Client Gets Back Sh3M After 32-year Land Fight

An organisation that purchased 493 pieces of property in Kahawa, Nairobi, 32 years ago has been ordered to repay the Sh2.7 million it got from the customer but failed to transfer ownership of the properties.

Mwihoko Housing Corporation was ordered by Justice Christine Meoli to repay Sh2,745,000 to Marura Dandora Enterprises and pay interest calculated at the court’s standard rate of 12 percent from the date the dispute was brought in court until complete 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 complaint in court that Mwihoko Housing had falsely represented itself as having the authority to transact in the plots at the time. 

Marura used money earned by its 600 members to buy the property in 1989.

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 plots were not owned by Mwihoko Housing, who was at the time embroiled in a legal battle over their ownership, according to information provided to the court.

Marura claimed that Mwihoko Housing had violated its agreement to transfer ownership of the plots, resulting in a loss of money for Marura and causing strife among the buyer’s leaders and members.

It presented a collection of receipts and copies of the agreements at the center of the claim to substantiate its assertion. Mwihoko Housing refused to transfer ownership of the plots in spite of requests.

According to court documents, an agreement dated August 8, 1989, stated that Mwihoko Housing Company would sell 200 plots from land parcel L.R. No. 10902/1 in South Ruiru Township (Kahawa Kimbo) to Marura Enterprises for Sh13,500 each.

In order to give Marura access to a total of 493 plots, the parties to the prior agreement entered into a supplemental agreement in April 1990 for the purchase of an additional 293 plots from the same property block.

13 of the 480 plots allocated for commercial use cost Sh20,000 each, while the remaining 480 residential plots cost Sh12,500 each.

Furthermore, it was claimed that Marura gave Mwihoko Housing a total payment of Sh2,745,000 under the two agreements.

Due to Mwihoko Housing’s violation of the agreements, Marura suffered financial loss and developed a lack of confidence between its leaders and members.

A deposit of Sh450,000 was required at contract signing in addition to the agreed-upon total purchase price of Sh2.7 million, which Marura instantly met.