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ELCPartially Allowed· [2024] KEELC 3544 (KLR)

Kabugi v Mwaura & 2 others (Environment & Land Case E144 of 2022) [2024] KEELC 3544 (KLR)

Environment and Land Court
30 April 2024
2,393 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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In this first-instance Environment and Land Court suit at Nairobi, the Plaintiff sued three Defendants for specific performance of an agreement for sale of 5 acres carved out of L.R. No. 9363/25, the subject land having been registered in the name of the deceased, Erastus Mwaura Kiongi, whose estate the Defendants represented under an unconfirmed grant of letters of administration. The Plaintiff had paid Kshs 11,950,000/= of the Kshs 13,500,000/= purchase price. The Defendants did not enter appearance or file a defence, and the suit proceeded by formal proof. The court framed four issues: validity and enforceability of the agreement, availability of specific performance, availability of alternative reliefs, and costs. Holding that under Sections 55 and 82(b)(ii) of the Law of Succession Act administrators cannot sell immovable estate property before confirmation of grant, the court found the Defendants lacked capacity, rendering the agreement null and void in the sense explained in Macfoy v United Africa Company Ltd. Specific performance and the permanent injunction were therefore refused, as was the alternative claim for loss of bargain of Kshs 128,050,000/=. However, invoking restitution to prevent unjust enrichment, the court entered judgment against the Defendants personally, jointly and severally for Kshs 11,950,000/= with interest at court rates from filing, expressly excluding the estate from liability. The claim for unspecified valuation fees failed for want of pleading and proof. Costs were awarded to the Plaintiff personally against the Defendants with interest from assessment. Judgment dated 30th April 2024, delivered virtually by M.D. Mwangi, J.

Key legal issues

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01

Validity of an agreement for sale of estate land executed before confirmation of grant

Holding

The agreement was null and void as the Defendants, holding only an unconfirmed grant, lacked capacity to sell the estate land

Reasoning

The vendors purported to sell 5 acres of L.R. No. 9363/25 as personal representatives of the deceased under a grant of letters of administration that had not been confirmed. Section 82(b)(ii) and Section 55 of the Law of Succession Act prohibit sale of immovable estate property before confirmation. The court, adopting Gikonyo J and Odunga J, found the agreement vitiated in law and a nullity that requires no court order to set aside.

p. 3
02

Availability of specific performance

Holding

Specific performance was unavailable because it presupposes a valid enforceable contract, which was absent

Reasoning

Relying on Maraga J in Reliance Electrical Engineers Ltd v Mantrac Kenya Ltd, the court held that the jurisdiction to order specific performance rests on the existence of a valid enforceable contract, and it will not be granted where the contract suffers from a defect such as illegality making it invalid or unenforceable. Having found the agreement null and void, the remedy fell away automatically.

p. 4
03

Refund of monies paid under the void agreement

Holding

The Defendants were ordered to refund Kshs 11,950,000/= personally, jointly and severally on grounds of unjust enrichment

Reasoning

With no valid agreement, loss of bargain was unavailable, but the plaintiff proved payment of Kshs 11,950,000/= to the Defendants. Following Chase International Investment Corporation and Samuel Kamau Macharia, restitution lies where it would be unjust to allow a party to retain the benefit. Since the Defendants lacked capacity to bind the estate, liability was imposed on them personally, jointly and severally, not on the estate.

p. 5

Legal principles established

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  • Administrators of a deceased's estate have no capacity to sell immovable property of the estate before confirmation of grant; any such sale is null and void
  • Specific performance will not be ordered where the contract is invalid or unenforceable
  • A void act is a nullity requiring no court order to set aside
  • Restitution lies to prevent unjust enrichment where a party retains benefits received under an invalid agreement

Court orders

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  1. 1.Judgment entered in favour of the Plaintiff against the Defendants personally, jointly and severally for Kshs 11,950,000/= with interest at Court rates from the date of filing of the suit until payment in full
  2. 2.Costs of the suit awarded to the Plaintiff against the Defendants personally, jointly and severally, with interest at Court rates from the date of assessment until payment in full

Authorities

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Legislation

  • Law of Succession ActSection 82(b)(ii)
  • Law of Succession ActSection 55

Cases cited (8)

  • In the Estate of Isaac Kaburu Marete (deceased)
    2017 eKLR
  • In the matter of the Estate of M'Ajogi M'Ikuingu alias Kiungu Ajogi (deceased)
  • In the Estate of Reuben Mutuku Kiva (deceased)
    [2021] eKLR
  • MKM & 3 others -vs- BNM
    [2016] eKLR
  • Macfoy -vs- United Africa Company Ltd
    (1961) 3 ALL ER 1169
  • Reliance Electrical Engineers Ltd –vs- Mantrac Kenya Ltd
  • Chase International Investment Corporation and another -vs- Laxman Keshra & others
    [1978] KLR 143
  • Samuel Kamau Macharia -vs- Kenya Commercial Bank Ltd, Kenya Commercial Finance Company Ltd
    [2003] eKLR
Jurisdiction invoked
First-instance suit under the Environment and Land Court's jurisdiction over agreements for sale of land (no specific provision cited in the judgment)

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, "Kabugi v Mwaura & 2 others (Environment & Land Case E144 of 2022) [2024] KEELC 3544 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/3544/eng@2024-04-30

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