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ELCPartially AllowedNairobi ELC Case No. 813 of 2015 (lead file), consolidated with Nairobi ELC Case No. 557 of 2016· [2025] KEELC 547 (KLR)

Kariuki & 2 others (Suing as Registered Trustees of Deliverance Church) v New Age Deverlopers Construction Co Ltd & 8 others (Environment & Land Case 813 of 2015 & 557 of 2016 (Consolidated)) [2025] KEELC 547 (KLR)

Environment and Land Court of Kenya
6 February 2025
11,622 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~46 min to read original · ~4 min brief

The bottom line

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A Kenyan land buyer who paid most of the purchase price won back 29 acres after the court declared the rival titles and bank charge invalid.

What this practically means

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Executive summary

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This consolidated judgment of the Environment and Land Court (E. K. Wabwoto, J) determines two suits, Nairobi ELC No. 813 of 2015 (the lead file) by the Registered Trustees of Deliverance Church and Nairobi ELC No. 557 of 2016 by Baliga Limited, against New Age Developers Construction Company Ltd, Samuel Cege Kibunja, the Land Registrar Thika and Chase Bank (now SBM Bank). The Plaintiffs claimed ownership of 29 acres at Ndarugo, having contracted on 11th September 2008 to purchase from Baliga Limited for Kshs. 13,775,000/=, only for the 1st and 2nd Defendants to encroach in 2015 armed with titles derived from a doubtful subdivision of Juja/Komo/block 1/30 into 1/3079 and 1/3080, and a charge registered over 1/3080 in favour of the 4th Defendant. The court framed six issues and held: (i) the Church had locus standi and a justifiable cause of action having paid the bulk of the purchase price; (ii) the 1st and 2nd Defendants' titles were invalid, as no evidence traced their acquisition from any lawful root; (iii) the charge was invalid, the bank having failed to conduct due diligence and there being no valid title underlying it; and (iv) the Counterclaim of Kshs. 30,011,508/= special damages was dismissed as unproven. Judgment was entered declaring the Plaintiffs owners of the suit parcels, nullifying the subdivision and the charge, issuing permanent and mandatory injunctions, and directing the Land Registrar to process provisional titles for transfer to the Church. Costs were awarded to the Plaintiffs against the 1st, 2nd and 4th Defendants.

Key legal issues

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01

Locus standi of the Church trustees

Holding

The Church had locus standi and a justifiable cause of action having entered into a sale agreement, paid the bulk of the purchase price and not obtained completion due to the vendor's lost titles and the Defendants' intrusion.

Reasoning

The court defined cause of action by reference to Read v Brown, Letang v Cooper and the Court of Appeal in Attorney General v Andrew Maina Githinji, and found the Church had demonstrated its stake: a sale agreement dated 11th September 2008, payment of Kshs. 6,500,000 deposit and Kshs. 7,275,000 leaving Kshs. 500,000, with completion thwarted by lost title documents and the Defendants' claim to the land.

p. 16
02

Validity of the 1st and 2nd Defendants' titles to LR Juja/Komo/block 1/3079 and 1/3080

Holding

The titles were invalid; the Defendants failed to demonstrate a lawful root of title.

Reasoning

The court traced the root of the suit land to Mumo Estates Limited, which subdivided it into 94 portions, with Baliga Limited registered over block 1/30. The Defendants were not listed among the shareholders/allottees, produced no sale agreement, transfers, consents or evidence of consideration, and the 1st Defendant admitted no due diligence. Section 26 of the Land Registration Act allows challenge on grounds of fraud or irregular acquisition.

p. 19
03

Validity of the 4th Defendant's charge over block 1/3080

Holding

The charge was not validly registered and remains invalid.

Reasoning

The bank did not verify the directors or signatories of the borrower, obtained no guarantees, produced an incomplete offer letter, and led no evidence of valuation, pre-search, disbursement or receipt of funds. Since the 1st Defendant's title itself was invalid, there was no valid title to support the charge.

p. 20
04

The 1st and 2nd Defendants' Counterclaim

Holding

The Counterclaim was not merited and was dismissed; special damages of Kshs. 30,011,508/= were not strictly proved.

Reasoning

A counterclaim must be proved like a suit. The court held that holders of unlawfully obtained titles cannot found a counterclaim, and no receipts or documents were produced for any of the claimed expenditures, so special damages were not proved.

p. 21

Legal principles established

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  • Where two or more competing titles over the same land are claimed, the court must investigate the root of title; a title must conform to procedure and trace its root without a break in the chain.
  • A registered proprietor must go beyond the title instrument and prove the legality of the acquisition; indefeasibility under Section 26 of the Land Registration Act does not protect titles acquired through fraud, illegality or irregularity.
  • Special damages must be specially pleaded and strictly proved; failure to produce receipts defeats the claim.
  • A party challenging a duly registered charge bears a substantial onus, but the charge fails where the bank failed to do due diligence and the borrower held no valid title.

