Case Law[2026] KEELC 669Kenya
Wirell v Chepkosgey (Environment and Land Case 110 of 2015) [2026] KEELC 669 (KLR) (12 February 2026) (Judgment)
Employment and Labour Court of Kenya
Judgment
REPUBLIC OF KENYA
IN THE ENVIRONMENT AND LAND COURT AT ELDORET
ELC CASE NO. 110 OF 2015
NILS STAFFAN WIRELL …….......................................
PLAINTIFF
-VERSUS-
EMILY CHEPKOSGEY ……….................................…
DEFENDANT
JUDGMENT:
1. The Plaintiff instituted the present suit vide a Plaint dated on
29.01.2015 and Amended on 2nd May, 2019, against the
Defendant, seeking the following ORDERS;
i. An order that the joint ownership of parcel No.
ELDORET MUNICIPALITY BLOCK 14/360 by the
Plaintiff and the Defendant be and is hereby
severed.
ii. A declaration that the plaintiff is the sole and
absolute shareholder of the parcel No. ELDORET
MUNICIPALITY BLOCK 14/360 and all the household
good, equipment and fittings therein.
iii. A declaration that the Defendant holds and is
registered as a Co-owner of the property No.
ELDORET MUNICIPALITY BLOCK 14/360 in trust for
the plaintiff.
iv. An Order that upon the severance of the joint
ownership the property No. ELDORET MUNICIPALITY
BLOCK 14/360 be sold at the market value and the
ELC CASE NO. 110 OF 2015 JUDGMENT Page
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proceeds of the sale be used to pay the mortgage
debt due to Nordea Bank in Sweden and the
remainder of the proceeds be apportioned
accordingly.
v. An alternative prayer in terms of paragraph 11 and
12 above.
vi. An Order declaring that the defendant is
accountable to the plaintiff in respect of all
household goods and fittings and equipment
amounting to Kshs. 5,000,000/=
vii. An order do issue to the Deputy Registrar
authorizing her to sign any document the
defendant may refuse to sign.
viii. Costs of this suit together with interest at Court
rates.
ix. Any other or alternative relief which this
Honourable Court deems fit to grant.
Plaintiff’s Case:
2. The plaintiff avers that he solely sourced for funds by
charging his properties in Sweden and securing a loan from
Nordea Bank in Sweden to enable him purchase land parcel
No. ELDORET MUNICIPALITY BLOCK 14/360 (hereinafter
referred to as the suit land) measuring approx. 0.2Ha
together with the developments thereon.
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3. Pursuant to the said purchase, the suit land was jointly
registered in the names of the plaintiff and the defendant as
joint owners of the leasehold interest.
4. It is the plaintiff’s claim that the registration of the suit land
in their joint names was as a result of the close relationship
and friendship between him and the defendant and
maintained that the joint registration did not confer upon the
defendant any proprietary rights over the suit land,
particularly because the consideration price was paid solely
by the plaintiff without any contribution by the defendant.
5. The plaintiff further averred that he incurred additional
expenses of Kshs. 5.3 million and 3 million in building and
refurbishing the servant’s quarters and renovating the main
house respectively.
6. It is also the plaintiff’s claim that they entered into a
Memorandum of Understanding (MOU) with the defendant,
wherein they agreed with the defendant to dispose off the
suit land to enable the plaintiff offset the loan in Sweden and
the remaining balance would be used to purchase another
portion of land for the defendant and build another house.
7. However, the defendant refused to honor the said MOU
hence the filing of the instant suit. The plaintiff maintained
that the joint ownership of the suit land has been severed
and the defendant only holds the suit land in trust for the
plaintiff. He outlined the particulars of trust thereto majorly
premised on the reason that the plaintiff solely paid the
ELC CASE NO. 110 OF 2015 JUDGMENT Page
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consideration price and financed the improvements thereon
without any contribution from the defendant.
8. In the alternative and without prejudice to the foregoing, the
plaintiff prayed for a declaration that he is the substantial
shareholder of the suit land, all household goods, equipment
and fittings therein and further that if the defendant is
interested in having the suit land and the developments and
improvements thereon, then the defendant be ordered to
pay the plaintiff the full value of the suit land, all household
goods, equipment and fittings or the value of a substantial
share thereof.
