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ELCDismissedEnvironment and Land Appeal E055 of 2021· [2022] KEELC 15242 (KLR)

Mbogori v Nkanata & 3 others

Environment and Land Court
7 December 2022
6,159 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court cancelled a land purchase because the buyer should have known the land was ancestral family land held in trust.

What this practically means

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Executive summary

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The appellant appealed against the judgment of Hon. S. Ndegwa SPM (Githongo ELC Case No 42 of 2017, delivered 26 March 2021), which had declared LR Nkuene/Uruku/1980 ancestral family trust land, found the appellant's acquisition fraudulent, ordered cancellation of the registrations, directed the register of LR Nkuene/Uruku/1866 be amended to show the 4th respondent holding in trust for the plaintiffs, and issued a permanent injunction against the appellant. The 1st to 3rd respondents (the 4th respondent's former wife and children) had sued claiming the land, traced to original parcel Nkuene/Uruku/954, was family land held in trust by the 4th respondent, who breached the trust by secretly subdividing and transferring parcel 1980 to the appellant. The appellant, who purchased for Kshs 750,000 under agreements of July and August 2011, contended he was an innocent purchaser for value who saved the entire land from auction in Meru CMCC No 327 of 2007, and that no trust or fraud was proved. The 4th respondent filed a joint defence but did not testify. Yano J, as the first appellate court, framed three issues: whether a trust was proved, whether the respondents proved their case on a balance of probabilities, and whether the judgment was against the weight of evidence. Applying Selle v Associated Motor Boat Co, Mwangi v Wambugu, Juletabi and the Supreme Court's decision in Isack M'Inanga Kiebia, the court held the customary trust was proved, that occupation is unnecessary to prove such a trust, and that the appellant, a neighbour, ought to have known the land was ancestral and involved the family. The appeal was dismissed with costs to the 1st, 2nd and 3rd respondents.

Key legal issues

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01

Whether a customary trust over the suit land was proved

Holding

Yes - the evidence, including testimony of Muriithi Nkanata that he transferred the land to the 4th respondent to hold in trust, established a customary trust in favour of the 1st, 2nd and 3rd respondents

Reasoning

The green card showed the land was a subdivision of the original parcel belonging to the 4th respondent's father. Muriithi Nkanata testified he transferred the land to his brother to hold in trust. The 4th respondent did not testify to rebut this, so the evidence stood unchallenged. All witnesses confirmed the land was family land sold without family consent.

02

Whether the appellant was an innocent purchaser for value without notice

Holding

No - as a neighbour, the appellant ought to have known the land was ancestral land and should have involved the other family members before purchasing

Reasoning

The court found the appellant was a neighbour to the respondents and ought to have known the land was ancestral family land. Due diligence extended beyond the register to unregistered overriding interests such as trusts. The transfer in breach of trust was therefore properly nullified by the trial court.

p. 10
03

Whether lack of occupation by the beneficiaries defeats a customary trust claim

Holding

No - following the Supreme Court in Isack M'inanga Kiebia, physical possession and occupation is not necessary to prove a trust in land

Reasoning

Relying on the Supreme Court's decision, the court held that a customary trust falls under the proviso to Section 28 of the Registered Land Act, while rights of persons in possession fall under Section 30(g). The respondents' lack of occupation did not preclude enquiry into the circumstances of registration.

p. 10

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; the law never implies or the court never presumes a trust save in case of absolute necessity
  • A customary trust falls within the proviso to Section 28 of the Registered Land Act and need not be noted on the register to be enforceable
  • An appellate court will not interfere with a finding of fact by the trial court unless it is based on no evidence, misrepresentation of the evidence, or failure to take account of material circumstances

Court orders

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  1. 1.The appeal is dismissed with costs to the 1st, 2nd and 3rd respondents

Authorities

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Legislation

  • Land Control ActSections 6 and 7
  • Registered Land Act Cap 300 (repealed)Section 28 and proviso; Section 30(g)
  • Land Registration Act, 2012Section 28(2)(b)

Cases cited (10)

  • Macharia Mwangi Maina & 87 others Vs Davidson Mwangi Kagiri
    [2014] eKLR

    Purchaser's entitlement under land sale agreement and constructive trust (relied on by appellant)

  • Katende Vs Haridar & Company Limited
    (2008) 2 EA 173

    Duties of an innocent purchaser for value (relied on by appellant)

  • Margaret Nkirote and 2 others Vs Mutwiri Mutungi
    Meru HCCC ELC No 104 of 2009
  • M'Kiugu M'Mwirichia & Moses Marangu Kiara Vs Esther Nthira M'Ikiugu & 2 Others
    CA No 95 of 2009 KLR
  • Isack M'Inanga Kiebia & Isaya Theuri M'Lintari & another
    [2018] eKLR

    Elements of customary trust; trust need not be noted on register; occupation not necessary to prove trust

  • Justus Maina Muruku Vs Jane Waithira Mwangi
    [2018] eKLR
  • Selle Vs Associated Motor Boat Co
    (1968) EA 123

    First appellate court's duty to re-evaluate evidence and draw its own conclusions

  • Abdul Hammed Saif Vs Ali Mohamed Shalon
    (1955) 22 EA CA 270

    Circumstances in which appellate court may depart from trial judge's findings of fact

  • Mwangi Vs Wambugu
    (1984) KLR 453

    Appellate court will not interfere with findings of fact unless based on no evidence or misapprehension of evidence

  • Juletabi African Adventure Limited and another Vs Christopher Michael Lockley
    (2017) eKLR

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

On appeal from
ELC Court at Githongo (Senior Principal Magistrate's Court)
ELC Case No 42 of 2017
Jurisdiction invoked
First appeal to the Environment and Land Court under the Environment and Land Court Act against the judgment of the magistrates' court

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, "Mbogori v Nkanata & 3 others", Case Analysis (2022). Environment and Land Appeal E055 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/15242/eng@2022-12-07

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