Harambee Sacco marred in land fraud of two plots in Nairobi belonging to a woman

Unscrupulous officials at the Harambee Co-operative Savings and Credit Society Limited (Harambee Sacco) in cahoots with a privately owned entity have been cited by a High Court in Nairobi for masterminding a land fraud scheme to dispossess a woman two prime plots in Nairobi using fake documents.

In a landmark ruling, Environment and Land Court Judge Justice Lucy Mbugua invalidated title deeds of two parcels of land fraudulently issued in favour of Mild Steel Engineering Works Limited after it emerged the acquisition of the disputed property was fraudulently facilitated by Harambee Sacco officials.

In her ruling dated December 5, 2024, Justice Mbugua cancelled the title deed issued to Mild Steel Engineering Works and declared Meresia Akeyo Obara the lawful owner of the two prime plots in Greenfield Estate in Embakasi sub-county.

In the suit, Obara had sued Harambee Sacco as the first defendant, Mild Steel Engineering Works Limited as the second defendant and Mellitus Oluoch as the third defendant respectively.

Oluoch is the director of Mild Steel Engineering Works Limited.

The disputed parcels are registered as LR No. Nairobi Block 82/4915 and Nairobi Block 82/4918.
In her ruling, Justice Mbugua decreed that Obara had proved to the court beyond doubt that Nashon Otieno Wanjir, a former member of Harambee Sacco, now deceased, had made it known to the Harambee Sacco that he had transferred the two parcels to the woman.

Further, Obara demonstrated that Mild Steel Engineering Works Limited was refunded part of the money it had paid to Wanjir for the purchase of the plots.

Obara also said that she had paid the full purchase price of the properties.

“To this end I find that the plaintiff (Obara) has proved her case on a balance of probabilities. I therefore enter judgement for the plaintiff against the defendants jointly and severally as follows; A declaration is hereby issued to the effect that the plaintiff is the lawful owner of properties known as LR No. Nairobi Block 82/4915 and Nairobi Block 82/4918. ii) An order is hereby issued cancelling any title issued to the second defendant in respect of parcel LR No. Nairobi Block 82/4915 and Nairobi Block 82/4918, and instead, the said parcels are to be registered in the name of the plaintiff. iii) An order of injunction is hereby issued restraining the 2nd and 3rd defendants, their servants or agents from developing, transferring, charging, alienating, occupying or in any other manner howsoever interfering with the properties comprised in LR No. Nairobi Block 82/4915 and Nairobi Block 82/4918. iv) The plaintiff is awarded costs of the suit as against the defendants jointly and severally. The plaintiff is also awarded interests on costs at court rates. Court may deem fit and expedient to grant in the circumstances of this case.” Justice Mbugua ruled.

Evidence tabled in court showed that the two plots were allocated to Wanjir as a member of Harambee Sacco.

The Sacco had acquired the land and sub-divided it to its members.

“It was therefore very ingenuine of Harambee Sacco to have acted in cahoots with Mild Steel Engineering Works to process a title using unscrupulous documents.” Justice Mbugua ruled.

According to documents filed in court, Obara told the court the two plots were hived from a larger parcel known as Greenfields site and service scheme registered in the name of the Sacco.

Obara argued that as at March 1996, Wanjir still owed the Sacco Sh174,000, which had to be paid before he could take full ownership of the plots.

According to her evidence, Obara said they settled for Sh404,000 as purchase price for the two plots after which she paid Ksh174,000 directly to the Sacco through a bankers cheque dated March 8, 1996 and the balance to Wanjir in tranches of Ksh150,000, Sh324,000 and Ksh80,000.

After selling the plots, Wanjir formally introduced her to the Sacco as the purchaser and instructed the saving society to transfer the land to Obara.

Thereafter, Obara followed up her title and the Sacco officials allegedly informed her that it was being processed.

However, in January 2004, she learnt that Mild Steel Engineering Works Limited was pursuing the same plots in collusion with some unscrupulous society officers.

Obara told the court that in total disregard of her rights as the owner of the properties, and through fraudulent transactions of the Sacco, Mild Steel Engineering Works Limited and Mellitus Oluoch, the society processed a transfer of the land in favour of the steel engineering firm.

Oluoch, the director of Mild Steel Engineering, said he purchased the two plots from Wanjir in 1995 after paying Ksh240,000.

He argued that before purchasing the plots, he had confirmed with the Sacco that the plots belonged to Wanjir.

He thereafter, signed an agreement for sale and Wanjir’s advocates wrote to Harambee Sacco authenticating the sale.

An advocate who testified in the matter said the transaction was later cancelled and Wanjir refunded the Ksh17,500, accompanied with a handwritten letter dated May 31, 1996.

“Reading the said letter in the context of the evidence provided, I am of the view that the Mild Steel Engineering had indeed declined to pay the balance until a transfer was effected.

“This evidence that the engineering firm refused to pay the balance is also supported by the deceased’s letter dated March 31, 1996.” Justice Mbugua ruled.

In her ruling, the judge affirmed that Obara had proved her case and she therefore entered judgement in her favour against the defendants (Harambee Sacco, Mild Steel Engineering Works and Oluoch) jointly and severally.

Consequently, the court directed the cancellation of any title issued to the steel engineering firm and ordered the parcels to be registered in the name of Obara.

Besides awarding legal fee costs in favour of Obara against the accused, the judge further barred the steel firm and its director, Oluoch, their servants or agents from developing, transferring, charging, alienating, occupying or in any other manner howsoever interfering with the properties comprised in LR No. Nairobi Block 82/4915 and Nairobi Block 82/4918.