9. It was his contention that the defendant’s actions are
inconsistent with the rights of the plaintiff as the owner of
the suit land and very prejudicial to the plaintiff.
10. In conclusion, the plaintiff urged the court to allow his claim
and grant the prayers sought in the Amended Plaint.
Defendant’s Case;
11. The plaintiff’s suit was opposed. The Defendant filed a
Statement of Defence and Counter-Claim dated 13.06.2015,
Amended on 30.05.2019 and Further Amended on
09.07.2019, wherein she denied all the allegations raised in
the amended plaint and put the plaintiff to strict proof
thereof.
12. The defendant stated that she cohabited with the plaintiff as
husband and wife since the year 2010 and during their
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cohabitation, the plaintiff presented her to the rest of the
world as his wife.
13. It is her claim that on or about 17.03.2011, she jointly
purchased the suit land and the erections thereon with the
plaintiff, vide a sale agreement dated 17.03.2011. It is her
contention that she single-handedly sourced and negotiated
the purchase of the suit land and the erections thereon.
14. It is further her claim that she contributed to the purchase of
the suit land hence the joint ownership/registration, which
she maintained conferred upon her proprietary rights over
the suit land. She thus dismissed the averments contained in
paragraph 4A of the amended plaint.
15. She also denied the averments contained in paragraphs 5 of
the amended plaint and put the plaintiff to strict proof
thereof. In further response, it was her claim that the four
bedroomed house and the servant’s quarter were part of the
developments on the suit land at the time of the purchase.
She added that the suit land was purchased together with all
the moveable properties as itemized in Schedule 2 of the
Sale Agreement dated 17.03.2011.
16. It is her claim that in addition to contributing towards the
purchase of the suit land, she has substantially renovated
and made substantial improvements on the entire property
and the erections thereon.
17. She denied the contents of paragraphs 7,8,9 and 10 of the
Amended Plaint including the particulars of trust outlined
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therein and maintained that she does not hold the suit
property in trust for the plaintiff and put the plaintiff to strict
proof thereof.
18. In the Amended Counter-claim, she reiterated the contents
of her defence and maintained that she is entitled to a share
in the property.
19. She sought judgment against the plaintiff/defendant in the
counter-claim for: -
a. The Joint Ownership between the plaintiff and the
defendant over land parcel number ELDORET
MUNICIPALITY BLOCK 14/360 be severed and be divided
equally between the plaintiff and the defendant with the
option of the defendant buying out the plaintiff’s half
share of the property upon valuation of the property.
Trial:
20. The Plaintiff’s case proceeded for hearing on 11.05.2022.
Simon Kipkoech Mining testified as PW1. He informed the
court that he is a Director of Research and he teaches
medical doctors. He adopted his witness statement as his
evidence in chief.
21. He also stated that he knows the plaintiff and the defendant
who were friends.
22. On cross-examination, he reiterated that he knows the
plaintiff and the defendant as friends. It was his testimony
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that he was not aware that the defendant was granted a co-
habitant visa.
23. He also admitted that the suit property is registered in the
joint names of the plaintiff and the defendant and the
property was previously owned by Ugandan Missionaries.
24. It was his testimony that he was not aware under what
arrangements the property was purchased, and that he was
not privy to the sale agreements.
25. He stated that he only became aware that the plaintiff had
taken a mortgage, after the parties had parted ways.
26. When referred to an order of the court, it was his testimony
that the same could not be implemented as the attempted
mediation could not go on.
27. He stated that there was another Memorandum of
Understanding which the parties signed. He however
conceded that it is the mediation agreement that should
prevail. He also confirmed that the MOU was drawn and
signed by Judge Robert K. Limo, who was appointed Judge in
the year 2011.
28. On re-examination, it was his testimony that the defendant
was brought in to fast-track the registration of the property.
Further, that the MOU could not work as the plaintiff had lost
his three houses in Sweden.
29. The Plaintiff testified as PW2. He adopted his witness
statement dated 24.08.2021 as his evidence in chief.
