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ELCPartially AllowedELC Case No. E084 of 2023· [2026] KEELC 4040 (KLR)

Abraham v Lordship Africa Fund Management Ltd & another (Environment and Land Case E084 of 2023) [2026] KEELC 4040 (KLR)

Environment and Land Court
24 June 2026
5,269 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan buyer who missed a contractual completion date lost the property but won back his full deposit because the vendor's own delays caused part of the problem.

What this practically means

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Executive summary

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The Plaintiff sued the 1st and 2nd Defendants over a failed purchase of Plot No. 36, a half-acre portion of L.R 195/228, Karen, for Kshs 51,000,000 plus Kshs 1,000,000 for a share in the 2nd Defendant's management company. He sought an order compelling transfer upon payment of the balance, a declaration that the completion notice of 21st July 2023 and the ensuing rescission were null and void, or alternatively a refund of all monies paid with interest, plus costs. The Defendants denied the claim, contending the Plaintiff defaulted on a 10th July 2022 completion date having paid only Kshs 14,840,000 of Kshs 52,000,000, and that any variation required mutual written consent under Clause 4. The Court framed four issues: validity of the sale agreement, lawfulness of the completion and rescission notices, entitlement to specific performance, and entitlement to a refund. It held the agreement valid and binding notwithstanding the Defendants' admitted failure to return the executed counterpart, since no vitiating factor was pleaded or proven and the delay was an oversight by their advocates. It found no valid variation of the completion period, holding the alleged oral extension unproven and part-payment incapable of implying variation; the rescission was therefore lawful and the declaration sought was dismissed. Specific performance was refused because granting it would rewrite the contract by extending the completion period, though the Defendant's conduct was censured as it materially contributed to the Plaintiff's inability to access an approved Stanbic Bank loan facility. The Court held it inequitable for the Defendants to retain both the land and the purchase monies, amounting to unjust enrichment, and ordered a refund of Kshs 14,840,000 with interest at court rates from filing. Each party was to bear its own costs.

Key legal issues

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01

Validity of the sale agreement despite the unreturned executed counterpart

Holding

The agreement was valid and binding; the delay was an oversight by the Defendants' advocates and no vitiating factor was pleaded or proven

Reasoning

Section 3(3) of the Law of Contract Act requires writing, signature and attestation, all of which were satisfied. Vitiating factors such as mistake, illegality, fraud, incapacity or lack of mutual consent were neither pleaded nor proven. Stamping and return of the counterpart were formalities; the delay did not affect contract formation.

p. 18
02

Validity of the completion and rescission notices

Holding

The rescission notice was lawful because the completion period was never validly varied and the Plaintiff defaulted

Reasoning

The alleged oral extension was denied and unproven; Clause 4 required any variation to be by mutual written consent. The part-payment of Kshs 4,840,000 after expiry could not vary the express terms. However, the Defendant's failure to furnish the executed agreement impeded the Plaintiff's access to approved financing, which the Court considered when assessing remedies.

p. 20
03

Entitlement to specific performance

Holding

Specific performance was refused as the contract had lapsed in accordance with its express terms and no valid variation existed

Reasoning

Specific performance is discretionary and requires readiness and willingness to perform. Granting it would amount to rewriting the contract by extending the completion period without agreed variation. Although the Defendant's conduct deserved censure, equity cannot be invoked to defeat express contractual provisions freely agreed by the parties.

p. 24
04

Entitlement to a refund of monies paid

Holding

The Plaintiff was entitled to a refund of Kshs 14,840,000 with interest, as forfeiture would be unjust enrichment

Reasoning

The Defendants did not demonstrate an entitlement under the agreement to retain all monies paid despite non-completion. Their admitted failure to furnish the executed agreement materially contributed to the Plaintiff's inability to access the approved loan facility. Retaining both the land and the monies would be inequitable and unjust enrichment.

p. 24

Legal principles established

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  • A contract for the disposition of an interest in land must be in writing, signed by all parties and attested, and delays in forwarding an executed copy do not defeat its formation absent vitiating factors
  • A variation of a completion date must be effected in the manner expressly stipulated, namely by mutual written consent; part-payment cannot imply a variation
  • A vendor whose own omission contributed to the purchaser's inability to complete cannot forfeit all monies paid; retaining both the land and the purchase monies would be unjust enrichment
  • Courts cannot rewrite contracts between parties unless coercion, fraud or undue influence are pleaded and proved

Court orders

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  1. 1.Dismissal of the prayer for a declaration that the completion notice and the subsequent notice of rescission were unlawful
  2. 2.Declining the prayer for specific performance compelling the transfer of the suit property
  3. 3.Refund of all monies paid
  4. 4.The Defendant to refund to the Plaintiff the sum of Kshs 14,840,000 together with interest at court rates from the date of filing the suit until payment in full
  5. 5.Each party to bear its own costs

Authorities

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Legislation

  • Law of Contract ActSection 3(3)
  • Stamp Duty Act
  • Proceeds of Crime and Anti-Money Laundering Act, 2009
  • Law Society Conditions of SaleCondition 19

Cases cited (23)

  • Boniface Kevin Omondi & another v Marlborough Properties Ltd
    [2015] eKLR
  • British and Commonwealth Holdings PLC v Quadrex Holdings Inc
    (1989) 3 All ER 492
  • Njoroge v Maina
    [2023] KEELC 20293(KLR)
  • Gurdev Singh Birdi & another v Abubakar Madhbuti
    [1999] eKLR
  • Dina Management Limited v County Government of Mombasa & 5 others
    [2021] KESC 16
  • Abdi v Fondo
    [2023] KECA 821
  • Ndungu & 2 others v Ruigu & another
    [2022] KEELC 13270
  • Centre Park Plaza Ltd v Rural Housing Estates Ltd
  • Mureithi t/a PK Mureithi & Co Advocates v Kibe & Another
  • Ngoi v Kariuki
    [2024] KEELC 13377
  • Onyancha & Another v Lagat
    [2025]
  • Marete v Ndegwa & 2 others
    [2024] KECA 545
  • Housing Company of East Africa Limited v Board of Trustees National Social Security Fund & 2 others
    [2018] eKLR
  • J.T.M. Construction & Equipment Ltd v Circle B. Farms Ltd
  • Stickney v Keeble
  • Lomoro v Spring Hillpark Limited
    [2023] KEELC 19144
  • Njamunyu v Nyaga
    (1983) KLR 282
  • Elijah Kipkorir Barmalel & another v John Kiplagat Chemweno & 3 others
    [2010] eKLR
  • Ayub Ndungu v Marion Waithera Gacheru
    [2006] eKLR
  • Karanja Mbugua & Mary Anne Mwendwa Mwiti v Marybin Holding Co. Ltd
    ELC Suit No. 106 of 2012
  • National Bank of Kenya Ltd vs. Pipe Plastic Samkolit (K) Ltd
    [2011] eKLR
  • Pius Kimaiyo Langat vs. Co-operative Bank of Kenya Ltd
    [2017] eKLR
  • Reliable Electrical Engineers Ltd vs Mantrace Kenya Limited
    (2006) eKLR
Jurisdiction invoked
Environment and Land Court jurisdiction under the Environment and Land Court Act over contracts for the disposition of an interest in land

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, "Abraham v Lordship Africa Fund Management Ltd & another (Environment and Land Case E084 of 2023) [2026] KEELC 4040 (KLR)", Case Analysis (2026). ELC Case No. E084 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/4040/eng@2026-06-24

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