Buyer gets back Sh3m after 32-year land fight
A land-buying company has been ordered to return Sh2.7 million it received from a client 32 years ago for the sale of 493 plots in Kahawa Nairobi but failed to transfer ownership of the properties.
A land-buying company has been ordered to return Sh2.7 million it received from a client 32 years ago for the sale of 493 plots in Kahawa Nairobi but failed to transfer ownership of the properties.
Justice Christine Meoli ordered Mwihoko Housing Company to refund Marura Dandora Enterprises a sum of Sh2,745,000 and pay interest calculated at court rates (12 percent) from October 16, 1991, when the dispute was filed in court until full payment.
The court found that Mwihoko Housing failed to transfer ownership of the plots as provided in the sale agreements signed in 1989 and despite receiving funds from Marura.
"It is undisputed that despite making payments to Mwihoko Housing, Marura Enterprises is yet to receive the plots that were the subject of the two agreements," said Justice Meoli.
Marura's complaint in court was that Mwihoko Housing at the time misrepresented itself as having the necessary capacity to transact in the plots. Marura purchased the land in 1989 using money raised by its 600 members.
Mr Joseph Kariuki Gathara, a director of Marura Enterprises, testified that Mwihoko Housing did not own the property it purported to sell to Marura.
The court heard that Mwihoko Housing did not own the plots and was at the time embroiled in litigation over ownership of the suit properties.
Marura said Mwihoko Housing breached its obligation to transfer ownership of the plots and occasioned a financial loss to Marura and caused discord among officials and members of the buyer.
It tendered a bundle of receipts and copies of the agreements at the heart of the cause of action to support its claim. Despite demands being made, Mwihoko Housing failed to give ownership of the plots.
Court papers indicate that by an agreement dated August 8, 1989, Mwihoko Housing company agreed to sell to Marura Enterprises 200 plots out of land parcel L.R No.10902/1 in South Ruiru Township (Kahawa Kimbo), for Sh13,500 each.
In April 1990 the parties entered into a supplemental agreement to the earlier one for the purchase of an additional 293 plots out of the same land parcel, thus entitling Marura to a total of 493 plots.
Some 480 plots were for residential purposes each costing Sh12,500 and 13 plots were designated for commercial purposes at Sh20,000 each.
It was further said that under the two agreements, Marura paid to Mwihoko Housing a total sum of Sh2,745,000.
Mwihoko Housing in breach of the agreements failed to deliver the plots to Marura thereby occasioning financial loss and causing mistrust between its officials and members.
The total purchase price was agreed at Sh2.7 million and a deposit of Sh450,000 was to be paid on signing of the agreement, a condition with which Marura complied immediately.
