Police and land officers have been drawn into a court dispute between two private developers fighting over ownership of a Sh1.6 billion property in Loresho, Nairobi.
Beba Freight Company Limited filed the case, seeking to regain ownership of the land after it was sold for Sh15 million to two foreign investors by individuals who were allegedly impersonating its directors 14 years ago.
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The sellers also had ownership documents from the Ministry of Lands and sold the land to Bharat Ramji Manji and Young Moon Choi, two foreigners, in 2011.
The foreigners then sold the land to a local company, Landmark Freight Services Limited, owned by Nakuru businessman Samuel Mburu Kamau.
The parties accuse one another of having a forged title deed. The Directorate of Criminal Investigations is probing to determine who holds the legitimate title deed.
Court documents indicate that Mr Kamau, trading as Landmark, purchased the property from Mr Manji and Mr Young in 2018 for Sh160 million. The sellers claim to have purchased the property in 2011 from Beba Freight directors Robert Muthui and Erick Kiptanui for Sh15 million.
However, in its claim, Beba Freight argues that the aforementioned sellers, Muthui and Kiptanui, were not its directors and describes them as strangers.
Court papers show that the company's current directors are Bernard Otieno Omallo, John Gitau Ngumi and Atek Otech Richard, as set out in the CR12 document.
Mr Omallo claims that the land belongs to Beba Freight, having been allocated to the company on July 6, 1995. He claims that, after receiving the letter of allotment, the company erected a perimeter wall and has been paying land rent and rates ever since.
He contends that, in March 2024, Landmark, together with Mr Manji and Mr Young, wrongfully invaded the land and started building structures, thereby claiming ownership. He says this move was unjustified.
In his claim, Mr Omallo argues that the defendants illegally destroyed developments on the land, including the perimeter wall, thus depriving Beba Freight of its use and quiet enjoyment.
He highlights discrepancies in the property transfer documents and contends that the defendants have violated Article 40(6) of the Constitution, which states that the right to property is not protected if the property has been found to have been unlawfully acquired.
However, Landmark's director, Mr Kamau, claims that his company is the registered owner of the property, based on its purchase from Mr Manji and Mr Young in 2018.
Mr Kamau explains that the land was advertised for sale by the vendor’s agents, Kinyua Koech Limited. Before the purchase, he says they conducted an official title search with the Ministry of Lands, which confirmed the registration of the land in question to Mr Manji and Mr Young.
He also contends that the vendor provided Landmark with completion documents, including rates and rent clearance certificates. Landmark paid the full purchase price of Sh160 million, which was acknowledged by the two sellers, and vacant possession was granted.
Mr Kamau reiterates that, after the sale, Landmark conducted an official after-sale search, which confirmed that the transfer had been successfully completed. Landmark later charged the property title with Kenya Commercial Bank as collateral for a Sh150 million loan in July 2020.
Mr Mburu claims that the firm sought to examine Beba Freight’s title and that it was confirmed to be a forgery. The matter was reported to the DCI, who referred it to the Land Fraud Investigation Unit.
Pending the outcome of the case, the Environment and Land Court has ordered that no party should interfere with or transfer the land to a third party until the dispute is resolved.
In her orders, Justice Christine Ochieng also directed the Chief Land Registrar to register an inhibition order against the property until the dispute is resolved.
Beba Freight had requested that the court issue a permanent injunction to restrain the defendants from interfering with the property, and that the company be declared the rightful and legal owner.
The company also sought an eviction order against the defendants, cancellation of Landmark’s title, and rectification of the land registry records to restore Beba Freight as the sole proprietor of the land in question.
“I find that an entry of inhibition to restrict further dealings or transfer of the suit land and maintenance of status quo to stop further developments would suffice pending the determination of the suit,” said Justice Ochieng.
However, Beba Freight has initiated contempt of court proceedings against the defendants for allegedly disobeying an order to maintain the status quo.
“The defendants have continuously breached the express orders by depositing materials, equipment, and engaging in illegal construction activities on the suit property. Their illegal actions are calculated to significantly alter the character of the suit property, defeat the plaintiff’s interest and render nugatory the instant suit,” says Beba Freight's lawyer, James Oketch.
Additionally, he wants the Chief Land Registrar to be summoned to explain why he should not be punished for contempt due to his failure to register the inhibition against the property as ordered.
In his filings in the case, the Principal Land Registrar, Mr Wanderi Mark Muigai, explains that the contested land has a 99-year lease from July 1, 1995, according to ministry records.
He states that this was registered in favour of Beba Freight on February 14, 2013, and that by a transfer instrument dated April 30, 2013, the land was transferred to Mr Manji and Mr Young for the sum of Sh15 million. The transfer was duly registered on May 13, 2013.
The officer further contends that the letter of allotment and the certificate of title held by Beba Freight are fraudulent, and therefore its claims should not be considered, as it does not possess any proprietary rights over the land in question.
The Director of Land Administration, Mr Gordon Ochieng, also states that he was unable to trace correspondence file number 303167, said to have generated the title produced by Beba Freight.
