Case Law[2026] KEELC 741Kenya
Mungai & another v Cheska Agencies Limited & 3 others (Environment and Land Case 388 of 2017) [2026] KEELC 741 (KLR) (12 February 2026) (Judgment)
Employment and Labour Court of Kenya
Judgment
REPUBLIC OF KENYA
IN THE ENVIRONMENT AND LAND COURT AT NAIROBI
ELC CASE NO. 388 OF 2017
MIGUI MACHARIA MUNGAI ……………….…..……… 1ST
PLAINTIFF
FLAVIA SUSAN KALANDE ……………………..……… 2ND
PLAINTIFF
VERSUS
CHESKA AGENCIES LIMITED ……………….…….. 1ST
DEFENDANT
ELDORADO GARDENS LIMITED …………..…….. 2ND
DEFENDANT
BETTY KAGWIRA ITUNGA …………………..……… 3RD
DEFENDANT
THOTHO JULIUS KARIUKI …………………….….. 4TH
DEFENDANT
JUDGEMENT
ELC CASE NO. 388 OF 2017 Judgement
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1. The Plaintiffs’ commenced this suit vide a Plaint dated 10th
June 2017, amended on 4th December 2018, further amended
on 10th March 2023 and re-amended on 20th December 2023.
They contended that on 8th September 2016, they entered
into an agreement for sale of Nairobi /Block 129/289
hereinafter referred to as the ‘suit land’ registered to the 1st
Defendant and Charged to KCB Bank, for a consideration of
kshs.7.5 million, out of which they paid a deposit of kshs.2.5
million upon execution. Further, that the balance of kshs.5
million was expected to be paid on or before completion date
which was ninety (90) days from the date of execution and in
exchange, the 1st Defendant was expected to supply the
completion documents.
2. They claimed that while they were always ready to pay the
balance of the purchase price, the 1st Defendant refused to
supply them with completion documents thereby frustrating
the sale and has continued to draw a rent income of
kshs.100,000/= per month at their detriment. They aver that
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the 1st Defendant eventually fraudulently sold the suit land to
the 2nd Defendant, that proceeded to procure registration in
its name.
3. They hence sought the following Orders:
a) A permanent injunction do issue against the
Defendants whether by themselves or through
their servants or agents or anybody claiming
through them whatsoever from selling,
transferring or dealing in any manner
whatsoever with the parcel of land known as LR
No. Nairobi/Block 129/289 situated in
Komarock Estate Phase II, Nairobi.
b) An order of specific performance to compel the
1st Defendant to complete the sale by handing
over all the relevant completion documents and
execute a transfer in respect of that property
known as Title Number LR No. Nairobi/Block
129/289 in favour of the Plaintiffs, failing which
the same to be executed by the Deputy
Registrar, High Court of Kenya.
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c) A declaration do issue to the effect that land
parcel number LR No. Nairobi/Block 129/289,
situated in Komarock Estate Phase II, Nairobi
belongs and or is owned by the Plaintiffs
absolutely and consequently the Plaintiffs are
entitled to vacant possession.
d) An order do issue cancelling certificate of lease
in respect of LR No. Nairobi/Block 129/289,
situated in Komarock Estate Phase II, Nairobi
registered in the names of Eldorado Gardens
Limited, the 2nd Defendant and an order be
issued that the same be registered in the names
of the Plaintiffs.
e) A mandatory injunction to compel the
Defendants to hand over vacant possession to
the Plaintiffs of that property known as LR
Number Nairobi / Block/129/289.
f) The sum of Kshs.6,700,000/- as mesne profits as
at March 2023.
g) Costs of this suit together with interest thereon
at
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such rate and for such period of time as this
Honourable court may deem appropriate.
h) Such other or further relief as this Honourable
court may deem appropriate.
4. The suit was opposed by the 1st Defendant vide its statement
of defence dated 7th September 2017 and amended on 21st
December 2018. It denied allegations levelled against it in
the Plaint and claimed that the Plaintiffs only paid a deposit
of kshs.1.8 million. It also contended that the Plaintiffs also
breached a term of the sale agreement between them, which
contemplated that they would pay a sum of kshs. 1.6 million,
which was the balance owing to Kenya Commercial Bank
Limited hereinafter referred to as ‘KCB’ before completion
date to enable the Bank to release completion documents.
