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ELCPartially AllowedNot stated in the judgment

Delmonte Kenya Limited v Goshen Gardens Limited & another (Environment and Land Case 1245 of 2015) [2025] KEELC 5256 (KLR)

Environment and Land Court
10 July 2025
7,818 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~31 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a school occupying land without its own signed lease had no right to stay and must vacate by 10 December 2025.

What this practically means

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Executive summary

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The plaintiff leased 75 acres of L.R. No. 12XX7/2 to the 1st Defendant for eight years from 3rd September 2013 at Kshs. 550,000 monthly. Alleging rent default, the plaintiff terminated the lease by notice dated 5th May 2015. The 1st Defendant's challenge in ELC 306 of 2015 was withdrawn on 11th December 2015. In the interim, the 1st Defendant sold its school assets to the 2nd Defendant, which took possession and erected 'Pioneer Girls School' signage, without any executed lease with the plaintiff, who consistently refused to commit to a new lease pending surrender of possession and received rents on a without prejudice basis. The plaintiff sued for injunctions, vacant possession, mesne profits and costs; both defendants filed counterclaims, the 2nd Defendant seeking rectification, a constructive trust over the reversionary term, occupation under proprietary estoppel or as a controlled tenancy under Cap 301. The court framed five issues and held that the lease expired by effluxion of time on 2nd September 2021; that privity barred the 2nd Defendant from enforcing the 1st Defendant's lease; that no lease existed with the 2nd Defendant; and that no facts supported estoppel, as the plaintiff never represented that a lease would be granted and a mere intention to contract is unenforceable. Judgment was entered for the plaintiff against both defendants jointly and severally: a permanent injunction against transfer of possession, and a mandatory injunction compelling vacatur on 10th December 2025 with removal of fixtures and supervised eviction on default. Mesne profits were refused, equivalent monies having been paid during the suit. Vacant possession was deferred to 10th December 2025 in the best interest of the child, allowing the school year to conclude. Costs were awarded to the plaintiff; no costs on the counter-claims, which were dismissed in their entirety.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether or not a contract of lease exists between the plaintiff and the Defendants
  2. 2.Whether or not the 2nd Defendant is entitled to remain in occupation under the doctrine of estoppel
  3. 3.Is the Plaintiff entitled to vacant possession of the suit property 12XX7/2?
  4. 4.Are mesne profits due and payable?
  5. 5.Who bears the costs of the suit?

Key legal issues

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01

Existence of a lease between the plaintiff and the 2nd Defendant

Holding

No lease existed between the plaintiff and the 2nd Defendant; the original lease with the 1st Defendant expired by effluxion of time on 2nd September 2021, and the 2nd Defendant occupies only at the plaintiff's consent.

Reasoning

The executed lease of 3rd September 2013 was between plaintiff and 1st Defendant only. No subsequent lease was executed with the 2nd Defendant, who was a stranger to the impugned lease and, under privity of contract, could derive no rights from it. Rents received by the plaintiff were expressly on a without prejudice basis pending mesne profits, and the plaintiff consistently denied consent.

p. 11
02

Proprietary estoppel / tenancy by estoppel

Holding

The defence of estoppel fails; none of the plaintiff's actions or correspondence constituted a representation that a lease would be executed, and an unfulfilled intention to contract is unenforceable.

Reasoning

The court examined the meetings and correspondence, including the 1st Defendant's advocate's letter of 28/9/2015, and found no confirmation from the plaintiff of any promise. The plaintiff instead warned the 2nd Defendant against trespass and received rents only without prejudice. The court cannot compel parties to translate a mere intention into a lease.

p. 13
03

Vacant possession and mesne profits

Holding

The plaintiff proved its case on a balance of probabilities and is entitled to vacant possession, but not mesne profits since equivalent monies were paid during the suit.

Reasoning

The plaintiff's title and lease entitlement were undisputed; the 2nd Defendant had no legal basis to remain. Vacant possession was ordered, but mesne profits were refused because the 2nd Defendant paid monthly rents throughout, which the court held were equivalent to mesne profits.

p. 13
04

Controlled tenancy under Cap 301

Holding

The claim that the tenancy was controlled under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act was untenable; the lease had anyway expired by effluxion of time.

