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ELCPartially Allowed· [2025] KEELC 4689 (KLR)

Njuguna v Nyakinyua Investment Co Ltd (Environment & Land Case 55 ‘B of 2022) [2025] KEELC 4689 (KLR)

Environment and Land Court
18 June 2025
4,027 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~16 min to read original · ~4 min brief

The bottom line

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A Kenyan buyer without written contract or Land Control Board consent still won back his KShs 550,000, but lost the land itself for lack of proof.

What this practically means

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Executive summary

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The Plaintiff sued the Defendant, a land-owning entity, claiming he purchased Plots 76 and 77 in 2006 to be excised from Ruiru/Mugutha Block 1/5463 at Kshs 550,000 each, paying Kshs 1,100,000 in total into the Defendant's advocates' account. He took possession, built a house and cultivated crops. Plot 76 (Ruiru/Mugutha Block 1/6118) was transferred in 2011, but the Defendant refused to transfer Plot 77 (Ruiru/Mugutha Block 1/6119). He sought a declaration of ownership, an injunction, a refund in the alternative, damages and costs. The Defendant denied selling him two plots, asserting the Kshs 1,100,000 was the price of one plot and that no written agreement existed. The court framed five issues. It found the sale was oral and non-compliant with section 3(3) of the Law of Contract Act, but observed it would have declared a constructive trust had it been pleaded, applying the Macharia Mwangi Maina decision. However, the Plaintiff failed to prove Plot 77 was the same as Ruiru/Mugutha Block 1/6119, having tendered no mutation form or subdivision plan linking the receipts to the parcel, so the declaratory and injunctive reliefs failed. The court found the land was agricultural and the transaction void for want of Land Control Board consent under section 6 of the Land Control Act, but under section 7 the purchase price is recoverable as a debt, reinforced by the doctrine of unjust enrichment. Crediting the receipts bearing Plots 76 and 77 and disbelieving DW1, the court found the Plaintiff paid for two plots. Judgment was entered for the Plaintiff: refund of Kshs 550,000 with interest at court rates from filing until payment in full, and costs of the suit borne by the Defendant.

Key legal issues

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01

Validity of the oral agreement for the sale of Plot No. 77

Holding

The agreement was oral and thus non-compliant with section 3(3) of the Law of Contract Act, but the court was inclined to find a constructive trust had it been pleaded

Reasoning

DW1 admitted the Defendant's practice was to sell plots without written agreements, purchasers paying the price into the advocates' account and receiving receipts. Although section 3(3) requires writing, the court noted that constructive trust can override this, citing the Macharia Mwangi Maina case, but the Plaintiff did not plead constructive trust, and identification of the suit property posed a difficulty anyway.

02

Identification of Plot No. 77 as Ruiru/Mugutha Block 1/6119

Holding

Not proved; the Plaintiff failed to discharge the burden of proof

Reasoning

The Plaintiff produced receipts referencing Plots 76 and 77, a registration receipt, a caution and a demand letter, but did not tender mutation forms or a subdivision plan connecting Plot 77 to the new parcel number. On sections 107 and 108 of the Evidence Act, he who asserts must prove, and without primary documents the nexus to Ruiru/Mugutha Block 1/6119 was not established.

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Effect of lack of Land Control Board consent

Holding

The transaction over the agricultural land was void for want of consent, but the purchase price is recoverable under section 7 of the Land Control Act

Reasoning

Section 6 of the Land Control Act voids dealings in agricultural land within a land control area absent Board consent, and no exemption applied. Section 7 permits recovery of money paid under such a void transaction as a debt. Equitable principles and unjust enrichment reinforce the refund of Kshs. 550,000 for Plot 77.

p. 7
04

Whether the Plaintiff paid for one plot or two

Holding

The court found the Plaintiff paid for two plots; DW1 was not a truthful witness

Reasoning

The receipts produced bore Plots Nos. 76 and 77, DW1 could not explain this nor identify which plot was paid for, and the Defendant had put the Plaintiff in possession of both plots pending transfer. The court therefore found payment of Kshs. 1,100,000 covered both plots despite the Defendant's assertion that the price was Kshs. 1,100,000 per plot.

p. 7

Legal principles established

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  • Despite the absence of a written contract under section 3(3) of the Law of Contract Act, a constructive trust may arise where a vendor has been paid the full purchase price, put the purchaser in possession, but refuses to transfer the land
  • Money paid under a controlled transaction void for want of Land Control Board consent is recoverable as a debt under section 7 of the Land Control Act
  • Retention of both the land and the purchase price would amount to unjust enrichment

Court orders

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  1. 1.The Defendant shall refund the Plaintiff the sum of Kshs. 550,000
  2. 2.The costs of this suit shall be borne by the Defendant
  3. 3.Interest on the refund at court rates from the date of filing suit until payment in full

Authorities

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Legislation

  • Evidence ActSections 107, 108, 109, 110 (Sections 107 to 110 relied on; 107 and 108 quoted)
  • Law of Contract ActSection 3(3)
  • Land Control Act Cap 302Sections 6, 6(3), 7
  • Constitution of Kenya, 2010Articles 10(1), 10(2)(b), 159(2)(e)
  • Auctioneers ActCap. 526 (referred to in proviso to section 3(3))

Cases cited (3)

  • Macharia Mwangi Maina & 87 Others vs Davidson Mwangi Kagiri
    [2014] eKLR
  • Makenzi & Another vs Yeshe
    [2023] eKLR
  • Mathu & 3 Others vs Stewart
    [2024] eKLR
Jurisdiction invoked
Original civil jurisdiction (Environment and Land Court) - no specific provision invoked 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, "Njuguna v Nyakinyua Investment Co Ltd (Environment & Land Case 55 ‘B of 2022) [2025] KEELC 4689 (KLR)", Case Analysis (2025). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/4689/eng@2025-06-18

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