5. The 2nd Defendant filed a Statement of Defence denying
allegations levelled against it, in the Plaint and contended
that it entered into an agreement with the 1st Defendant on
17th May 2016, before the Plaintiffs purportedly entered into
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the subject agreement with the 1st Defendant, thus it is an
innocent purchaser for value. Further, that in honoring its
agreement for sale between the 1st Defendant and itself, it
paid the 1st Defendant’s outstanding liabilities with KCB and
secured release and discharge of the property as required.
6. The 3rd and 4th Defendants also filed a statement of defence
in which they contended that they lawfully purchased the
suit land from the 2nd Defendant, who is the registered
owner.
7. The matter proceeded for hearing where the respective
parties called witnesses.
Evidence of the Plaintiffs
8. The 1st Plaintiff who is also an Advocate of the High Court of
Kenya testified as PW1. He acknowledged that by a sale
agreement dated 8th September 2016 between the Plaintiffs
and the 1st Defendant, the Plaintiffs agreed to buy
Nairobi /Block 129/289 situated in Komarock Estate Phase
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II, together with all the buildings and improvements thereon
at an agreed purchase price of kshs.7.5 million, out of which
the Plaintiffs paid a deposit of kshs.2.5 million upon
execution. It was his testimony that there was a condition in
the agreement that the balance of the purchase price of
kshs.5 million would be paid on or before completion date,
which was ninety (90) days from the date of execution and in
exchange, the 1st Defendant would supply the completion
documents. He claimed that while the Plaintiffs were always
ready to pay the balance of the purchase price, the 1st
Defendant refused to supply completion documents thereby
frustrating the sale and despite being issued with a
completion notice dated 7th February 2017, it has still
refused to act and continued to draw a rent income of
kshs.100, 000/= per month, from the suit land at the
detriment of the Plaintiffs. He produced the Plaintiff’s
amended list of documents dated 11th November 2019 as
exhibits 1-18.
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9. In cross-examination by Counsel for the 1st Defendant, PW1
revealed that he had a prior Advocate-Client relationship
with the 1st Defendant and that he drew the subject
agreement for sale where the 1st Defendant was not
represented. Further, that as purchasers, the Plaintiffs
conducted an official search which revealed that the suit land
was Charged to Savings and Loan Kenya Limited for amounts
in excess of kshs.4 million and at Clause (7) of the subject
agreement, he had captured the issue of redeeming the
property so completion documents were to be released after
payment of the loan facility. Further, that the discharge of
Charge had been indicated as a completion document.
10. He claimed that he was not privy to arrears accumulated on
the initial loan of Kshs. 4 million and contended that he is not
sure that the deposit paid by the Plaintiffs of Kshs. 2.5
million could have redeemed the amount owed by the 1st
Defendant to the Bank.
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11. He claimed that the Plaintiffs issued a completion notice on
7th February 2017 to messrs Mwangi Chege & co.
Advocates, then acting for the 1st Defendant, two (2) months
after the date of completion which was on 8th December
2016. Further, that in the said notice, he demanded for
completion documents and indicated that the Plaintiffs were
ready to complete the sale by paying the balance of Kshs. 5
million but the advocate for the 1st Defendant did not request
for proof of funds and he was not aware whether the Bank
was still holding completion documents.
12. He conceded that Clause (7) of the subject agreement
indicated that kshs.1.6 million was to be redeemed by the
purchasers’ financier but there was no letter from their
financier indicating that it would redeem the said sum.
Further, that in the sale agreement, there is no Clause for
refund of the purchase price or for specific performance. He
acknowledged that the Plaintiffs did file an application for
injunction dated 10th June 2017 restraining the Defendants
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from disposing of the suit land and on 15th June 2017, the
Court issued injunctive orders, which directed them to
deposit the balance of the purchase price being kshs. 5
million in Court within three (3) days of the Order but he
made the deposit on 27th June 2017, twelve (12) days after
the Court Order.