Reasoning

The plaintiff argued, and the court effectively accepted, that no lease or tenancy relationship existed with the 2nd Defendant at all, so no controlled tenancy could arise; the Act does not cover school premises and mutual agreement is absent.

p. 9

Legal principles established

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  • A contract cannot be enforced by or against a third party under the doctrine of privity of contract
  • A court of law cannot re-write a contract between parties
  • Without a lease or consent, a person in occupation cannot deny the landlord vacant possession; mere intention to lease is unenforceable

Court orders

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  1. 1.A permanent injunction restraining the 1st and 2nd defendants from transferring possession of the plaintiff's property being a portion of L.R. No. 12XX7/2 to any other third party, with effect from 10th December 2025
  2. 2.A mandatory injunction compelling the defendants, on 10th December 2025, to vacate the suit property
  3. 3.The defendants jointly and severally to remove all fixtures, fittings, effects and/or assets from the suit property and make good all damage caused; in default the plaintiff may remove them and recover the costs of removal
  4. 4.Delivery of vacant possession of the suit property on 10th December 2025 in good and substantial repair; in default, eviction supervised by the Officer Commanding Ngati Police Station
  5. 5.The 2nd Defendant to surrender vacant possession on 10th December 2025 to allow the school calendar run to the end of the year, continuing to pay monthly rents until then
  6. 6.Costs of the suit awarded to the Plaintiff; no costs awarded in the counter-claim

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
Original civil jurisdiction of the Environment and Land Court over the suit property L.R. No. 12XX7/2 (not expressly cited in the judgment)

Relief refused

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Mesne profits at prevailing rental market rates

The monies equivalent to mesne profits were already paid by the 2nd Defendant during the pendency of the suit

p. 13

2nd Defendant's counterclaim: rectification, declarations of constructive trust, proprietary estoppel, controlled tenancy, new lease/assignment and damages

No lease existed between plaintiff and 2nd Defendant; privity barred enforcement of the 1st Defendant's lease by a third party; no facts supported estoppel

p. 14

1st Defendant's counterclaim against the 2nd Defendant

Found to be without merit

p. 14

Costs

Costs of the suit awarded to the Plaintiff. No costs awarded in the counter-claim.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

There being no lease between Plaintifi and the 2nd Defendant it follows that the 2nd Defendant can only remain in possession of the suit premises with the consent of the plaintifi.
p. 13No tenancy without consent
it is this court’s holding that none of the actions of the plaintifi can be construed as mispresenting to the 2nd Defendant that a lease agreement would be executed.
p. 13Rejection of estoppel
I hold that the Plaintifi has proved its case on a balance of probabilities and is entitled to vacant possession. However, it is not entitled to mesne profits as the monies equivalent to mesne profits has been paid by the 2nd Defendant during the pendency of this suit.
p. 13Vacant possession granted; mesne profits refused
A mandatory injunction be issued to compel the Defendants either by themselves their agents and/or employees or otherwise whomsoever on 10th December, 2025 to vacate the Plaintifi’s property known as LR.No.12XX7/2(the suit property).
p. 14Final orders - mandatory injunction
To deliver vacant possession of the suit property on 10th December, 2025 to the Plaintifi in good and substantial repair and condition. In default of compliance of this order, the Defendants be evicted from the suit property and the Oficer Commanding Ngati Police Station is directed to supervise the eviction exercise.
p. 14Final orders - vacant possession and eviction
Costs of the suit awarded to the Plaintifi. No costs awarded in the counter-claim.
p. 14Costs

Issues in the judgment

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minor

Contradiction in the description of the termination notice period: the plaintiff pleaded and testified to a 30 days' notice, while the 1st Defendant's evidence and the 2nd Defendant's pleading describe a 15 days' notice

minor

DW3's testimony refers to a letter dated 17/10/2025 asking for a lease, which post-dates the events and the evidence period and appears to be an error for 2015

minor

The suit property is inconsistently referred to as L.R. No. 12XX7/2 and L.R 12XX7/4, including in the 2nd Defendant's rectification prayer

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, "Delmonte Kenya Limited v Goshen Gardens Limited & another (Environment and Land Case 1245 of 2015) [2025] KEELC 5256 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/5256/eng@2025-07-10

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