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ELCAllowedEnvironment and Land Case Civil Suit E411 of 2021· [2023] KEELC 21380 (KLR)

Kyambi (Suing as the Administrator and Legal Representative of the Estate of the Late Mueke Kyambi Alias Lydiah Mueke Kyambi - Deceased) v Olero & 6 others

Environment and Land Court
26 October 2023
8,172 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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A Nairobi court cancelled a fraudulent land transfer and sub-division, restoring the deceased owner's title because buyers failed to do proper due diligence.

What this practically means

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Executive summary

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The plaintiff, administrator of the estate of the late Mueke Kyambi alias Lydia Mueke Kyambi, sued seven defendants over Title No. Nairobi/Block 118/839, allocated to the deceased under a 1993 sub-division scheme. He sought declarations that the transfer of the property to the 1st defendant and its sub-division into six parcels, and the subsequent transfers to the 2nd, 3rd, 4th and 5th defendants, were fraudulent and null and void; cancellation of the resultant Certificates of Lease and reinstatement of the deceased's title; issuance of the original Certificate of Lease; and mandatory and permanent injunctions. The plaintiff alleged the 1st defendant forged an identity card bearing a different ID number, birth date and location to effect the transfer. The 1st defendant claimed he bought the land from one Rose Munanye Kanitha, but the sale agreements were expunged under Section 35 of the Evidence Act as their makers were not called. The court framed two issues: whether the plaintiff transferred the title to the 1st defendant, and whether the 2nd and 3rd defendants were bona fide purchasers for value. Applying Section 3(3) of the Law of Contract Act, the court found no written contract of sale existed and the plaintiff did not transfer the property. The 2nd and 3rd defendants, who never saw any title document and did no due diligence at the Ministry of Lands, failed the bona fide purchaser test under the Land Registration Act. Judgment was entered for the plaintiff as prayed, with all defendants bearing the costs.

Key legal issues

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01

Whether the plaintiff transferred the title to the 1st defendant

Holding

No valid transfer existed; there was no written contract of sale complying with Section 3(3) of the Law of Contract Act, and the sale agreements relied on by the 1st defendant were expunged as their makers were not called.

Reasoning

The 1st defendant never met the late registered owner; the identity card used in the transfer bore a different ID number, birth date and location. The sale agreement with Rose Munanye Kanitha and the transfer could not be produced because the makers were unavailable. The stamp duty receipt bore the 1st defendant's name and Mutheu & Co. Advocates, contradicting his account. The court found no contract between the parties and held the plaintiff did not transfer the property.

p. 11
02

Whether the 2nd and 3rd defendants are bona fide purchasers for value

Holding

They were not; they never saw any document of title from the 1st defendant, produced no sale agreement, and did not carry out due diligence at the Ministry of Lands.

Reasoning

DW2 admitted he never saw any title document from the 1st defendant and did not know why the 1st defendant sold him land that did not belong to him. Due diligence was done only at Drumvale Company, not the Ministry of Lands. Following Katende, Samuel Kamere and Richard Odual Opole, a purchaser must prove valid title, good faith, no knowledge of fraud and valuable consideration; these elements were not proved, so their certificates of title were obtained unlawfully.

03

Fraud against the 6th defendant (Registrar of Lands)

Holding

Fraud against the 6th defendant required particularised, watertight evidence, but the court nonetheless found the 6th defendant issued the 2nd and 3rd defendants' certificates of title illegally.

Reasoning

The court cited Kuria Kiarie for the heightened standard of proof in fraud and noted the plaintiff did not place evidence linking the 6th defendant to fraud. Yet it proceeded to find the certificates of title of the 2nd and 3rd defendants were obtained unlawfully and that the 6th defendant, being the issuer, did so illegally - a finding in tension with the stated evidentiary deficiency.

Legal principles established

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  • No suit may be brought upon a contract for the disposition of an interest in land unless the contract is in writing, signed by all parties and attested by a witness (Section 3(3) of the Law of Contract Act).
  • A bona fide purchaser for value must prove a valid and legal title, due diligence to determine the lawful owner, and payment of valuable consideration.
  • Where a tainted and irregular procedure leads to registration of title, one cannot be a bona fide purchaser for value without notice.