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30. He also produced his Bundle of documents which appears
from page 17 to 62 to be produced as Pexh. 1, a
Supplementary Bundle of Documents which appear on pages
78 to 149 and produced Pexh. 3.
31. He also produced the documents contained in the bundle
dated 30.09.2021 from pages 159 to 252 and which he
produced as Pexh. 4.
32. The Memorandum of Understanding was however marked for
identification (PMFI 5) and the same was to be produced by
the maker of said MOU.
33. On cross-examination, it was his testimony that he knew the
defendant in the year 2010. When referred to the statement
dated 25.09.2017, he confirmed that they had intended to
start a family with the defendant. That he went to Sweden
on 20.03.2011 and the defendant joined him on 16.04.2011.
He acknowledged that he is the one who facilitated the
defendant’s travel to Sweden.
34. He confirmed that he assisted the defendant to have a co-
habitant Visa in May 2012. That the defendant later got a
Habitat Permit in June, 2012 in order to study at a local
university.
35. When referred to a questionnaire on page 234 of the
plaintiff’s bundle on Part D, he confirmed that he has
indicated that he was planning to marry the defendant and
that they had a fixed relation.
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36. He further confirmed that on Part B on the same document,
he had indicated that the defendant was to stay with him in
his house in Sweden and that they also had a Villa in Eldoret.
He admitted that the villa referred to the suit property
herein, also known as L.R. Eldoret Municipality/ Block 14/360.
37. It was his testimony that they purchased the suit property
from Montague Formani and Elizabeth Asta Formani and
they paid the entire purchase of Kshs. 14,000,000/= and
that the money came from the account of the defendant.
38. He further conceded that that the Transfer indicated that
they were joint transferees and that the title deed was
issued indicating that they were joint owners.
39. He testified that the defendant had no money of her own in
her account since she did not have any income and that he
is the one who sent the money to the defendant’s account.
He maintained that the evidence that he sent money to the
defendant’s account is on page 199.
40. He added that he received 1410522 Swedish Kroner on
21.11.2011 and the following day, he sent 810900 Swedish
Kroner to the defendant’s account. That the explanation is
contained on page 98 and 102, which shows that the amount
was transferred to the defendant’s account.
41. He however conceded that he did not have bank statements
to show that the money was sent to the defendant’s bank
account.
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42. When referred to his statements on pages 195 to 222, he
admitted that the same does not indicate that the money
was transferred to the defendant’s account at Imperial Bank.
43. It was also his testimony that the defendant left Sweden in
December, 2012 and came back to Kenya to live in the Villa,
which they jointly owned at Elgon View.
44. He further conceded that they had agreed to equal sharing
of the property or in the alternative one would buy off the
other. On the other hand, it was also his testimony that he
had no intention of selling the house as he has retired and
he wanted to occupy the same since he had obtained a
visiting professorship at Moi University.
45. He denied the averments that he had agreed to buy a ½ an
acre portion for the defendant at Elgon View and build her a
house similar to the Villa.
46. It was his contention that they tried mediation but it did not
work. He however admitted to have signed 6 mediation
settlements and which were finally adopted by a judge. He
stated that it is not true that the only issue he had with the
mediation is that he wanted to impose his own value. It was
his testimony that he did not agree with the mediation
agreements which he signed.
47. It was his claim that the value of the suit property was Kshs.
25,000,000/= as at 2017. That the government valuer gave
the value of the suit property as Kshs. 27,500,000/= as at
February 2021.
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48. He denied the claims made that he is demanding that the
suit property be valued at Kshs. 40,000,000/=. He confirmed
that he has not engaged another valuer to value the suit
property. He however stated that the estimated value to
expect is between Kshs. 40 – 45 million.
49. It was further his testimony that he wants the property to be
sold by way of public auction. That Highlands Valuers
advised him that if the property is sold through bidding, the
price would go up.
50. He went on to state that he had a mortgage of 1,400,000/=
Swedish Kroner with an interest of 2.5%. He however
confirmed he had cleared the mortgage.
51. Further, he testified that he is the one who deposited Kshs.
150,000/=at the offices of Kamau Lagat, which the
defendant used to reinforce the perimeter wall which had
collapsed. He dismissed the averments that the perimeter
wall and internet repairs costs Kshs. 5,000,000/=. He stated
that it would costs about Kshs. 1,000,000/=to put up a three
bedroomed bungalow.
