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Blow as Kamuthi Farmers Co-operative Society loses fight for Sh10 billion land
The tussle 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

Kamuthi Farmers Cooperative Society Limited has lost an appeal in court against Nairobi city county government in pursuit of 176 acres of land in Kiambu worth Ksh 10 billion, a matter which has prolonged in court for 33 years.
The land is part of LR No. 71/7 which has been developed by enacting 600 residential houses, a sewage treatment plant, a public market, primary school, a public playground and public administration offices together with infrastructure.
In their ruling, Court of Appeal judges David Musinga, Sankale Ole Kantai and Asike Makhandia upheld 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 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 .”
They relied on precedent set in the case of Macharia Mwangi and 87 others versus Davidson Mwangi Kagiri (2014) where the Court of Appeal stated that “constructive trust is an equitable concept which acts on the conscience of the legal owner to prevent him from acting in an unconscionable manner by defeating the common intention…”
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 in to agreement under clause 3 of the agreement the defendant was pending completion of the conveyance authorised to enter the land and do all manner 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.
Subsequently, the consent that was recorded in court was expressed, agreed and recorded that a formal survey of LR No. 71/7 be undertaken with a view of subdividing the same into two portions of 154.5 acres in favour of the defendant and 260.5 acres in favour of the plaintiff.
In their claim, Kamuthi averred 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 a 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, and later Kamuthi filed a suit in a bid to evict Nairobi City County and by the extension of people who had purchased the houses in the contested land.
Kamuthi Cooperative filed a suit on December 23, 1991, against Nairobi City Commission (today 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.
After a long battle in court, the case being handled by many judges, it was the cause of time and transfer where Justice Komingoi heard and concluded it in 2020.
In her ruling, 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 and the transfer of the two parcel to Kamuthi Cooperative Farmers Society was illegal since they held the two portions in trust of Nairobi City Council ordering Kamuthi to transfer the two parcels of land to Nairobi County.
The trial judge considered the case made by both sides by relying on on the witness statements and affidavits from senior managers of Kahawa Farmers Cooperative Society, chief officer for lands surveyors, land valuers, surveyors who were part of the transaction deal, company secretary from the plaintiff side and witnesses who maintained that there was a deal between Kahawa Farmers Cooperative Society and the respondent.
In her judgement that was delivered on June 4, 2020, the judge dismissed the appellant’s case by giving orders that,
“A declaration is hereby issued that the defendant is pursuant to the sale agreements between itself and Kahawa Farmers Cooperative Society Limited entitled to be registered as proprietor of the two portions measuring approximately 154.5 acres and 21.238 acres out of LR No 71/7,” she said.
The judge added that the sale transaction of 21.238 acres between the defendant and Kahawa Farmers Cooperative Society Limited between 1979 and 1981 is valid and that the defendant is entitled to be registered as the proprietor of the said portion out of LR No. 71/7.
She also declared that Kahawa Farmers Cooperative Society Limited held the portions of 154.5 and 21.238 acres in trust for the defendant and the conveyance of land reference number 71/7 to the plaintiff absolutely was void.
The judge also stated that, “an order is hereby issued compelling the plaintiff to excise and transfer the portions of 154.5 acres and 21.238 acres out of land reference No. 71/7 in occupation by the defendant.”
The judge further ordered the Deputy Registrar of the High Court to execute the necessary documents vesting the said portions of land in the defendant.
Unsatisfied, they filed an appeal against the decision of the High Court.
In conclusion, Kamuthi held that Kahawa Farmers held the two parcels of land in trust for the respondent and the conveyance of the whole parcel of land to the appellant in 1989 was void for all purposes and these reasons dispose of all the grounds of appeal.