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ELCPartially AllowedEnvironment & Land Case 27 of 2020· [2022] KEELC 15375 (KLR)

Kangethe v Muya & 4 others

Environment and Land Court
8 December 2022
7,421 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Environment and Land Court restored a 1989 landowner's title, ruling the Land Registry fraudulently cancelled it without following the law.

What this practically means

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Executive summary

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The plaintiff sought declarations that he was the lawful registered owner of Kakuzi/Kirimiri Block 8/439 by virtue of his registration and title deed issued on 5 May 1989, alternatively by adverse possession or under the Land Act and Land Registration Act, together with declarations that subsequent registrations were fraudulent and orders for cancellation of the resultant titles and restoration of his register entries. The dispute arose after the Registrar cancelled the plaintiff's entry and registered the land in the name of Mwangi Macharia Kanyatte, whose estate transmitted it to the 1st Defendant, who sold to the 2nd Defendant in 2013. The court framed five issues. It found the plaintiff was the bona fide owner: the Green Card showed him as first registered proprietor, and the Land Registrar conceded there was no record justifying the cancellation and could not confirm the statutory procedure under the repealed Land Titles Act and Registration of Titles Act was followed; the original title was never surrendered. Fraud was held not proved against the 1st-3rd Defendants, the plaintiff having failed to particularize fraud in the Originating Summons, but was established against the 4th Defendant (the Land Registry) for flaunting procedure without justification. The 2nd Defendant was held a bona fide purchaser for value without notice, having searched the register, yet his title was ordered cancelled under Sections 26(1)(b) and 80 of the Land Registration Act because it was procured unprocedurally. The adverse possession claim was not pronounced on for want of evidence. Judgment was entered for the plaintiff: the impugned entries were declared unprocedural and cancelled, the plaintiff declared bona fide owner, the 4th Defendant directed to cancel the 2nd Defendant's title and restore entries 2 and 3, with costs against the 4th Defendant.

Key legal issues

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01

Root of title where two conflicting titles exist

Holding

The plaintiff, the first allottee and first registered proprietor, was the bona fide owner; the subsequent registration of Mwangi Macharia Kanyatte was unprocedural

Reasoning

Both parties claimed allocation by Mutithi Farmers' Co-operative Society. The Green Card showed the plaintiff first registered on 5 May 1989 before cancellation. The Land Registrar admitted no file record justified the cancellation and could not confirm procedure was followed. The original title was never surrendered, and the plaintiff was never summoned as required under the repealed Land Titles Act and Registration of Titles Act.

p. 9
02

Bona fide purchaser for value without notice

Holding

The 2nd Defendant was a bona fide purchaser for value without notice

Reasoning

The 2nd Defendant bought from the 1st Defendant who held title, conducted an official search, and complied with transfer procedure. The burden under Sections 106-109 of the Evidence Act lay on the plaintiff to prove the purchaser's knowledge of the illegality, and no material evidence was adduced to discharge it, despite the purchaser having seen the plaintiff on the land in 2012.

03

Fraud

Holding

Fraud was established against the 4th Defendant (the Land Registry) but not against the 1st-3rd Defendants

Reasoning

Fraud must be strictly pleaded and proved to a standard above balance of probabilities. The plaintiff did not particularize fraud in the Originating Summons, attempting it only in submissions, which the court called trial by ambush. However, the 4th Defendant, custodian of records, gave no cogent reason for the cancellation and flaunted procedure without justification, amounting to fraud.

04

Cancellation of the 2nd Defendant's title

Holding

The 2nd Defendant's title was liable to cancellation despite his bona fide purchaser status because it was procured unprocedurally

Reasoning

Under Section 26(1)(b) of the Land Registration Act, protection is removed where title is acquired illegally, unprocedurally or through a corrupt scheme, even without the holder's complicity. Section 80 permits rectification where registration was obtained by fraud or mistake. Having found fraudulent cancellation and transfer, the court ordered cancellation and restoration of the plaintiff's entries.

p. 12

Legal principles established

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  • A registered proprietor whose root of title is challenged must prove the legality of how the title was acquired, not merely produce the title document
  • A Registrar of Titles has no power to arbitrarily revoke a valid land title; statutory cancellation procedures must be followed
  • Allegations of fraud must be strictly pleaded and proved to a standard higher than balance of probabilities
  • A title obtained illegally, unprocedurally or through a corrupt scheme is impeachable even against an innocent holder who did not contribute to the vitiating factors
  • Only a court of law can cancel a title to land on the basis of fraud or illegality

Court orders

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  1. 1.A declaration that entry No.2 and subsequent entries in the Green Card for Kakuzi/Kirimiri Block 8/439 were unprocedural and are cancelled
  2. 2.A declaration that the plaintiff is the bona fide owner of Kakuzi/Kirimiri Block 8/439
  3. 3.An order directing the 4th Defendant to cancel and/or revoke the title deed held by the 2nd Defendant
  4. 4.An order directing the 4th Defendant to restore the cancelled entries No. 2 and 3 in the Green Card
  5. 5.The 4th Defendant shall bear costs of the suit