Court orders

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  1. 1.A declaration that properties known as Juja/Komo block 1/30, block 1/31 to 1/40, block 1/3079 and block 1/3080 all measuring 29 acres situate at Ndarugu within the County of Kiambu belongs to the Plaintiffs
  2. 2.A permanent injunction restraining the Defendants jointly or individually, or through agents, from encroaching onto, trespassing, constructing, selling, offering for sale, transferring, wasting, taking possession of, alienating or disposing of the suit properties
  3. 3.A mandatory injunction directing the 3rd Defendant to avail the registers for the suit land parcels to facilitate transfer to the Registered Trustees of Deliverance Church
  4. 4.A declaration that the subdivision of Juja/Komo/block 1/30 into Juja/Komo/block 1/3079 and 1/3080 was unlawful, illegal, null and void
  5. 5.An order directing the 3rd Defendant to process provisional title deeds for LR Juja/Komo/block 1/30 to facilitate transfer to the Registered Trustees of Deliverance Church
  6. 6.A declaration that the registration of the charge on 28th May 2015 in favour of the 4th Defendant over Juja/Komo block 1/3080 was unlawful, illegal, null and void and the same be reversed and discharged forthwith
  7. 7.The 1st and 2nd Defendants' Counterclaim dated 2nd October 2017 dismissed
  8. 8.Costs of the suit and Counterclaim awarded to the Plaintiffs, payable by the 1st, 2nd and 4th Defendants

Authorities

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Legislation

  • Constitution of KenyaArticle 40
  • Evidence ActSections 107(1), 109, 112, 116
  • Land Registration ActSections 26(1), 56
  • Land ActSections 90, 82, 83, 87
  • Civil Procedure ActSection 27
  • Limitation of Actions Actpleaded by Defendants
  • Land Control Actconsent requirement
  • Kenya Depositors Insurance ActSection 25
  • Insolvency ActSection 432(2)

Cases cited (24)

  • Elizabeth Wambui Githinji & 29 Others =Versus= Kenya Urban Roads Authority & 4 Others
    (2019) eKLR
  • Margaret Njoki Kamau =Versus= Reuben Ndiro Mwangi
    (2021) eKLR
  • Dina Management Limited =Versus= County Government of Mombasa & 5 Others
    (2023) eKLR
  • Ngugi =Versus= Kamau & Another
    (Environment Land Case No. 36 of 2020) (2022) KEELC 2261 (KLR)
  • Daniel Kipruto Motto =Versus= Chase Bank (Kenya) Limited
    (2018) eKLR
  • Ruth Wanja Mwangi =Versus= Samuel Mwaura Njuguna
    (2017) eKLR
  • J.M.K =Versus= M.W.M & Another
    (2015) eKLR
  • Benja Properties Limited =Versus= Syenda Mohamed Burhamudin Sahed & 4 Others
    (2015) eKLR
  • Samuel Kaimere =Versus= Land Registrar
    (2015) eKLR
  • Kimani Njeri & 3 Others
    (Environment and Land Case No. 10 of 2022) (2023)
  • Attorney General & another v Andrew Maina Githinji & Another
    [2016] eKLR
  • Drummond Jackson vs Britain Medical Association
    (1970) 2 WLR 688
  • Read vs Brown
    (1889) 22 QBD 128
  • Letang vs Cooper
    [1964] 2 All ER 929
  • Anne Wambui Ndiritu –vs- Joseph Kiprono Ropkoi & Another
    [2005] 1 EA 334
  • Hubert L. Martin & 2 Others vs Margaret J. Kamar & 5 Others
    [2016] eKLR
  • Milankumar Shah & 2 others v The City Council of Nairobi & another
    Nairobi High Court Civil Suit No. 1024 of 2005 (O.S)
  • Munyu Maina vs Hiram Gathiha Maina
    (Supra)
  • Funzi Development Ltd & Others vs County Council of Kwale
    [2014] eKLR
  • Jacob Wekesa Bokoko Balongo vs. Kincho Olokio Adeya & another
    [2020] eKLR
  • Fahiye & 2 others – v- Omar & 4 others
    [201] 2 KLR 224
  • Champaklal Ramji Shah & 3 Anors –v- AG & Anor
    HCCC No. 145 of 1997
  • Equip Agencies Ltd =Versus= I&M Bank Ltd
    (2017) eKLR
  • Coast Brick Tiles & Tiles =Versus= Premchand & Another
    (1964) EA 187
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court under Article 162(2) of the Constitution (land and environment disputes)

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, "Kariuki & 2 others (Suing as Registered Trustees of Deliverance Church) v New Age Deverlopers Construction Co Ltd & 8 others (Environment & Land Case 813 of 2015 & 557 of 2016 (Consolidated)) [2025] KEELC 547 (KLR)", Case Analysis (2025). Nairobi ELC Case No. 813 of 2015 (lead file), consolidated with Nairobi ELC Case No. 557 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/547/eng@2025-02-06

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