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ELCPartially AllowedPetition 25 of 2021· [2023] KEELC 17188 (KLR)

Brookshil Limited & another v County Government of Kwale & 3 others; Mwadzugwe & 2 others (Interested Parties)

Environment and Land Court of Kenya
3 May 2023
11,227 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Environment and Land Court in Kwale cancelled two Diani Beach titles because the buyers could not prove they did proper due diligence before buying.

What this practically means

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Executive summary

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The Petitioners, registered lessees of LR Nos Kwale/Diani Beach Block/1526 and 1527, petitioned over the County Government of Kwale's letter of 28 November 2018 suspending development permission for a perimeter wall, seeking declarations, certiorari, injunctions, security orders and damages. The County Government filed a cross-petition alleging the head lease to Diccon Croft Wilcock expired in 2013 without renewal and that the Petitioners' titles were fraudulent, seeking reversion of the land. The Interested Parties claimed ancestral ownership and historical injustice. The court first upheld its jurisdiction, agreeing with Yano J's earlier ruling, and held judicial review reliefs could be sought within the petition. On fair administrative action, the court found the suspension breached Article 47 and section 4 of the Fair Administrative Action Act because the Petitioners were given no opportunity to be heard. However, on ownership, applying Munyu Maina and Daudi Kiptugen, the court held the Petitioners failed to prove due diligence, payment of the Kshs 18,000,000 consideration, stamp duty, rates clearance, consents or the history of the subdivisions, and were not bona fide purchasers; their titles were illegal. Relying on Dina Management, the court held illegally acquired property enjoys no Article 40 protection. The head lease having expired unrenewed, the land reverted to the State as public land, vesting in the County Government of Kwale under Article 62(2). The petition was dismissed with costs; the cross-petition succeeded; the registrations were declared null and void, the register was ordered rectified, and the parcels revert to the County Government in trust for the people of Kwale, administered by the National Land Commission. No orders were made on parcel 1352, and the Interested Parties' titles and ancestral claims were rejected.

Key legal issues

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01

Whether suspension of development permission without a hearing violated Article 47 and fair administrative action

Holding

Yes - the suspension letter gave no opportunity to be heard and breached Article 47 and section 4 of the Fair Administrative Action Act

Reasoning

The court accepted the County had power to suspend under section 29 of the Physical Planning Act and that the letter was in writing with reasons. However, the Act is silent on procedure for suspension upon complaint, and the general spirit of the Act contemplates representations. The letter was final in tone with no invitation to be heard, breaching natural justice and Article 47.

p. 12
02

Whether the Petitioners' registration as proprietors was legal and whether they were bona fide purchasers

Holding

No - the registration was unprocedural and the Petitioners were not bona fide purchasers for value without notice

Reasoning

The Petitioners produced no official search predating the sale, no proof of payment of the Kshs 18,000,000 consideration, no stamp duty valuation form or payment, no rates clearance certificate, no consents to transfer, and no green card or parcel file evidence. Due diligence must go beyond the register; the burden under section 107 of the Evidence Act lay on the Petitioners and was not discharged.

p. 16
03

Whether the head lease expired and the land reverted to the County Government as public land

Holding

Yes - the 99-year head lease to Wilcock expired in 2013 without renewal and the land reverted to the State, vesting in the County Government of Kwale under Article 62(2)

Reasoning

There was no evidence of surrender, extension or renewal of the head lease. Wilcock, a deceased non-citizen, held the lease from the Government of Kenya; on expiry the land reverts to the lessor by operation of law. Under Article 62(1)(c) and 62(2)(a), land transferred to the State by reversion is public land vesting in the county government in trust for residents, administered by the National Land Commission.

p. 18
04

Whether judicial review reliefs could be sought within a constitutional petition

Holding

Yes - nothing bars judicial review reliefs in a petition where ownership is also in issue before the same court

Reasoning

The court held that filing separate proceedings would be inefficient and contrary to the objectives of the Civil Procedure Act and the Environment and Land Court Act, and that judicial review reliefs may be granted so long as the court applies the established legal elements and precedent when reviewing the decision.

p. 8

Legal principles established

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  • Where a registered proprietor's title root is under challenge, the proprietor must prove the legality of the acquisition beyond the title instrument
  • Judicial review is concerned with the decision-making process, not the merits of the decision
  • A property cannot have two valid title deeds or certificates of lease at the same time
  • Article 40 protection does not extend to property unlawfully acquired; a purchaser cannot benefit from the bona fide purchaser doctrine where the root of title is challenged