13. In cross - examination by Counsel for the 2nd Defendant, PW1
denied manipulating the 1st Defendant as his client and
pointed out that the subject agreement contained a penalty
in case of default by the purchasers being that the vendor
would forfeit Kshs. 500, 000/= and refund Kshs. 2 million but
there was no provision for interest. He conceded that this
Court’s injunctive orders of 15th June 2017 were not lodged
with the Land Registrar because the Plaintiffs’ did not
foresee that the 1st Defendant could sell the suit land during
the pendency of the suit.
14. In cross-examination by Counsel for the 3rd and 4th
Defendants, PW1 stated that he could not caution the title to
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the suit land due to third party interest on the title, being the
Charge for a loan against the said property. He insisted that
the 3rd and 4th Defendants ought to have been aware of the
Plaintiffs’ interest in the suit land as the sale agreement
between the 2nd Defendant and themselves, was prepared by
the advocate for the 2nd Defendant in the matter. He
contended that the Plaintiffs’ claim of mesne profits is based
on projections given by the 1st Defendant as he had no
valuation report.
Evidence of the Defendants
15. DW1 was Maureen Wairimu Mwangi, a director of the 1st
Defendant. She testified that at the time of the impugned
sale agreement, the suit land was Charged to KCB and the
Plaintiffs were aware of that status. Further, that it was a
term of the said agreement that the balance of the purchase
price was to be used to service the loan but the Plaintiffs’
refused to pay up, thus the 1st Defendant elected to engage
the 2nd Defendant for purposes of liquidating the loan facility.
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She confirmed that the 1st Defendant was willing to refund
the Plaintiffs’ the monies. She produced the 1st Defendant’s
bundle of documents dated 30th January 2024 as D. Exhibit 1-
7.
16. In cross examination by Counsel for the Plaintiff, DW1
acknowledged that the Plaintiffs paid the 1st Defendant a
total of Kshs. 2.5 million as deposit but contended that there
was nothing stopping it, from entering into an agreement
with the 2nd Defendant, since it was under pressure from
auctioneers regarding the existing loan.
17. In cross - examination by Counsel for the 2nd Defendant, she
revealed that the 1st Defendant sold the suit land for Kshs. 11
million out of which Kshs. 6 million was paid to her, then the
2nd Defendant paid Kshs. 5 million to KCB but she had no
proof. She also pointed out that in an email dated 25th
January 2017 (D. Ex 4) addressed to the Plaintiffs’, the 1st
Defendant did acknowledge that it had not obtained
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completion documents and was categorical that it was ready
to refund the deposit paid.
18. She revealed that the suit land has four (4) two-bedroom
houses, out of which two (2) are rented out at kshs.16,000/=
per month each, while two others are rented at
kshs.18,000/= each, thus they bring an average monthly
income of Kshs. 75,000/=, which was being collected by the
2nd Defendant, who had been sold for the said suit land in
May, 2016, but signed the transfer form on 18th November
2020.
19. DW2 was Henry Figondo, shareholder and director of the 2nd
Defendant. He stated that in 2015, the 2nd Defendant
advanced the 1st Defendant loan facilities and the suit land
was pledged as security for the advancements. However, the
1st Defendant fell in arrears and as a mitigation measure
offered the suit land for sale, which culminated in execution
of the agreement for sale dated 17th May 2016. Further, that
the loan due to the 2nd Defendant being Kshs. 6 million was
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offset against the purchase price while the balance of Kshs. 5
million was to be paid to KCB, that held the property as
collateral. He confirmed that upon execution of the sale
agreement between the parties, the 2nd Defendant took up
possession of the suit land and servicing of the loan with KCB
resulting in redemption of the 1st Defendant’s liabilities and
the discharge of the property. He however did not have any
statement to prove this position. It was his testimony that
the 1st Defendant then proceeded to execute a transfer and
the 2nd Defendant was issued with a title. He produced the
2nd Defendant’s list of documents dated 19th May 2023 as
Exhibits No. 1-10.
20. In cross-examination, DW2 reiterated that the 2nd Defendant
paid the entire purchase price of Kshs. 11 million to acquire
the suit land and that before purchase, it conducted due
diligence and it was not aware of any Court dispute in the
matter. Further, that the 1st Defendant did not inform him of
any injunctions issued in the matter touching on the suit
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land. He also explained that while he was granted possession
immediately in 2016, the transfer was affected in 2020 and
he sold the suit land to the 3rd and 4th Defendants free from
encumbrances. According to DW2, the four (4) two (2)
bedroomed rental units on the suit land fetch an income of
about kshs.60,000/= per month.