52. In conclusion, it was his testimony that he would go with
what the MOU stated and confirmed that the MOU was
drafted and signed by Robert Limo and at the time of the
same, he was aware that the said Robert Limo was going to
be appointed judge.
53. On re-examination; he restated that his relationship with the
defendant was boyfriend and girlfriend and the said
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relationship ended in December, 2012 and thus lasted only 2
years. He therefore stated that the issue of breach of
promise to marry does not arise.
54. He stated that the defendant joined a tourism college while
in Sweden. When referred to the document at page 234 of
his documents, he confirmed that the same was an
application for a visa but maintained that the said document
is not conclusive evidence that he was going to marry the
defendant. He also admitted that he is the one who tendered
the said document to the Embassy.
55. He also clarified that even though the purchase money came
from the defendant’s account, he is the one who used the
loan proceeds and channeled the same to the defendant’s
account. He informed the court that he had provided the
translated copies of his bank statement as well as the
originals.
56. When referred to the mediation agreements, it was his
testimony that the defendant did not contribute any
monetary contribution. He however admitted that the
defendant has been residing on the suit property,
57. He maintained that the mediation agreement was not
binding upon him and that is why the court allowed him to
proceed with the hearing of the case.
58. On the issue of the MOU, it was his testimony that he
witnessed the defendant sign the MOU of the suit property.
He maintained that the defendant is a trustee of his lawful
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property. That he only purchased the suit property with the
defendant because he was a foreigner and he wanted a local
who knew the country’s laws.
59. He further restated that the loan which he took has not been
cleared. That he has only cleared about 2.5% of the loan.
That he entered into the MOU in order to repay the loan that
he had taken.
60. It was also his testimony that he had not been shown any
evidence that the defendant had used Kshs. 5,000,000/=in
renovating the suit property. He maintained that he is the
one who financed the renovations and that the evidence of
the financing can be found on pages 124 to 149 of his
bundle. He maintained that the said emails had not been
challenged by the defendant.
61. Justice Robert K. Limo testified as PW3. He stated that he is
currently a High Court Judge stationed in Kitale, having
joined the bench in July, 2014. That prior to joining the
bench, he was in private practice, practicing in the name and
style of Limo R.K. & Co. Advocates.
62. It was his testimony that the Memorandum of Understanding
entered on 28.09.2013 between Nils Staffan Wirell and Emily
Chepkosgey, was as a result of an agreement that was
reached by the two parties which he then reduced into the
MOU as per their instructions. He confirmed that the MOU
was in respect of Eldoret Municipality Block 14/360 which
had developments thereon.
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63. He went on to state that the two parties were in a
relationship and were cohabiting together. That the said Nils
Steffan has a problem with a loan which he had secured in
his home country, Sweden. That the plaintiff was desirous of
servicing the loan and he therefore wanted the property to
be sold in order to service the loan. That the concern of the
defendant was however where she was going to live.
64. He confirmed that he listened to both parties and drafted the
MOU, read the same to them and they both signed and he
also counter-signed. He thereafter produced the said MOU as
Pexh. 8 in support of the case.
65. On cross-examination, it was his testimony that the parties
went to him in a sober state of mind and they both executed
the MOU willingly, and nobody exhibited that he/she was
under any pressure.
66. He further stated that the plaintiff had quite a number of
documents that showed that he had taken a loan and the
loan was due. It was also his testimony that the plaintiff was
working on a contract and what he was earning was
insufficient to service the loan. He confirmed having seen
the documents but conceded that he could not recall the
exact amount of the loan due as Kshs. 14 million.
67. He maintained that he was not aware of anything that
happened after he drew and signed the MOU, neither was he
privy to the mediations thereafter.
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68. There was no re-examination. The plaintiff thereafter closed
his case.
69. The defence case proceeded for hearing on 16.09.2025. The
defendant, Emily Chepkosgey testified as DW1. She stated
that she is a businesswoman, a farmer and a Director of
Chamber of Commerce, Uasin Gishu, representing women in
business. She adopted her witness statement as her
evidence in chief.
