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ELCPartially AllowedEnvironment and Land Case Civil Suit 1250 of 2014· [2023] KEELC 18460 (KLR)

Cosie Holdings Limited v Cabinet Secretary Ministry of Lands, Housing and Urban Development & 3 others

Environment and Land Court
16 March 2023
8,142 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~33 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court cancelled a land title on the Mombasa Road interchange site, ruling road reserves are public land that cannot be privately owned.

What this practically means

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Executive summary

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Cosie Holdings Limited sued the Cabinet Secretaries for Lands and Transport, the Director General of KeNHA and China Road and Bridge Corporation, seeking a permanent injunction against construction of the Mombasa Road/Likoni Road/Southern Bypass interchange on LR No 209/11802, a declaration of unlawful trespass with compensation at market value plus 15%, and exemplary damages for disobeying Majanja J's judgment in Petition No 178 of 2011. The 1st and 2nd Defendants counterclaimed, alleging the land was public utility land set aside for the interchange, fraudulently allocated and incapable of private alienation, and sought cancellation of the Plaintiff's title. The court framed four issues: legality of the Plaintiff's acquisition, entitlement to the reliefs sought, the counterclaim, and costs. It found a February 22, 2008 Ministry of Roads letter, predating the transfer, disclosed that 0.058ha was road reserve, and PW1 admitted awareness yet completed the purchase. The parcel had also been subdivided before transfer, so the Plaintiff could not have lawfully acquired the whole 0.3601ha. Applying Katende v Haridar and KeNHA v Shalien Masood Mughal, the court held the Plaintiff was not an innocent purchaser for value without notice, that the road reserve was an overriding interest, and that the prior petition judgment only addressed arbitrary revocation by Gazette Notice, not title validity. The Plaintiff's suit was dismissed with costs; the counterclaim succeeded, with declarations that the property is a public utility and the allocation irregular and tainted with fraud, and an order that the Chief Land Registrar cancel the title within ninety days.

Key legal issues

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01

Whether the Plaintiff lawfully acquired title to LR No 209/11802

Holding

No - the land was set aside for public use (road reserve/interchange) before the title issued, and the Plaintiff knew part of it was a road reserve when it purchased.

Reasoning

The court found a letter of February 22, 2008 from the Ministry of Roads, predating the transfer, disclosed that 0.058ha was road reserve. PW1 admitted awareness yet proceeded with the sale. The parcel had also been subdivided before transfer, so the Plaintiff could not have acquired the whole 0.3601ha lawfully. Title protection under Article 40(6) does not extend to unlawfully acquired property.

p. 12
02

Whether the Plaintiff is an innocent purchaser for value entitled to compensation

Holding

No - the Plaintiff failed to prove the elements of the bona fide purchaser doctrine, particularly absence of notice.

Reasoning

Applying Katende v Haridar, the court held the Plaintiff had notice of the road reserve from the 2008 letter before completing the purchase, did not produce a surveyor's report, and acquired a parcel whose acreage did not tally with survey records. It therefore could not claim compensation for compulsory acquisition.

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Whether the judgment in Petition No 178 of 2011 validated the Plaintiff's title or was disobeyed

Holding

No - that petition only dealt with the legality of revocation of titles by Gazette Notice, not the legality of the titles themselves.

Reasoning

The court perused the Majanja judgment and held it concerned the Registrar's arbitrary revocation of titles without due process; it did not determine ownership. The Registrar was merely obliged to follow due process if it wished to revoke titles. Building the road was therefore not contempt of that judgment.

p. 12
04

Whether the 1st and 2nd Defendants' counterclaim succeeds

Holding

Yes - declarations issued that the property is a public utility, the allocation was irregular and tainted with fraud, and the title to be cancelled.

Reasoning

Evidence from DW1 and DW2 established the land was planned for the interchange since 1972/1985, sat on a road reserve, and had been subdivided with a portion surrendered. The Plaintiff's title over the whole 0.3601ha could not stand; the counterclaim for cancellation was granted.