21. DW3 was the 3rd Defendant. It was her testimony that
together with her husband (4th Defendant), they purchased
the suit land from the 2nd Defendant vide an agreement for
sale dated 14th July 2022, where both parties in the
transaction were represented by the law firm of Nelson
Gatungo & Company Advocates (the 2nd Defendant’s
Advocates). She explained that the sale was pursuant to
approval by a resolution of the 2nd Defendant’s Board of
directors. Further, that the agreed purchase price was Kshs.
10,500,000.00/= out of which Kshs. 5,250,000.00/= was paid
upon execution of the agreement and the balance was paid in
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installments between 23rd August 2022 and 9th February
2023, after which they took possession.
22. She claimed that prior to the purchase, they conducted due
diligence which indicated that the 2nd Defendant was the
registered proprietor of the suit land as at 1st December,
2020. Further, that the search indicated that there was nil
encumbrance on the suit land. She disclosed that they
received system generated invoices of unpaid land rents over
the suit land, which their Advocate paid through the
ardhisasa platform. Further, that they settled legal fees
payable together with fees for related services such as
valuation and stamp duty.
23. She confirmed that the vendor shared the completion
documents and that the application for registration of the
transfer in their favour has been lodged at the Lands
Registry. She produced the 3rd and 4th Defendant’s list of
documents dated 18th December 2024 as Exhibits 1-7.
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24. In cross-examination, DW3 said that together with her
spouse the 4th Defendant, they reside in Pennsylvania USA
and that the sale agreement between the 2nd Defendant and
themselves was signed by their representative, Maurice
Ngaire but he does not have a Power of Attorney. She also
stated that they collect Kshs. 15,000/= per unit from each of
the four (4) units on the suit land, since March 2023 when
she came to Kenya but she does not have full occupancy.
25. In re-examination, she reiterated that the transfer to them
was executed and they were awaiting title processing.
26. The parties thereafter filed their respective written
submissions.
Submissions
27. The Plaintiffs relied on the case of Gurdev Singh Birdi and
Marinder Singh Ghatora and Abubakar Madhbuti to
submit that having deposited the entire balance of the
purchase price to this Court, they have demonstrated that
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they were ready and willing to perform all the terms of the
contract thus they are entitled to an order of specific
performance. Further, that the title held in the 2nd
Defendant’s name ought to be cancelled for reasons that the
2nd Defendant procured registration in its own name through
fraud, in complete disregard of their interest in the suit land
and while the matter was still in court, an action which saw
Ms. Munyira Munyi, a director of the 1st Defendant being
cited for contempt and sentenced to six (6) months’
imprisonment or a fine for the sum of Kshs.200,000/=.
28. On their prayer for mesne profits, the Plaintiffs relied on the
following decisions: Rajan Shah T/A Rajan S. Shah &
Partners v Bipin P. Shah [2016] eKLR; Attorney
General v Halal Meat Products Limited [2016] eKLR
and Lydia Akello Ochuka v Cecilia Mwikali Kaloki &
another [2019] eKLR to submit that the person in wrongful
possession and enjoyment of the immovable property is liable
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for mesne profits. They prayed to be awarded mesne profits
of Kshs.100, 000/= from 1st September 2017.
29. On its part, the 1st Defendant submitted that the impugned
agreement between the parties had a mandatory completion
date of nine (90) days and provided that the balance of the
purchase price of Kshs. 5 million was to be paid to the
vendor by financiers of the purchasers on or before the
completion date. It cited the case of National Bank Kenya
Ltd v Pipeplastic Samkolit (K) Limited and another
[2002] 2EA 503 where the court stated that a Court cannot
rewrite a contract between the parties.
30. It also relied on the case of Sisto Wambugu v Kamau
Njuguna [1983] eKLR where the Court held that contracts
for the sale of land give the vendor the right to rescind the
agreement if the purchaser does not pay at the appointed
time.