70. She also confirmed knowing the plaintiff, who was her
husband as they cohabited from the year 2010 to 2016, both
in Kenya and in Sweden.
71. It was her testimony that in the course of their cohabitation,
they acquired properties including the suit property herein
where she has been living since the year 2011 to date.
72. She testified that they entered into a sale agreement and
purchased the suit land jointly. She also confirmed that the
title is in their joint names and they own the suit land on the
ration of 50:50.
73. She produced the documents in her List of Documents dated
14.08.2019 as Dexh. 1 – 24 and the Further List of
Documents dated 21.10.2022 which were marked as Dexh.
25 – 29 respectively. The documents in the list of documents
dated 08.03.2023, which had valuation reports were
produced and marked as Dexh. 30 & 31 respectively.
74. She further stated that the matter had been referred to
mediation and they reached several settlements. That it was
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ruled that they share out 50:50 and they file valuation
reports.
75. It was her contention that they both signed the mediation
agreement and maintained that they did not agree on any
loan repayment issue that would go against the share of
50:50.
76. She reiterated that they had agreed on everything at the
mediation except the valuation. That the Government valuer
put the value of the property at Kshs. 27,000,000/= while
her private valuer put the value at Kshs. 28,000,000/=. She
however stated that she has not seen any valuation report
by the plaintiff.
77. In concluding her evidence in chief, she asked the court to
order that they go as per the mediation report and they buy
themselves out with her first and if she is unable, they sell it
out and share the proceeds. She stated that she would be
willing to pay the plaintiff his share of Kshs. 13,000,000/=
within 60 days or such time as the court may order and that
each party to bear their own costs.
78. On cross-examination, she dismissed the allegations that
they are before court because they did not agree or reach a
conclusion in the matter. She however conceded that she
could not remember of any order by Hon. Odeny J. stating
that there were any unresolved issues by the parties. That
she is also not aware of any orders by Obaga J. that some
ELC CASE NO. 110 OF 2015 JUDGMENT Page
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issues remained unresolved. She stated that Mr. Kizito (now
Judge) presided over the mediation and most issues were
resolved in the mediation.
79. She confirmed that she was aware of the MOU dated
28.09.2013 but averred that the same had been overtaken
by events. It was her testimony that she signed the
document under duress. That she signed the document with
a vague signature.
80. She confirmed that they lived with the plaintiff as husband
and wife since the year 2010. When referred to the
document dated 03.08.2012, she stated that the same was
an application to the Registrar of Marriages in which she
stated that she intended to get married. When referred to
the document dated 07.06.2011, it was her testimony that
she was applying to travel as they intended to marry and
denied the allegation that she was applying to travel for
academic purposes. It was also her testimony that she did
not state that they were married but that she stated that
they lived as husband and wife.
81. When referred to the document dated 28.03.2011, she
admitted that the bank stated that opens a personal account
but conceded that the same did not give the account
number. She further admitted that there was no statement
to show her account details
82. She conceded that from the MOU, it was stated that the
property was purchased through a mortgage facility in
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Sweden. Further, it is also contained in the MOU that once
the property is sold, Kshs. 14,000,000/= would be used to
service the loan in Sweden and the balance of Kshs.
4,000,000/=to be used to buy a ½ acre plot to put up a
matrimonial house for the parties to live in. She also
confirmed that it was contained in the MOU that the suit
property is to be leased out and the money to be used to
settle the loan.
83. On re-examination, it was her testimony that when they
purchased the property, they were living as husband and
wife. That they cohabited from the year 2010 to 2016 and
even went to Sweden on a spousal visa.
84. She reiterated that when they purchased the property in the
year 2011, it was 50:50 contribution. That it was not an issue
where each one of them sourced the funds from.
85. It was her testimony that she had not asked that she be
refunded her contribution because it would negate the 50:50
joint ownership. She maintained that she did not enter into
any agreement to refund the plaintiff any interest. That the
purchase price was Kshs. 10,000,000/= and Kshs.
4,000,000/= for the movables. She admitted that she was
shown that there was a loan over the property.
