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ELCPartially AllowedMurang'a CMC ELC No. 22 of 2019 (Appeal)· [2025] KEELC 4007 (KLR)

Mbugua (Suing on His Behalf and as Administrator of the Estate of the Late George Mbugua Mungai) v Kabue & 2 others (Environment and Land Appeal E017 of 2024) [2025] KEELC 4007 (KLR)

Environment and Land Court
26 May 2025
2,028 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan land buyer who paid Kshs 2 million won a refund, 10% damages and interest after the seller refused to transfer the land.

What this practically means

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Executive summary

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This is a first appeal to the Environment and Land Court at Murang'a from the judgment of the Chief Magistrate dated 28 March 2024 in Murang'a CMC ELC No. 22 of 2019. The Plaintiffs bought L.R. Loc.5/Kagunduini/2492 and 2495 from the 1st Defendant for Kshs. 2 Million under an agreement dated 6 February 2019, paying Kshs. 1,781,000 to Unaitas Sacco and Kshs. 219,000 to the vendor. The 1st Defendant refused to transfer. The trial court ordered refund of the price with interest and costs, having found the sale agreement void ab initio and general damages unavailable under a void contract. Gicheru J allowed the appeal in part. He held the agreement was not void: the plea that Unaitas had not discharged the land was never pleaded or proved, and for a contract to be void there must be illegality or incapacity, neither shown; the 1st Respondent was in breach. The court corrected the trial court's reading of KTDC v Sundowner Lodge: general damages are excluded only where liquidated damages are recoverable; clause 16.2(a) liquidated damages at 10% of the purchase price, so the Plaintiffs were awarded the 10% liquidated damages plus refund and interest from 6 February 2019. Specific performance, completion documents, transfer, vacant possession, registration and injunction were refused for lack of proof the land was rare and unique, hardship from the family's overriding interests, and the agreement's Section 28 rider. The trial court's decision was otherwise upheld, with costs of the appeal and the lower court suit to the Plaintiffs and other Defendants against the 1st Defendant.

Key legal issues

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01

Whether the sale agreement was void ab initio

Holding

No; the agreement was not void, and the 1st Respondent, who never pleaded it, was in breach

Reasoning

For a contract to be void it must be illegal by statute or common law or a party incapacitated by law; none was shown. The plea that Unaitas Sacco had not discharged the land was never raised in the defence nor proved by evidence. The Plaintiffs performed their part by paying the full purchase price, so the 1st Respondent was in breach.

p. 3
02

Whether the Plaintiffs were entitled to damages

Holding

They were entitled to the contractually agreed liquidated damages of 10% of the purchase price plus refund, but not general damages

Reasoning

Clause 16.2(a) liquidated the damages at 10% of the purchase price, with refund of all monies paid. The trial court misread KTDC v Sundowner Lodge: that case bars general damages only where liquidated damages are recoverable. No duplication arises as recovery is on one head only.

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Whether specific performance should be ordered

Holding

No; the trial magistrate was right to refuse it

Reasoning

Specific performance is equitable and discretionary, requiring proof the land is rare and unique and damages inadequate. The family's overriding interests, preserved by the agreement's rider referencing Section 28 of the Land Registration Act, would cause hardship to the Defendant. Had the parties intended specific performance they would have stipulated it.

p. 4

Legal principles established

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  • A party alleging that a contract is void must plead and prove it; it was wrong to find a sale agreement void merely because a chargee had not discharged the land
  • On a first appeal the court reconsiders and re-evaluates the evidence and draws its own conclusions, making allowance for not having seen or heard the witnesses
  • General damages are not recoverable in contract where liquidated damages are also recoverable, to avoid duplication
  • Specific performance is discretionary and granted only where damages are inadequate and the land itself, not its value, is desired

Court orders

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  1. 1.The 1st Defendant to refund the purchase price of Kshs. 2 Million to the Plaintiffs
  2. 2.The 1st Defendant to pay interest to the Plaintiffs on the Kshs. 2 Million with effect from 6-2-2019 to the date of full refund at court rates
  3. 3.The 1st Defendant to pay the Plaintiffs liquidated damages of 10% together with interest thereon at court rates from 6-2-2019 to the date of full refund
  4. 4.The 1st Defendant to pay the costs of this appeal and the lower court suit to the Plaintiffs and other Defendants together with interest thereon at Court rates from the date of judgment in the lower court
On appeal from
Chief Magistrate's Court, Murang'a
Murang'a CMC ELC No. 22 of 2019
Jurisdiction invoked
First appellate jurisdiction over the Chief Magistrate's Court (Environment and Land Court)

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, "Mbugua (Suing on His Behalf and as Administrator of the Estate of the Late George Mbugua Mungai) v Kabue & 2 others (Environment and Land Appeal E017 of 2024) [2025] KEELC 4007 (KLR)", Case Analysis (2025). Murang'a CMC ELC No. 22 of 2019 (Appeal). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4007/eng@2025-05-26

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