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31. Reliance was also placed on the following decisions: Amina
Abdul Kadir Hawa v Rabinder Nath Anamd & another
[2012] KEHC 23709(KLR), Nabro Properties Ltd v Sky
Structures Ltd & 2 others (2002)KLR 299 and Bernard
Gathogo kangoro v David M Muchemi & Another
Nairobi HCCC NO. 20159 of 2023 to submit that despite
this Court’s orders of 15th June 2017 that the balance of the
purchase price be deposited in Court by 18th June 2017, the
Plaintiffs made the deposit on 27th June 2017, twelve (12)
days later, thus they failed to demonstrate that they were
ready and willing to perform all the terms of the agreement
therefore failing the criteria set for grant of specific
performance.
32. On whether the 2nd Defendant’s title ought to be cancelled,
the 1st Defendant submitted that there is no proof of
fraudulent transactions or misrepresentation that would call
for the said title to be impeached under Section 26 of the
Land Registration Act.
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33. On the issue of mesne profits, it was submitted that the
Plaintiffs have never acquired title to the suit land and
neither have they ever been in lawful occupation as the
agreement for sale dated 8th September 2016 was never
completed. Further, that they have not proved how they
arrived at the figure of kshs. 100,000/= per month. To this
end, reliance was placed on the following decisions: John
Mithamo Njika v Kellen Nyagala Nguumiri [2015] eKLR
and Kenya Breweries Limited Kiambu v General
Transport Agency Limited [2000] eKLR.
34. On its part, the 2nd Defendant submitted that title is
conclusive evidence of ownership and that its title is not
tainted by fraud or misrepresentation as alleged to warrant
impeaching it, under Section 26 of the Land Registration Act.
Further, that it has met the threshold of an innocent
purchaser as described by the Supreme Court in Sehmi &
another v Tabarana Company Limited & 5 others
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(Petition E030 OF 2023 [2005] KESC 21 (KLR) as its
acquisition followed proper due diligence and process.
35. It also submitted that it does not have a contract with the
Plaintiffs’ and as such the claim of specific performance does
not attach to it. It reiterated that specific performance should
not be ordered where it would cause hardship on a
Defendant. To this end, it relied on the following decisions:
Reliable Electrical Engineers v Mantrac Kenya Limited
[2006] eKLR and Gurdev Singh Birdi & another v
Abubakar Madhbuti [1997] eKLR to buttress its
averments.
Analysis and Determination
36. Upon consideration of the pleadings filed herein including
testimonies of the witnesses and rivalling submissions, the
following are the issues for determination:
Whether the Plaintiffs are entitled to an order of
specific performance.
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Whether the Plaintiffs are entitled to an order of
mesne profits.
Whether the Lease registered to the 2nd Defendant
should be cancelled.
Whether the 3rd and 4th Defendants should be
compelled to hand over vacant possession to the
Plaintiffs.
Whether the Plaintiffs are entitled to an order of
specific performance.
37. The Plaintiffs’ case is that by a sale agreement dated 8th
September 2016, they agreed to purchase Nairobi /Block
129/289 from the 1st Defendant at a consideration of Kshs.
7.5 million and paid Kshs. 2.5 million as deposit but despite
being ready and willing to pay the balance of the purchase
price, the 1st Defendant frustrated the sale by neglecting to
issue them with completion documents and it eventually
fraudulently transferred the suit land to the 2nd Defendant.
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38. On its part, the 1st Defendant appears to admit that it
rescinded the agreement at the fault of the Plaintiffs’ who as
at the completion date on 18th December 2016, had not paid
the balance of the purchase price of Kshs. 5 million. It avers
that by an email dated 25th January 2017, it had indicated to
the Plaintiffs that it was ready to refund the deposit paid. It
also contended that even after being given a chance to
deposit the balance of the purchase price in Court, the
Plaintiffs deposited the same twelve (12) days late, contrary
to the clear timelines given by the Court.
39. On its part, the 2nd Defendant contends that it purchased the
suit land vide a sale agreement dated 17th May 2016 and
upon execution of the sale agreement, it took up possession
and serviced the outstanding loan Charged on the title to the
suit land by KCB resulting in redemption of the 1st
Defendant’s liabilities, then sold it to the 3rd and 4th
Defendants without any encumbrances.