Court orders

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  1. 1.The petition is dismissed with costs to the Respondents except the 2nd Respondent the National Land Commission who did not participate in these proceedings
  2. 2.The Cross Petition succeeds
  3. 3.The registration of the Petitioners as proprietors as Lessees of LR. No. Kwale/Diani Beach/1526 and LR. No. Kwale/Diani Beach/1527 was illegal, null and void
  4. 4.The suit properties Land Reference Number Kwale/Diani Beach Block/1526 and Land Reference Number Kwale/Diani Beach Block 1527 shall revert and be held by the County Government of Kwale in trust for the people resident in the county to be administered on their behalf by the National Land Commission
  5. 5.The Chief Land Registrar shall cause the register for LR. No. Kwale/Diani Beach/1526 and LR. No. Kwale/Diani Beach/1527 to be rectified by expunging the entries in respect of the Petitioners and the 1st and 2nd Interested Parties
  6. 6.The Petitioners shall also bear the Costs of the cross petition in terms of 1 above

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 10, 19, 20, 21(1), 24, 27(1)&(2), 40, 40(3)(b), 40(6), 47, 47(1), 50(1), 60(1)(b), 62, 64(a)&(b), 66, 67, 159(2)(d), 232(e)
  • Fair Administrative Action ActSections 3, 4
  • National Land Commission ActSection 14(3)(4) and (7)
  • Land Registration Act, 2012Sections 26, 38(1), 46, 80(1)
  • Physical Planning Act (Cap 286) (repealed)Sections 29, 33(1), 35(2), 41(4)
  • Law of Contract ActSection 3
  • Stamp Duty Act (Cap 480)General
  • Evidence Act (Cap 80)Section 107
  • Civil Procedure ActObjectives
  • Environment and Land Court ActObjectives

Cases cited (17)

  • Daniel Toroitich Arap Moi v Mwangi Stephen Muriithi & another
    [2014] eKLR

    Submissions cannot take the place of evidence

  • Aloise Matuya Mositi – Vs- National Environment Management Authority & Another
    (2020) eKLR

    Relied on by 1st Respondent on validity of administrative suspension

  • William S. K Ruto –Vs- The Attorney General
    HCC No. 1192 of 2005 Nairobi

    Titles cancelled for having been obtained fraudulently

  • Silas Make Otuke –Vs- The Attorney General & 3 Others
    (2014) eKLR

    Titles cancelled for fraud, citing Lazarus Estates

  • Lazarus Estates Limited –Vs- Beasley
    (1961) 1 ALL ER 240

    Fraud vitiates title

  • Dennis Kuria & Another –Vs- The Attorney General
    Nairobi Miscellaneous No. 663 of 2006

    Public trust; importance of a land parcel's history in establishing legality of ownership

  • Alice Chemutai Too –Vs- Nickson Kipkurui Korir & 2 Others
    (2015) eKLR

    Section 26 Land Registration Act protecting real title owners

  • Amon V Raphael Tuck & Sons Ltd
    [1956] 1 All ER 273

    Test for a necessary party

  • Tom Luusa Munyasya & Another Versus Governor of Makueni County & 2 Others
    [2014] eKLR

    County government capacity to sue and be sued independently

  • Municipal Council of Mombasa v Republic & Umoja Consultants Ltd (Interested Party)
    Civil Appeal 185 of 2001 [2002] eKLR

    Judicial review concerns process, not merits of the decision

  • Shimoni Resort v Registrar of Titles & 5 others
    [2016] eKLR

    Natural justice - no person to be condemned unheard before title cancellation

  • Munyu Maina v Hiram Gathiha Maina
    Civil Appeal No. 239 of 2009 [2013] eKLR

    Registered proprietor must prove legality of title where root is challenged

  • Daudi Kiptugen Vs. Commissioner of Lands & 4 Others
    (2015) eKLR

    Process of acquisition of title is material; possession of lease alone insufficient

  • Katende v Haridas and Company Ltd.
    [2008] 2 E.A 173

    Elements a purchaser must prove to rely on bona fide purchaser doctrine

  • Kogo Flats Ltd v Sammy Cherunya & another
    [2019] eKLR

    Process of acquisition is as good as the end result; missing steps must be explained

  • Dina Management Limited Vs County Government of Mombasa & 5 Others
    SC Petition 8 (E010) of 2021

    Article 40 does not protect unlawfully acquired property; no bona fide purchaser protection where root of title challenged

  • Lawrence P. Mukiri Mungai, Attorney of Francis Muroki Mwaura v Attorney General & 4 others
    [2017] eKLR

    A property cannot have two valid title deeds at the same time

Jurisdiction invoked
Article 162(2)(b) of the Constitution (Environment and Land Court); jurisdiction upheld per ruling of Yano J dated 29 July 2021 invoking Article 159(2)(d)

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, "Brookshil Limited & another v County Government of Kwale & 3 others; Mwadzugwe & 2 others (Interested Parties)", Case Analysis (2023). Petition 25 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/17188/eng@2023-05-03

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