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ELCPartially AllowedEnvironment and Land Appeal E076 of 2021· [2023] KEELC 15845 (KLR)

Kibanga v Chege & 5 others

Environment and Land Court
9 February 2023
4,679 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This first appeal from the Thika Chief Magistrate's Court concerned parallel titles over Ruiru East Block 1/3145. The 1st respondent held a title issued in 2009; the appellant held a later title obtained in 2011 from Johnson Wachira, the 2nd respondent, who had been registered in 2010 after an allegedly fraudulent transfer from the 1st respondent. The trial court upheld the 1st respondent's title, dismissed the appellant's counterclaim in its entirety, and rejected the Bank's claim to priority under its charge. On appeal, Eboso J reaffirmed the duty of a first appellate court to re-evaluate the evidence. Applying Section 107 of the Evidence Act, the court held that once the 1st respondent showed he neither sold nor transferred the property, the burden lay on the appellant and the 2nd respondent to prove how Wachira acquired title; they failed, and Wachira never defended the counterclaim. Relying on Munyu Maina v Hiram Gathiha Maina and Arthi Highway Developers, the court held that a holder of a challenged title must prove its legitimacy beyond dangling the instrument, and that a fraudulently generated title does not divest the true proprietor. However, the court faulted the trial court for rejecting the counterclaim entirely: the appellant proved the sale agreement and payment, and had pleaded alternative damages. The court set aside the counterclaim findings and awarded the appellant Kshs 2,150,000 (the purchase price) with interest from 30/8/2013 against Wachira. Damages against the Land Registrar were refused because negligence was not pleaded. Wachira was condemned to bear the innocent parties' costs in the suit and the appeal; the Attorney General and parties it represented were to bear their own costs.

Key legal issues

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01

Whether the trial court erred in upholding the 1st respondent's title and rejecting the appellant's title

Holding

No error; the 1st respondent proved he neither sold nor transferred the property, and the appellant failed to discharge the burden of showing how Johnson Wachira acquired title

Reasoning

Under Section 107 of the Evidence Act, once the 1st respondent demonstrated he neither sold nor transferred the suit property, the burden shifted to the appellant and the 2nd respondent to show how Johnson Wachira acquired title. Johnson Wachira never defended the counterclaim or testified. The appellant could not rebut the evidence that the registration in Wachira's name was fraudulent and the title passed to him a fake.

p. 6
02

Whether the trial court erred in rejecting the appellant's counterclaim in its entirety

Holding

Yes, in part; the appellant proved the sale agreement and payment to Johnson Wachira, so judgment on the counterclaim should have been entered against Wachira for damages

Reasoning

The appellant proved he entered a sale agreement with Johnson Wachira and paid the agreed purchase price, and had pleaded an alternative relief for damages. There was no reason for the trial court to reject the counterclaim entirely; it ought to have awarded damages against Wachira. Damages were assessed at the purchase price since no evidence of market value or development costs was tendered.

p. 7
03

Costs of the appeal and the primary suit

Holding

Johnson Wachira, whose fraudulent activities caused the litigation, to bear costs of the innocent parties in both the suit and the appeal

Reasoning

Both the suit and the appeal flowed directly from Johnson Wachira's fraudulent activities. It was therefore just that he bear the costs of the innocent parties - the 1st respondent, the appellant and the Bank - in the primary suit and in the appeal, while the Attorney General and parties it represented bear their own costs.

p. 8

Legal principles established

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  • A first appellate court must re-evaluate the whole evidence and arrive at its own independent conclusions
  • Where a registered proprietor's root of title is under challenge, it is not sufficient to dangle the instrument of title; the proprietor must prove the legality of the acquisition
  • A title that is a product of fraud does not divest the true proprietor, and an innocent holder of legal title cannot be dispossessed by a fraudster

Court orders

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  1. 1.The trial court's findings on the counterclaim by Daniel Gichuki Kibanga set aside and substituted with an award on the counterclaim as against Johnson Wachira for damages in the sum of Kshs 2,150,000 together with interest at court rate from 30/8/2013 till payment in full
  2. 2.The trial court's orders on costs set aside and substituted with an order condemning Johnson Wachira to bear costs of Stephen Maina Chege, Daniel Gichuki Kibanga and Kenya Commercial Bank Ltd in the primary suit
  3. 3.Johnson Wachira to bear costs of the above parties in this appeal
  4. 4.The Attorney General and the parties represented by the Attorney General to bear their own costs

Authorities

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Legislation

  • Land Registration ActSection 26(1)
  • Land Registration ActSection 80(2)
  • Evidence ActSection 107

Cases cited (5)

  • Susan Munyi v Keshar Shiani
    (2013) eKLR

    Duty of a first appellate court to analyze and evaluate the evidence afresh and reach independent conclusions

  • Abok James Odera t/a A. J Odera & Associates v John Patrick Machira t/a Machira & Co Advocates
    [2013] eKLR

    First appellate court's primary role to re-evaluate, re-assess and re-analyse the record

  • Munyu Maina v Hiram Gathiha Maina
    [2013] eKLR

    Registered proprietor must prove legality of acquisition where root of title is under challenge

  • Arthi Highway Developers Limited v West End Butchery Limited & others
    [2015] eKLR

    A title that is a product of fraud does not divest the true proprietor; innocent holder of legal title cannot be dispossessed by a fraudster

  • Elizabeth Wambui Githinji & 29 others v Kenya Urban Roads Authority & 4 others
    [2019] eKLR

    Protection of an innocent purchaser for value without notice (cited by the 6th respondent)

On appeal from
Thika Chief Magistrate Court
Thika MCL & E Case No 67 of 2012 (Thika Civil Suit No 192 of 2018)
Jurisdiction invoked
First appellate jurisdiction of the Environment and Land Court over appeals from the Chief Magistrate's Court (Environment and Land Court Act)

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, "Kibanga v Chege & 5 others", Case Analysis (2023). Environment and Land Appeal E076 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/15845/eng@2023-02-09

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