86. With regards to the MOU, it was her testimony that in view of
the mediation settlement agreements, the MOU was
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overtaken by events. She further reiterated that the property
is jointly registered in their joint names.
87. On conclusion of the re-examination, the Defence thereafter
closed their case.
88. Upon close of the defence case, this court issued directions
on the filing of final written submissions. The plaintiff filed
his submissions together with authorities on 17.10.2025
while the defendant filed her submissions together with
authorities on 12.11.2025 together with authorities, which I
have read and duly considered.
Analysis and Determination:
89. I have carefully considered and reviewed the pleadings
herein, the testimonies by the parties and their witnesses,
the respective exhibits, rival submissions as well as the
mediation settlement agreement in totality.
90. Before delving into the issues for determination, I wish to
restate that this matter was referred to court annexed
mediation process and a partial settlement agreement
reached and which was subsequently adopted as an order of
the court by Hon. Lady Justice M. Odeny J. on 20.11.2019.
The said settlement was reduced into 6 partial mediation
settlement agreements.
91. For clarity purposes, I wish to reproduce the
findings/conclusions in the said partial mediation settlement
agreements as hereunder: -
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92. 1st Partial Mediation Agreement dated 05.09.2019;
i. Land Parcel No. Eldoret Municipality Block 14/360 is
owned by Nils Staffan Wirell and Emily Chepkosgey
ii. There is a title deed in respect of the said parcel of land
issued on 21.04.2011 in the names of Nils Staffan Wirell
Swedish PP No. 90750195 and Emily Chepkosgey ID No.
14724083 measuring approx. 0.2108Ha.
iii. The property has a perimeter wall in three and ¼ sides
with a main house with 4 bedrooms and a 2-bedroom
servants’ quarters.
93. 2nd Partial Mediation Agreement dated 05.09.2019;
i. That the parties entered into a purchase/sale
agreement dated 17.03.2011 with the former owners
Montague Forman and Elizabeth Asta Foreman to
purchase the house/land parcel No. Eldoret Municipality
Block 14/360.
ii. The initial deposit of Kshs. 3,000,000/= was sent by Nils
Staffan Wirell to Emily Chepkosgey who then paid the
vendors.
iii. The entire purchase price was Kshs. 10,400,000/=
iv. That out of the balance of Kshs. 7,400,000/= the
plaintiff paid Kshs. 400,000/=
v. The parties can no longer live together and cannot both
live in the house herein.
94. 3rd Partial Mediation Agreement dated 09.09.2019;
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i. The suit land being land parcel No. No. Eldoret
Municipality Block 14/360 be valued by a neutral valuer.
95. 4th Partial Mediation Agreement dated 11.09.2019;
i. The joint ownership between the plaintiff and the
defendant over land parcel No. Eldoret Municipality
Block 14/360 be severed and partitioned equally
between the plaintiff and the defendant.
ii. The defendant to have the first option to buy out the
plaintiff upon valuation, within a period to be agreed, at
market price.
iii. The plaintiff to exercise the 2nd option to purchase,
upon default of the defendant in clause (2) above. The
option to be exercised within a period to be agreed and
at market price upon valuation by independent valuer.
96. 5th Partial Mediation Agreement dated 11.10.2019;
i. The valuation report will give guidance on the market
price for purposes of starting the process of
negotiations on buying each other out.
ii. The parties agree that the county valuer Uasin Gishu
County to carry out valuation with each party being at
liberty to bring their own valuers.
iii. The parties agree that the valuation be done within 3
months from today and the report be filed in court
within the said period.
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iv. The parties to share the government valuer’s costs
equally.
v. The parties to shoulder the costs of their respective
valuers.
vi. The timelines for buying each other out shall be set by
the advocates for the parties, within 21 days of the
Report of the County Valuer being filed and parties
notified.
97. 6th Partial Mediation Agreement dated 17.10.2019;
i. The County Surveyor with title documents to facilitate
valuation
ii. Parties and their advocates be at liberty to attend the
valuation.
98. All the 6 partial mediation settlement agreements were
adopted by the court (Hon. M. Odeny J.) on 20.11.2019 as
orders of the court in partial determination of the dispute
between the parties herein.