Legal principles established

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  • A road reserve is an overriding interest which need not be noted on the register and it is not open to any authority to alienate it for private development.
  • A purchaser who knows part of the land is a road reserve cannot claim protection as an innocent purchaser for value without notice.
  • Public interest in construction of a public road outweighs private interests in land set aside for that purpose.

Court orders

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  1. 1.Declaration that the suit property LR NO 209/11082 is a public utility under the custody of Ministry of Transport and Infrastructure and Kenya National Highways Authority and cannot be alienated for private use
  2. 2.Declaration that the allocation and subsequent registration of Cosie Holdings Limited as proprietor of LR NO 209/11082 was irregular and tainted with fraud
  3. 3.The Chief Land Registrar directed to cancel the title known as LR NO 209/11082 in the Plaintiff's name within ninety (90) days from the date of the judgment
  4. 4.The Plaintiff shall bear costs of the suit

Authorities

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Legislation

  • Land Acquisition ActCap 295
  • Constitution of Kenya, 2010Article 40 (including 40(6))
  • Constitution of Kenya, 2010Article 67(1)
  • Land Registration ActSections 25(1), 26, 28
  • National Land Commission ActSection 14

Cases cited (18)

  • The National Land Commission & others Ex parte Vivo Energy Kenya Ltd
    (2015) eKLR

    Plaintiff's right to property protection

  • Isaac Gathungu Wanjohi & Another v Attorney General & 6 others
    [2012] eKLR

    Protection of property rights

  • Christopher Ndarathi Murungaru v Kenya Anti Corruption Commission and Hon Attorney General
    (2006) eKLR

    Illegality of actions taken in contravention of court orders

  • Adan Abdirahani Hassan & 2 others v The Registrar of Titles, Ministry of Lands & 2 others
    [2013] eKLR

    Title is not fool proof of ownership

  • Cycad Properties Limited v The Attorney General & Others
    HC Petition No 70 of 2010

    Overriding interests including rights of compulsory acquisition

  • Republic v Registrar of Lands in Kilifi ex-parte Daniel Ricci
    Malindi HC JR No 6 of 2013 [2013] eKLR

    Land compulsorily acquired for public purpose must be used for that purpose

  • James Joram Nyaga & Another v The Hon. Attorney General
    Miscellaneous Civil Application No 1732 of 2004

    Repossession proper where due process followed

  • Shalien Masood Mughal
    Nrb ELC 302 of 2018

    Similar interchange land held public land; claim dismissed

  • Niaz Mohammed Jan Mohammed v Commissioner for Lands & 4 others
    [1966] eKLR

    Land alienated for public purpose cannot be alienated or transferred otherwise

  • Cyad Properties Ltd & Another v The Attorney General & 4 others
    (2013) eKLR

    Illegally acquired title over land set aside for road

  • Kenya Highway Authority v Shalien Masood Mughal
    Civil Appeal No 327 of 2014

    Government has overriding interest where structure plan predates the property

  • Kenya Hotels Properties Ltd v Willsden Invts Limited & 6 others
    2013 eKLR

    Public purpose of road reserve outweighs private rights

  • Katende v Haridar & Company Limited
    [2008] 2 EA 173

    Elements of the bona fide purchaser doctrine

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

    Adopting Katende bona fide purchaser test

  • Kenya National Highways Authority v Shalien Masood Mughal & 5 Others
    [2017] eKLR

    Article 40(6) limitation; road reserve is an overriding interest

  • Chemei Investments Limited v The Attorney General & Others

    Unlawful acquisition under Article 40(6) must be established through a legally established process

  • Electrical Options Limited v The Attorney General & Another
    Nairobi Petition No 23 of 2011 (unreported)

    Same proposition on Article 40(6) process

  • Power Technics Ltd v The Attorney General and Others
    Nairobi Petition No 178 of 2011

    Prior judgment on revocation of titles by Gazette Notice

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over land disputes (Environment and Land Court Act); suit filed as ELC Civil Suit 1250 of 2014

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, "Cosie Holdings Limited v Cabinet Secretary Ministry of Lands, Housing and Urban Development & 3 others", Case Analysis (2023). Environment and Land Case Civil Suit 1250 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/18460/eng@2023-03-16

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