Skyview Properties Limited & another v Njoroge & 4 others (Environment & Land Case 605 of 2012) [2025] KEELC 568 (KLR)
The bottom line
#A Kenyan court ruled that apartment developers must hand over the land title to the residents' management company, including basement units, which belong to everyone.
What this practically means
#Executive summary
#Key legal issues
#Obligation to transfer reversionary interests to the management company
The Plaintiffs are contractually and statutorily obligated to transfer the reversionary interests over the two parcels to the 5th Defendant; the lease itself contained the consideration (NIL) and timeline, and the Sectional Properties Act, 2020 mandatorily applies
Clause 4(e) of the lease required the manager to purchase the reversionary interest within 60 days of registration of all leases at NIL consideration. The Plaintiffs' claim that consideration was unagreed contradicted their own pleadings admitting willingness to transfer. Since long-term sub-leases conferring ownership of apartments were issued, Section 13(2) of the Sectional Properties Act, 2020 mandatorily required conversion, reinforcing the duty to transfer and register sectional plans.
Whether the three basement units form part of the common areas
The three basement units form part of the common property of the estate to be managed by the 5th Defendant
The lease transferred the land together with 'the buildings and improvements thereon' to the manager; nothing in the lease reserved the basement units to the Plaintiffs. The units were never offered for sale, were not in the sectional plan, were intended as workers' quarters and a store, and the Plaintiffs' abandonment of them and failure to pay electricity showed they treated them as common property.
General damages for breach of agreement
General damages are not recoverable for breach of contract
Relying on Kenya Tourist Development Corporation v Sundowner Lodge Limited and Dharamshi v Karsan, the court reiterated the settled position that general damages are not allowable in claims for breach of contract, such an award amounting to duplication of quantified damages.
Costs of the suit and counter-claim
Costs follow the event; the successful Defendants are awarded costs of both the suit and the counter-claim
Under Section 27 of the Civil Procedure Act costs follow the event unless good reasons exist. Citing Mayfair Holdings v Ahmed and Ritter v Godfrey, the court held the discretion must be exercised judicially; absent special circumstances, a successful litigant receives costs.
Legal principles established
#- General damages are not recoverable in cases of alleged breach of contract
- Costs follow the event unless the court, exercising its discretion judicially, has good reasons to order otherwise
- Where a developer sells units under long-term sub-leases with a management company to hold the reversionary interest, the developer is bound to transfer the reversionary interest including all buildings and improvements at the agreed consideration (NIL)
Court orders
#- 1.The Plaintiffs' case is dismissed in its entirety
- 2.Declaration that the three basement units within L.R. No. 209/8879/9 and 209/8879/10 comprise in lease number 52787/1 constitute the common areas to be managed and administered by the 5th Defendant, Scenic Court Management Company Limited
- 3.Order directing the Plaintiffs to execute all necessary documents and transfer the reversionary interests over the two properties to the 5th Defendant within 30 days, failing which the Deputy Registrar of the court is authorized to sign and execute the necessary deed of transfer
- 4.Order directing the Plaintiffs to surrender the original title documents of the two properties to the 5th Defendant within 30 days, failing which the Chief Land Registrar shall act in accordance with Section 13 of the Sectional Properties Act, 2020
- 5.Costs of the suit and counter-claim awarded to the Defendants against the Plaintiffs
- Jurisdiction invoked
- Original civil jurisdiction of the Environment and Land Court over land parcel disputes (LR Nos. 209/8879/9 and 209/8879/10)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Skyview Properties Limited & another v Njoroge & 4 others (Environment & Land Case 605 of 2012) [2025] KEELC 568 (KLR)", Case Analysis (2025). Not stated in judgment as provided (Plaint dated 28th December 2012; amended 21st April 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/568/eng@2025-02-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.