99. However, at the conclusion of the mediation process, there
were some issues which the parties were unable to agree on
and thus remained unresolved and which the mediator, vide
the Mediator’s Confidential Report dated 17.10.2019,
referred to the court for determination.
100. Thus, in view of the above, this court’s determination is only
limited to the unresolved issues which the parties were
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unable to agree on and the same will therefore form the
basis of this court’s issues for determination: -
a. Whether there is a loan due and whether the said loan
will be taken into account if and when the property is
sold.
b. What was each party’s contribution and whether the
same should be taken into account if and when the
property is sold.
c. Who should bear the costs of the suit.
Whether there is a loan due and whether the said
loan will be taken into account if and when the
property is sold ;
101. It is the plaintiff’s case that there is a loan due and owing.
That he secured a loan facility of 1410522 Swedish Kroner
and transferred 810900 Swedish Kroner to the defendant’s
account, which funds were used in purchasing the property.
102. It is his contention that he single-handedly purchased the
property and even financed the renovations thereon without
any contribution from the defendant at all.
103. In support of his averments, he produced the translated
bank statement as well as the original statements as
contained in pages 195 – 222. He also heavily relied on the
MOU produced by PW3 as Pexh. 8 in further support of his
claim.
ELC CASE NO. 110 OF 2015 JUDGMENT Page
23
104. In the end, he urged the court to be guided by the
agreement contained in the MOU and to direct that the suit
property be sold and the proceeds therein to be used in
settling the loan due and owing to the Swedish Bank. It is
further his claim that any balance remaining should then be
divided between the defendant and himself.
105. The defendant on the other hand maintained that the MOU
heavily relied upon by the plaintiff as the basis of the
existence of the loan and the same being taken into account
in the event of the sale of the suit property had been
overtaken by events upon the filing of the suit herein and
further by the Mediation Settlement Agreement reached by
the parties and duly adopted by the court.
106. Before delving into the merits of this issue, it is important for
this court to consider the effect of the said issue in light of
the existence of the Mediation Settlement Agreements, and
in particular the 4th partial mediation settlement agreement.
107. The 4th partial mediation settlement agreement provided
that the joint ownership between the plaintiff and the
defendant over land parcel No. Eldoret Municipality Block
14/360 be severed and partitioned equally between the
plaintiff and the defendant.
108. In essence therefore, the effect of allowing this issue and
directing that the loan be taken into account if and when the
property is sold would amount to varying the mediation
ELC CASE NO. 110 OF 2015 JUDGMENT Page
24
order above, which directed that the same be partitioned
equally.
109. Further and without prejudice to the foregoing, although
from the testimony of PW3 and the statement contained in
pages 195 to 222, it is clear that there may have been a
loan, the purpose of the said loan is not clear. Further, on
cross-examination, the plaintiff conceded that the
statements produced does not indicate that the money was
transferred to the defendant’s account in Imperial Bank.
110. In view of the foregoing, it is the finding of this court that the
effect of determining whether or not there was a loan taken
and whether the same should be taken into account if and
when the suit property is sold would amount to varying
and/or reviewing the mediation settlement agreement duly
adopted as an order of the court on the 20.11.2019 and the
same is therefore not tenable.
What was each party’s contribution and whether the
same should be taken into account if and when the
property is sold;
111. The second issue seeks to determine the contribution made
by each of the parties towards the purchase of the suit
property and whether the same should be taken into account
if and when the property is sold.
112. It is the plaintiff’s claim that he solely financed the purchase
of the suit property and the developments therein and
ELC CASE NO. 110 OF 2015 JUDGMENT Page
25
further financed the renovations thereto. That he took out a
loan facility in his country Sweden, transferred the funds to
the defendant’s bank account which were then used for the
payment of the purchase price. He stated that the defendant
did not make any contribution towards the purchase of the
suit property since she had no income at the time of the
purchase.
113. The defendant on the other hand maintained that she made
an equal contribution towards the purchase of the suit
property hence the registration of the property in their joint
names. It was her testimony in court that the source of the
funds was contributed by each party.
