Kamuthi Farmers Cooperative Society Limited lost 176 acres of land in Kiambu worth Ksh 10 billion to Nairobi City County. The Sacco lost an appeal in court against the county government in pursuit of the land in a matter that has been prolonged in court for 33 years.
Court of Appeal judges David Musinga, Sankale Ole Kantai, and Asike Makhandia upheld the decision by High Court judge Loice Komingoi, saying there is sufficient evidence to uphold the earlier ruling, which was delivered on June 4, 2020.
The Sacco had purchased the land from Kahawa Farmers Cooperative Society Limited, but the judges stated that it is in evidence that in 1989, “Kahawa Farmers Cooperative Society Limited transferred the entire land LR No. 71/7, measuring 415 acres, to the plaintiff without excising off the two portions to the defendant. The defendant is neither a trespasser nor a licensee on the suit property, as it was put in possession by Kahawa Farmers Cooperative Society Limited.”
The contested land is part of LR No. 71/7, which has been developed with 600 residential houses, a sewage treatment plant, a public market, a primary school, a public playground, and public administration offices, along with infrastructure.
The tussle between the two parties arose when the City County of Nairobi purchased 154.4 acres under LR No. 71/7 at Ksh 135,000 and, on March 26, 1980, bought a further 21.238 acres at Ksh 425,000 from Kahawa Farmers Cooperative Society Limited.
The first parcel was developed into a housing scheme, and the second parcel into a sewage plant to serve the developed estate.
The parties entered into an agreement, and under clause 3 of the agreement, the defendant, pending completion of the conveyance, was authorized to enter the land and do all manner of things necessary for the proposed development of LR/71/7 as a housing estate, provided that unless the parties agreed otherwise, such activity would be confined to an area not exceeding 154.5 acres.
The consent recorded in court was expressed, agreed upon, and recorded that a formal survey of LR No. 71/7 be undertaken with a view of subdividing the same into two portions: 154.5 acres in favor of the defendant and 260.5 acres in favor of the plaintiff.
Kamuthi had claimed that they are the registered owner of the property known as LR No. 71/7, measuring 415 acres, which was succeeded by Kahawa Farmers Cooperative Society Limited, which was liquidated via Gazette Notice No. 3864 by the Commission of Cooperatives. Upon liquidation, the suit property was handed to Kamuthi through conveyance dated December 20, 1989, to hold the same in trust.
After the liquidation, Kahawa Farmers Cooperative Society Limited divided into two groups, namely Kamuthi Cooperative Society Limited and Kiamumbi Cooperative Society Limited. Later, Kamuthi filed a suit in a bid to evict Nairobi City County and, by extension, the people who had purchased houses on the contested land.
Kamuthi Cooperative filed a suit on December 23, 1991, against Nairobi City Commission (today’s Nairobi City County government), claiming that at all material times, they were the registered proprietor of the property LR No. 71/7 (the suit property) measuring 415 acres and that they were the successor of Kahawa Farmers Cooperative Society Limited. They claim the defendants occupied the said portions illegally.
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The case has been in court for a long time, causing delays, and it was finally concluded when Justice Komingoi heard and concluded it in 2020.
The judge found that Kahawa Farmers Cooperative Society Limited had sold the two portions, measuring 154.5 and 21.238 acres, to the then Nairobi City Council. The transfer of the two parcels to Kamuthi Cooperative Farmers Society was deemed illegal since they held the two portions in trust for Nairobi City Council. The judge ordered Kamuthi to transfer the two parcels of land to Nairobi County.
The trial judge considered the case made by both sides by relying on witness statements and affidavits from senior managers of Kahawa Farmers Cooperative Society, the chief officer for lands surveyors, land valuers, surveyors who were part of the transaction deal, and the company secretary from the plaintiff side. The witnesses maintained that there was a deal between Kahawa Farmers Cooperative Society and the respondent.
By Our Reporter.
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