Court orders

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  1. 1.A declaration that the purported transfer of Title No. Nairobi/Block 118/839 into the name of the 1st Defendant and the subsequent sub-division into six resultant parcels was fraudulent, illegal, null and void for all purposes
  2. 2.A declaration that the purported sale or transfer of any of the six parcels, particularly to the 5th Defendant or any other party, is null and void and of no effect
  3. 3.An order directing the 6th Defendant to cancel the Certificates of Lease arising out of the sub-division and rectify the Registers so as to reinstate and/or register the Late Mueke Kyambi Alias Lydiah Mueke Kyambi as proprietor of Title No. Nairobi/Block 118/839
  4. 4.An order directing the 6th Defendant to issue to the Plaintiff the original Certificate of Lease for Title No. Nairobi/Block 118/839 in the name of the Late Mueke Kyambi Alias Lydia Mueke Kyambi
  5. 5.A mandatory injunction compelling the 1st, 2nd, 3rd, 4th & 5th Defendants to demolish and remove all structures on the suit land and issue vacant possession to the Plaintiff
  6. 6.A permanent injunction restraining the 1st, 2nd, 3rd, 4th & 5th Defendants and those claiming under them from interfering with the Plaintiff's use and possession of the suit property
  7. 7.The defendants to meet the costs of the suit

Authorities

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Legislation

  • Law of Contract Act, CAP 23 Laws of KenyaSection 3(3)
  • Land Registration ActSection 26(1)
  • Land Registration ActSection 80(2)
  • Land Registration ActSection 81
  • Evidence ActSection 35

Cases cited (21)

  • Daudi Ledama Morintant vs Mary Christine Kiarie & 2 Others
    [2017] eKLR
  • M.A. Koinange vs Joyce Gachulau & 2 Others
    [2015] eKLR
  • David Wahome Gitonga vs Mary Nyakio Kanini & 3 Others
    [2020] eKLR
  • Francis Raphael Ambeko Nyagambi vs Anjeline Moraa Amukoye
    [2021] eKLR
  • Githinga Kihutha vs Caroline Nduku
    ELCA No. 16 of 2007
  • Denis Noel Mukhulo Ochwala & Another vs Elizabeth Murungari Njoroge & Another
    [2018] eKLR
  • Urmilla w/o Mahendra vs Barclays Bank International Ltd & Another
    [1976-80] 1 KLR 116B
  • Elijah Makeri Nyangwara vs Stephen Mungai Njuguna & Another
    Eldoret ELC Case No. 609 B of 2012
  • Kuria Kiarie & 2 Others vs Sammy Magera
    [2018] eKLR

    Fraud must be specifically pleaded and particularised and proved to a standard above balance of probabilities.

  • Kinyanjui Kamau vs George Kamau
    [2015] eKLR
  • Serah Njeri Mwobi vs John Kimani Njoroge
    [2013] eKLR
  • Nguruma Limited vs Jan Blonde Nielsen & 2 Others
    CA No. 77 of 2012, [2014] eKLR
  • Safaris Inns Limited & 2 Others vs Deutsche Investitions UND Entwicklungsgesellschaft ('Deg') & Others
    Kisii Civil Appeal 72 of 2008, [2011] eKLR
  • Ali Abid Mohammed vs Kenya Shell & Co. Ltd
    (2017) eKLR
  • Ashit Patani & 2 Others
    Civil Appeal 316 of 2014, [2017] eKLR
  • Ndege Kabibi Kimanga & Another vs Kanya Gachiani & 12 Others
    (2016)
  • Ndolo vs Ndolo
    (2018) 1 KLR (G&F) 742
  • Patrick Tarzan Matu & Another vs Nassim Shariff Abdulla & 2 Others
    [2009] eKLR

    Contract in contravention of Section 3(3) of the Law of Contract Act cannot found a claim; the foundation of the claim is untenable.

  • Elizabeth Githinji & 20 Others v Kenya Urban Roads Authority & Others
    2019 eKLR

    A bona fide purchaser is not bound by interests of which he had no actual, constructive or imputed notice, provided reasonable due diligence was done.

  • Richard Odual Opole vs Commissioner of Lands & 2 Others
    (2015) eKLR

    Where a tainted and irregular procedure leads to registration of title, one cannot be a bona fide purchaser for value without notice.

  • Samuel Kamere vs Land Registrar
    (2015) EKLR

    A bona fide purchaser must prove valid legal title, due diligence and payment of valuable consideration.

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over disputes relating to title to land (Article 162(2)(b) of the Constitution; 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, "Kyambi (Suing as the Administrator and Legal Representative of the Estate of the Late Mueke Kyambi Alias Lydiah Mueke Kyambi - Deceased) v Olero & 6 others", Case Analysis (2023). Environment and Land Case Civil Suit E411 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21380/eng@2023-10-26

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