International Kenya (II) Limited v Land Registrar Nakuru County (Environment and Land Miscellaneous Application E014 of 2023) [2024] KEELC 678 (KLR)
The bottom line
#A Kenyan bank lost its bid to register auction-bought land because it never got the court's permission before buying the property itself.
What this practically means
#Executive summary
#Key legal issues
#Whether the chargee's purchase of the suit property at public auction complied with Section 100 of the Land Act
The sale did not comply with Section 100 because the applicant, a chargee, did not seek the leave of the court before bidding for and purchasing the suit property
Section 100(1) permits a chargee exercising statutory power of sale to purchase the property only with leave of the court, save for the public-auction scenario in subsection (3). Relying on Ecobank Kenya Limited v First Choice Mega Stores Limited, the court held that a chargee can only purchase charged property with leave of court. It was evident the applicant never sought such leave before bidding on 11th February 2021, so the sale was statutorily defective and the Registrar could not be compelled to register the transfer.
Whether the respondent Registrar could be directed to register the transfer in favour of the applicant
The Registrar could not be compelled to register until the requirements of Section 100 were met
Under Section 100(4), the Registrar may require a chargee purchasing charged land to provide evidence of compliance with the section before registration. The respondent had stated he could not effect the transfer unless evidence was provided that the sale met the provisions of the law. Since the court found the sale itself non-compliant for want of leave, the application seeking directions to register and execute transfer documents failed.
Legal principles established
#- A chargee may bid for and purchase charged land at a public auction under Section 100(3) of the Land Act, but a chargee purchasing charged property otherwise than under Section 100(3) may only do so with the leave of the court
- A sale of charged land to the chargee that does not comply with Section 100 of the Land Act cannot found a compulsion on the Registrar to register the transfer
Court orders
#- 1.The application dated 21st August 2023 is dismissed for failure to seek the leave of the court as per Section 100 of the Land Act
- Jurisdiction invoked
- Original civil jurisdiction over the Notice of Motion; statutory framework of Sections 97 and 100 of the Land Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "International Kenya (II) Limited v Land Registrar Nakuru County (Environment and Land Miscellaneous Application E014 of 2023) [2024] KEELC 678 (KLR)", Case Analysis (2024). Notice of Motion dated 21st August 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/678/eng@2024-02-15
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.