterclaim failed.

p. 7

Legal principles established

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  • The onus lies on a party relying on the existence of a trust to prove it through evidence; courts will not imply a trust save in case of absolute necessity
  • Trusts are created either expressly by the parties or by operation of law; an express trust arises where the trust property, its purpose and beneficiaries have been clearly identified

Court orders

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  1. 1.The defendants' counterclaim is dismissed
  2. 2.A declaration that Benedicto Bahati Makani (deceased) held Land Parcel Numbers Butsotso/Shikoti/3673 and Butsotso/Shikoti/3674 in trust for Margaret Ayoti Ataka, her personal representatives and the administrators of her estate
  3. 3.A declaration that the defendants hold Land Parcel Number Butsotso/Shikoti/3673 and Land Parcel Number Butsotso/Shikoti/3674 in trust for Margaret Ayoti Ataka, her personal representatives and the administrators of her estate
  4. 4.The plaintiff as administrator of the estate of Margaret Ayoti Ataka to transfer Land Parcel Number Butsotso/Shikoti/1805 to the defendants within 45 days from the date of delivery of the judgment
  5. 5.The defendants to transfer Land Parcel Numbers Butsotso/Shikoti/3673 and Butsotso/Shikoti/3674 to the plaintiff within 45 days from the date of transfer of Land Parcel Number Butsotso/Shikoti/1805
  6. 6.In default of any party signing the necessary documents, the Deputy Registrar of the court is authorised to sign on his or her behalf
  7. 7.No order as to costs of the suit and the counterclaim

Authorities

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Legislation

  • Land Registration ActSections 24 and 26
  • Limitation of Actions ActSection 4
  • Trustee ActNot specified
  • Registration of Documents ActNot specified

Cases cited (8)

  • Juletabi African Adventure Limited & another v Christopher Michael Lockley
    [2017] eKLR

    Onus lies on a party relying on the existence of a trust to prove it through evidence

  • Gichuki v Gichuki
    [1982] KLR 285

    Courts will not imply a trust save in case of absolute necessity

  • Mbothu & 8 Others v Waitimu & 11 Others
    [1986] KLR 171

    Intention of the parties to create a trust must be clearly determined before a trust will be implied

  • Twalib Hatayan Twalib Hatayan & Anor v Said Saggar Ahmed Al-Heidy & others
    [2015] eKLR

    Basic tenets and definition of a trust; express and implied trusts

  • Shah v Shah
    (1988) KLR

    Court must give effect to the intent of parties (relied on by plaintiff)

  • Omar Gorhan v Municipal Council of Malindi (Council Government of Kilifi) v Overlook Management Kenya Ltd
    [2020] eKLR

    Source through which plaintiff cited Shah v Shah

  • Spentech Engineering Limited v Methode Limited & 2 others
    [2017] eKLR

    Sale agreement takes precedence over memorandum of understanding (relied on by defendants)

  • Heartbeat Limited v Ngambwa Heartbeat Community Children's Home & Rescue Center
    [2018] eKLR

    What constitutes a trust (relied on by defendants)

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over disputes relating to title and occupation of land

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, "Ataka (Suing as the Administrator and Personal Representative of the Estate of Margret Ayoti Ataka) v Bahati & another (All Sued as Administratrix and Personal Representatives of the Estate of Benedicto Bahati Makani – Deceased)", Case Analysis (2022). Environment & Land Case 243 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/14961/eng@2022-11-22

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