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 40
  • Land Registration ActSections 26(1)(b), 80
  • Limitation of Actions Act Cap 22Sections 17 and 38
  • Land ActSection 7(d)
  • Land Titles Act Cap 282 (repealed)Sections 39, 81, 82
  • Registration of Titles Act Cap 281 (repealed)Sections 60, 65
  • Contract ActSection 3(3)
  • Evidence ActSections 106-109
  • Civil Procedure ActSection 27

Cases cited (22)

  • Hubert L Martin & 2 others v Margaret J Kamar & 5 others
    (2016) eKLR

    Where two titles to land exist, the court must investigate the root of each title

  • Arthi Highway Developers Limited v West End Butchery Limited & 6 others
    (2015) eKLR

    In fraudulent transfers, title should revert to the original owner

  • Alice Chemutai Too v Nickson Kipkurui Korir & 2 others
    (2015) eKLR

    Title protection removed where procured illegally, unprocedurally or through corrupt scheme

  • Chemey Investment Limited v Attorney General and Another
    Nairobi HC Petition No. 94 of 2005

    Court declining pronouncement to allow investigation of fraud - cited by 4th & 5th Defendants

  • Munyu Maina v Hiram Gathiha Maina
    Civil Appeal No. 239 of 2009

    Registered proprietor must prove legality of acquisition beyond the title instrument

  • Kuria Greens Limited v Registrar of Titles & another
    [2011] eKLR

    No provision grants a Registrar power to arbitrarily revoke a valid land title

  • Evanson Wambugu Gachugi v Simon Wainaina Gatwiki & 2 others
    [2014] eKLR

    Original title must be surrendered for cancellation before a new title issues

  • Elijah Makeri Nyangw'ara v Stephen Mungai Njuguna & Another
    Eldoret ELC Case No. 609 B of 2012

    Section 26(1)(b) removes protection even from innocent titleholders

  • Wreck Motor Enterprises v Commissioner of Lands & 3 others
    [1997] eKLR

    The earlier grant takes priority over a later approval

  • Lawrence Mukiri v Attorney General & 4 others
    [2013] eKLR

    Ingredients of a bona fide purchaser for value

  • Katende v Haridar & Company Limited
    [2008] 2 E.A. 173

    Definition and proof requirements of a bona fide purchaser

  • Weston Gitonga & 10 others v Peter Rugu Gikanga & another
    CoA App No. 291 of 2013

    Quoting Katende on bona fide purchaser doctrine

  • Elizabeth Wambui Githinji & 29 others v Kenya Urban Roads Authority & 4 others
    Civil Appeal No. 156 of 2015 [2019] eKLR

    Purchasers may rely on the register without ensuring its accuracy

  • Emfil Limited v Registrar of Titles Mombasa & 2 others
    Mombasa Civ Appeal No. 312 of 2012 [2014] eKLR

    Fraud must be strictly pleaded and proved on a higher standard

  • Robin Angus Paul & 2 others v Miriam Hemed Kale
    [2019] eKLR

    Difficulty of proving fraud through Originating Summons

  • John Kamunya & Another v John Nginyi Muchiri & 3 others
    [2015] eKLR

    Fraud must be strictly and specifically pleaded

  • Gladys Wanjiru Ngacha v Treresa Chepsaat & 4 others
    [2013] eKLR

    Standard of proof of fraud - more than balance of probabilities

  • Mutsonga v Nyati
    (1984) KLR 425

    Whether there is evidence of fraud is a question of fact

  • David Peterson Kiengo & 2 Others v Kariuki Thuo
    [2012] eKLR

    Indefeasibility protects good-faith purchasers; deprived party may claim damages from the State

  • Republic v Kisumu District Lands Officer & another
    Kisumu Misc No. 80 of 2008 [2010] eKLR

    Only the court can cancel or amend registration obtained by fraud or mistake

  • Super Nova Properties Limited & another v District Land Registrar Mombasa & 2 others
    Civil Appeal No. 98 of 2016 [2018] eKLR

    Only a court of law can cancel title on grounds of fraud or illegality

  • Charles Karathe Kiarie & 2 others v Administrators of the Estate of John Wallace Mathare (Deceased) & 5 others
    [2013] eKLR

    Torrens system; indefeasibility rebuttable only by proof of fraud or misrepresentation

Jurisdiction invoked
Original jurisdiction under Article 162(2)(b) of the Constitution (Environment and Land 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, "Kangethe v Muya & 4 others", Case Analysis (2022). Environment & Land Case 27 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/15375/eng@2022-12-08

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