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40. At this juncture, the Court is basically called upon to
interpret the agreement for sale between the Plaintiffs and
the 1st Defendant. In in Pius Kimaiyo Langat v Co-
operative Bank of Kenya Ltd (2017) eKLR, the Court
stated that:-
“We are alive to the hallowed legal maxim that it
is not the business of Courts to rewrite contracts
between parties, they are bound by the terms of
their contracts, unless coercion, fraud or undue
influence are pleaded and proved.”
41. From the testimony of PW1, I note during cross examination
he admitted that they had an Advocate-Client relationship
with the 1st Defendant and that he drew the subject
agreement for sale where the 1st Defendant was not
represented. PW1 further confirmed that they conducted an
official search which revealed that the suit land was Charged
to Savings and Loan Kenya Limited for amounts in excess of
kshs.4 million and that they had agreed they were to repay
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the said loan facility so as to obtain the completion
documents.
42. On a keen reading of the sale agreement dated 8th September
2016 between the Plaintiffs and 1st Defendant, I note Clause
(7) of the said agreement provided that the loan of ksh.1.6
million would be redeemed by the financier of the
purchasers’ at the completion date and then the difference of
the purchase price would be paid to the vendor. As per
Clause 5, completion date was to be ninety (90) days from
the date of execution. At this juncture, the Court will
determine whether the Plaintiffs paid the balance of the
purchase price within the requisite time, as provided under
the Sale Agreement to enable it make a determination as to
whether the Plaintiffs have fulfilled the tenets of specific
performance.
43. The requirements for the grant of the remedy of specific
performance were set out by the Supreme Court of Uganda
in Manzoor v Baram (2003) 2 E.A. 580 as quoted by the
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Court of Appeal in Licinus Investment Limited v Dalpiaz
[2023] KECA 465 (KLR) as follows:
“Specific performance is an equitable remedy
grounded in the equitable maxim that “equity
regards as done, that which ought to be done”. As
an equitable remedy, it is decreed at the
discretion of the court. The basic rule is that
specific performance will not be decreed where a
common law remedy such as damages, would be
adequate to put the plaintiff in the position he
would have been but for the breach. In that
regard, the courts have long considered damages
an inadequate remedy for breach of a contract for
the sale of land, and they more readily decree
specific performance to enforce such contract as
a matter of course.”
44. Further, in Thrift Homes Limited v Kenya Investments
Limited [2015] eKLR the Court stated that:
“The remedy of specific performance like any
other equitable remedy is discretionary. Second,
the jurisdiction to grant the relief of specific
performance is based on the existence of a valid
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enforceable contract. Third, specific performance
will not be ordered if the contract suffers from
some defect such as mistake or illegality or if
there is an alternative effective remedy.” Emphasis
Mine
45. Tunoi JA made the following remarks while declining to
issue an order of Specific performance in Gurdev Singh
Birdi & Another V Abubakar Madhbuti
[1997] KECA 13 (KLR), in a judgement in which he
concurred with two other judges of the Court;
“……Secondly, there was no evidence that prior to
the filing of the suit the Appellants tendered the
balance of the purchase price to the Respondent.
This, in my view, only confirms that they were
never ready, able or willing to carry out their part
of the contract, The Appellants simply could not
raise the balance of the purchase price on or
before the specified time, i.e. January 31, 1993,
and were in fact in breach of the agreement.
Thirdly, the nature of the property and the
surrounding circumstances make it inequitable to
grant the relief of specific performance. The
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contract not having been completed in January,
1993, the period fixed for completion, it would be
oppressive, unjust and financially injurious to
require the respondent, who has not been guilty
of laches nor inordinate delay, to part with his
property more than four years after the event
when its current value has materially
appreciate..”
46. The question we need to ponder is whether the 1st Defendant
was entitled to rescind the sale agreement between the
Plaintiffs and itself. In Samuel Ngige Kiarie v Njowamu
Construction Company Limited & another [2019] eKLR,
the Court of Appeal held that;
“The non-payment of the full purchase price as
stipulated in a contract automatically renders the
agreement immediately voidable and accordingly
terminable at the instance of the innocent party.”