114. I have noted that the issue of contribution made by each
party was dealt with in the 2nd partial mediation settlement
agreement, wherein it was stated that the entire purchase
price was Kshs. 10,400,000/-. That the initial deposit of Kshs.
3,000,000/= was sent by Nils Staffan Wirell to Emily
Chepkosgey who then paid the vendors, leaving a balance of
Kshs. 7,400,000/=
115. It was further agreed that out of the balance of Kshs.
7,400,000/=the plaintiff paid Kshs. 400,000/=.
116. It is important to note that both the plaintiff and the
defendant together with their respective advocates were
present in the said session and they duly signed the
mediation agreement in partial settlement of the dispute
herein. Mediation is a process controlled by the parties
ELC CASE NO. 110 OF 2015 JUDGMENT Page
26
themselves and the mediator only acts as a neutral party to
assist the parties in resolving their dispute.
117. The plaintiff cannot therefore run away from the mediation
settlement agreements which he fully participated in and
duly signed and state that the same is not binding upon him
or that he does not agree with the same.
118. Section 36 of the Civil Procedure (Court Annexed Mediation)
Rules, 2022 provides as follows: -
36. Enforcement of settlement agreements
(1) Upon the adoption of a settlement agreement, the
court shall issue an order or decree in the terms of the
agreement.
(2) A decree and an order arising from the adoption of a
settlement agreement shall be enforceable as any other
order or decree of the court.
(3) No appeal shall lie against a decree or order of the
Court arising from a settlement agreement.
(4) …
119. In the case of Alios Finance Kenya Limited v Country
Farms Limited (Civil Appeal E005 of 2020) [2022]
KEHC 11012 (KLR) the court described the effect of the
adoption of a Mediation Settlement Agreement by the Court,
in the following terms:
“Any agreement filed with the Deputy Registrar
or Magistrate or Kadhi as the case may be shall
ELC CASE NO. 110 OF 2015 JUDGMENT Page
27
be adopted by the Court and shall be enforceable
as a Judgment or order of Court.
Notably, once a mediation agreement is signed, it
becomes final and binding on the parties.
Mediation agreements were in the nature of
consents. It is for that reason that this court
considered the consequences and implications of
entering a consent.”
120. In the premises therefore, I find that this issue was
sufficiently handled by the 2nd Partial Mediation Settlement
Agreement and varied by the 4th Partial Mediation
Settlement Agreement which resolved that the property be
partitioned equally between the plaintiff and the defendant
and determining the same would amount to varying the
order of the court issued on the 20.11.2019 without
sufficient basis. This issue is therefore untenable.
121. In conclusion, I wish to reiterate the binding nature of
Settlement Agreements arising out of mediation process.
The plaintiff has not provided any basis on the grounds of
fraud, collusion or an agreement contrary to the policy of the
court, to warrant the setting aside of the settlement
agreements and disregarding the directives therein.
ELC CASE NO. 110 OF 2015 JUDGMENT Page
28
Who should bear the costs of the suit;
122. The general rule is that a successful party should ordinarily
be awarded costs of the suit unless the court, for good
reason, directs otherwise.
123. However, given the nature and circumstances of the dispute
herein, I will direct each party to bear their own costs of the
suit.
CONCLUSION:
124. In conclusion, it is the finding of this court that the dispute
herein as contained in the Amended Plaint dated 02.05.2019
and the Further Amended Defence and Counter-claim was
duly determined vide the Mediation Settlement Agreements
adopted as orders of the court on 20.11.2019.
125. Consequently, parties are hereby directed to fully comply
with the provisions contained in the 4th and 5th Partial
Settlement Agreements dated 11.09.2019 and 11.10.2019
respectively within 90 days from the date of this judgment.
126. Each party to bear their own costs of the suit.
127. It is so ordered.
DATED, SIGNED and DELIVERED virtually at ELDORET on
12TH day of FEBRUARY, 2026.
HON. C. K. YANO
JUDGE
ELC CASE NO. 110 OF 2015 JUDGMENT Page
29
In virtual presence of; -
Mr. Makokha for Plaintiff.
No appearance for Mr. Yego for Defendant.
Court Assistant – Laban
ELC CASE NO. 110 OF 2015 JUDGMENT Page
30
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