Kisemei v Mercbima International Limited & 2 others (Environment and Land Case 2 of 2023) [2025] KEELC 4687 (KLR)
The bottom line
#A Kenyan landowner won Kshs 1 million in damages after a company used his title deeds as loan security without his knowledge or consent.
What this practically means
#Executive summary
#Key legal issues
#Whether the plaintiff proved that the defendants deposited his title deeds as security for a loan without his knowledge or consent
Proved on a balance of probabilities; the plaintiff's case was uncontroverted as the defendants did not participate in the hearing despite service
The plaintiff surrendered the titles to the 2nd Defendant for the limited purpose of showing the bank the quarry site. An unsigned charge produced in evidence showed an attempt to encumber the suit properties as security for a loan to the 1st Defendant without the plaintiff's knowledge or consent. With the 1st and 2nd Defendants absent despite service, the case stood uncontroverted and was proved on a balance of probabilities.
Whether the plaintiff's proprietorship and right to quiet possession entitled him to a permanent injunction
Yes; no challenge was raised to the plaintiff's title under Section 26 of the Land Registration Act, so his rights under Sections 24(a) and 25(1) entitled him to the permanent injunction
Sections 24(a) and 25(1) of the Land Registration Act vest absolute ownership in the registered proprietor free from other interests and claims. No challenge to proprietorship under Section 26 having been raised, the plaintiff enjoys exclusive rights including quiet possession to the exclusion of the defendants, making the permanent injunction merited.
Whether the plaintiff was entitled to general damages
Yes; awarded Kshs. 1,000,000/= as adequate compensation for deprivation of the titles for over five years
The defendants held the plaintiff's title deeds for more than five years without justification, preventing him from disposing of the properties and exposing him to psychological and emotional distress and ridicule. The court, exercising discretion guided by authority, awarded Kshs. 1,000,000/= as adequate compensation.
The defendants' counterclaim for specific performance and refund of deposit
Failed; the 1st and 2nd Defendants did not attend the hearing despite service, leaving their counterclaim unproven
Although the defendants filed a statement of defence and counterclaim seeking specific performance of a sale agreement and refund of Kshs. 3,100,000/=, they neglected to attend the hearing despite service, and their case was marked closed. Their counterclaim therefore stood unproven against the plaintiff's uncontroverted testimony.
Legal principles established
#- A permanent injunction is granted upon the merits after hearing of the suit and fully determines the rights of the parties
- Registration of a person as proprietor of land vests absolute ownership in that person under the Land Registration Act, 2012
- General damages are an exercise of judicial discretion based on the evidence
Court orders
#- 1.A declaration that the Plaintiff is not a guarantor in favour of the 1st Defendant in consideration for a loan facility extended by the 3rd Defendant to the 1st Defendant
- 2.A declaration that the exercise of lien over the Plaintiff's original title documents over L.R. No. Kajiado/Kitengela/46021 and L.R. No. Kajiado/Kitengela/46022 is illegal, null and void
- 3.General damages of Kshs.1,000,000/=
- 4.Costs of the suit and interest
- Jurisdiction invoked
- Original jurisdiction under the Environment and Land Court Act over disputes relating to land situate at Kajiado/Kitengela
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kisemei v Mercbima International Limited & 2 others (Environment and Land Case 2 of 2023) [2025] KEELC 4687 (KLR)", Case Analysis (2025). ELC Case (formerly ELCC No. 1023 of 2015, Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4687/eng@2025-06-16
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.