47. From the evidence tendered in Court, PW1 admitted that the
Plaintiffs had not finished paying the purchase price, in
accordance with the Sale Agreement, by the time the suit
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land was sold to the 2nd Defendant. Further, even when the
Court granted an interlocutory injunction and directed the
Plaintiffs to pay the monies in Court, PW1 admitted that they
still delayed in doing so and paid twelve (12) days late. It is
trite that parties are bound by the terms of their contract
and the Court cannot be called upon to rewrite it.
48. At this juncture, I opine that since the Plaintiffs did not even
pay monies to KCB that held the title to the suit land as had
been agreed upon, so as to obtain the Discharge of Charge,
while associating myself with the decisions quoted, even
though the Plaintiffs claim they are ready and willing to
complete the sale agreement dated the 8th September, 2016
and even deposited monies in Court, I am not satisfied that
the Plaintiffs performed their full obligations as per the
impugned Sale Agreement prior to filing this suit. Further,
the terms of the Sale Agreement were clear and it seems the
Plaintiffs who were previously advocates for the 1st
Defendant, sought to purchase the suit land on their terms.
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In the foregoing, I find that the Plaintiffs are not entitled to
specific performance as claimed but a refund of the amounts
paid to the 1st Defendant towards the purchase price since
DW1 admitted that they were ready to refund it. Further, I
note the title to the suit land already passed to a third party.
Whether the Plaintiffs are entitled to an order of mesne
profits.
49. On the Plaintiffs’ prayer for mesne profits, the Defendants
have urged the Court to deny the Plaintiffs the same on the
basis that the agreement for sale dated 8th September 2016
was never completed nor did the Plaintiffs take possession of
the suit land.
50. On mesne profits, I wish to refer to Section 2 of the Civil
Procedure Act, which defines it as follows:
“mesne profits”, in relation to property, means
those profits which the person in wrongful
possession of such property actually received or
might with ordinary diligence have received
ELC CASE NO. 388 OF 2017 Judgement
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therefrom, together with interest on such profits,
but does not include profits due to improvements
made by the person in wrongful possession;’
51. In the case of Peter Mwangi Mbuthia & another v Samow
Edin Osman [2014] eKLR, the Court of Appeal while
dealing with the issue of mesne profits held as follows:
“We agree with counsel for the appellants that it
was incumbent upon the respondent to place
material before the court demonstrating how the
amount that was claimed for mesne profits was
arrived at. Absent that, the learned judge erred in
awarding an amount that was neither
substantiated nor established.”
52. From the evidence tendered in Court, I find that since the
Plaintiffs failed to prove payment of the full purchase price at
the agreed timelines, demonstrated having taken possession
of the suit land and furnished Court with a valuation report, I
opine that they have not provided proof of the basis for the
demand of mesne profits. In the circumstances while
ELC CASE NO. 388 OF 2017 Judgement
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associating myself with the decisions quoted, I find that the
Plaintiffs are not entitled to mesne profits.
Whether the Lease registered to the 2nd Defendant
should be cancelled and if the 3rd and 4th Defendants
should be compelled to hand over vacant possession to
the Plaintiffs.
53. The Plaintiffs have sought for the cancellation of the Lease
held by the 2nd Defendant and for the 3rd and 4th Defendants
to grant them vacant possession of the suit land. They insist
that they are entitled to the suit land. The Defendants have
strongly argued that no evidence was proffered to entitle this
Court to take that position.
54. On the issue of cancellation of the 2nd Defendant’s title as
sought by the Plaintiffs. I note the 1st Defendant entered into
a Sale Agreement dated the 17th May, 2016 with the 2nd
Defendant, that paid the full purchase price, after which the
suit land was transferred to it. DW2 admitted that the 2nd
Defendant sold the suit land to the 3rd and 4th Defendants
ELC CASE NO. 388 OF 2017 Judgement
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that paid the full purchase price and took possession. It
further emerged in evidence that transfer was effected to the
2nd Defendant after the completion period of the Sale
Agreement between the Plaintiff and 1st Defendant had
lapsed on 8th December 2016.
55. On proof of ownership of land, Section 26 of the Land
Registration Act of 2012 provides as follows:
‘26. (1) The certificate of title issued by the
Registrar upon registration, or to a purchaser of
land upon a transfer or transmission by the
proprietor shall be taken by all courts as prima
facie evidence that the person named as
proprietor of the land is the absolute and
indefeasible owner, subject to the encumbrances,
easements, restrictions and conditions contained
or endorsed in the certificate, and the title of that
proprietor shall not be subject to challenge,
except—
(a) on the ground of fraud or misrepresentation
to which
the person is proved to be a party; or
(b) where the certificate of title has been acquired
ELC CASE NO. 388 OF 2017 Judgement
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illegally, unprocedurally or through a corrupt
scheme. Emphasis Mine
56. In the case of Dr. Joseph Arap Ngok – Vs – Justice Moijo
Ole Keiwua & 5 Others, Nai. Civil Appeal No. 60 of 1997
the Court categorically declared that:
“Section 23(1) of the then Registration of Titles
Act (now reproduced substantially as Section 25
and 26 of the Land Registration Act) gives an
absolute and indefeasible title to the owner of the
property. The title of such an owner can only be
subject to challenge on grounds of fraud or
misrepresentation to which the owner is proved
to be a party. Such is the sanctity of title
bestowed upon the titleholder under the Act. It is
our law and law takes precedence over all other
alleged equitable rights of title. In fact the Act is
meant to give such sanctity of title, otherwise the
whole process of registration of Titles and the
entire system in relation to ownership of property
in Kenya would be placed in jeopardy.” Emphasis
Mine
ELC CASE NO. 388 OF 2017 Judgement
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57. Based on the evidence before me while relying on the legal
provisions I have cited as well as associating myself with the
quoted decisions, I find that the Plaintiffs failed to prove that
the 2nd Defendant fraudulently acquired the suit land. From
the evidence before me, I find that the 2nd Defendant was
able to prove it legally acquired the suit land from the 1st
Defendant after paying the full purchase price. I opine that
even though the 1st Defendant initially sold the suit land to
the Plaintiffs that failed to acquire any interest to it, as they
did not finalize paying the purchase price, it did not bar the
2nd Defendant from entering into an Agreement of Sale with
the 1st Defendant who was the owner of the land. Further, it
also did not bar the 2nd Defendant from selling the suit land
to the 3rd and 4th Defendants. In the foregoing, I find that the
Certificate of title for the suit land, which is in the 2nd
Defendant’s name is legitimate and will decline to cancel it.
58. I note the Plaintiffs did not plead for refund of the purchase
price noting that the 1st Defendant vide its email dated the
25th January, 2017 had expressed its willingness to refund
ELC CASE NO. 388 OF 2017 Judgement
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the deposit of the purchase price paid. In the case of
Adetonn Oladeji (NIG) Ltd vs Nigeria Breweries PLC
S.C. 91/2002 Judge Pius Aderemi J.S.C expressed himself as
follows:
“…..it is now a very trite principle of law that
parties are bound by their pleadings and that any
evidence led by any of the parties which does not
support the averments in the pleadings or put in
another way which is at variance with the
averments of the pleadings goes to no issue and
must be disregarded.”
(See also the case of Raila Amolo Odinga & Another v
IEBC & 2 others [2017] eKLR).
59. In the foregoing, I am unable to make an Order for refund of
the purchase price since the same was not pleaded by the
Plaintiff. I direct the Plaintiffs to file a fresh suit to claim the
refund of the purchase price from the 1st Defendant and also
obtain the monies they deposited in Court.
ELC CASE NO. 388 OF 2017 Judgement
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60. On costs, since the 1st Defendant was responsible for the
dispute
herein, it should bear the responsibility to cater for the costs
of the parties herein.
61. In the foregoing, I find that the Plaintiffs have not proved
their case on a balance of probability and will proceed to
dismiss it.
62. Costs of the suit is awarded to the Plaintiffs, 2nd, 3rd and 4th
Defendants to be borne by the 1st Defendant.
DATED SIGNED AND DELIVERED AT NAIROBI THIS
12TH DAY OF FEBRUARY, 2026
CHRISTINE OCHIENG
JUDGE
In the presence of:
Ms Macharia holding brief for Mungai for Plaintiffs
Githui for 1st Defendant
ELC CASE NO. 388 OF 2017 Judgement
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Gatungo for 2nd Defendant
Ms Kinyua for 3rd and 4th Defendants
Court Assistant: Joan
ELC CASE NO. 388 OF 2017 Judgement
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