Home Court News Court awards prime Muthaiga land to mount pleasant, cancels title held by Equity bank CEO

Court awards prime Muthaiga land to mount pleasant, cancels title held by Equity bank CEO

by Faith Karanja

The Environment and Land Court in Nairobi has awarded a prime 4.1-acre Muthaiga property to Mount Pleasant Limited after a 15-year ownership dispute.

The court also cancelled the title held by Equity Group Holdings Plc Chief Executive Officer Dr. James Njuguna Mwangi and his associate Jane Wangui Mundia.

Justice O.A. Angote ruled that Mount Pleasant Limited is the lawful owner of the property and declared the defendants’ title invalid from the beginning.

The ruling brings an end to a long-running Muthaiga land ownership dispute involving one of Nairobi’s most valuable residential areas.

Court declares mount pleasant the lawful owner

Justice Angote delivered the judgment virtually and found that Mount Pleasant Limited had a valid claim over the property.

The disputed land consists of L.R. Nos. 214/20/1/1 and 214/20/2, which were later combined into L.R. No. 214/832.

Court records show that former President Daniel Arap Moi sold the land to Arthur and Margaret Magugu in 1982.

The judge ruled that Moi no longer had ownership rights to transfer the property after the 1982 sale.

“Having conveyed the two parcels to Arthur Kinyanjui Magugu and Margaret Wairimu Magugu, H.E. Daniel Moi no longer retained any proprietary interest capable of being conveyed,” Justice Angote stated.

Disputed property transactions

Mount Pleasant Limited told the court that it bought the land from the Magugus in 2006 for KSh 130 million.

The company presented registered documents to support its ownership claim.

On the other hand, Dr. Mwangi and Ms. Mundia argued that they bought the property from Moi in 2012 for KSh 320.6 million.

They later received a title deed registered in their names in 2019.

However, the court found that they could not acquire valid ownership from a person who no longer held rights over the land.

Court rejects defence evidence

The defendants presented a forensic report that questioned Mount Pleasant’s documents.

Justice Angote rejected the report, stating that it relied on photocopies and lacked enough technical support.

The judge said expert evidence must be considered alongside all other evidence before the court.

The court also faulted the defendants for failing to conduct proper due diligence before purchasing the property.

Their advocate, Mary Wangui Kiarie, told the court that she did not personally conduct the official land search.

Instead, she assigned the task to a clerk.

The judge ruled that this weakened their claim that they bought the property as innocent purchasers.

Land registration irregularities

The court also identified problems in the property registration process.

Evidence from the Chief Land Registrar showed inconsistencies in the registration records.

The court found that some register entries lacked signatures and that key documents supporting the title transfer were missing.

Justice Angote directed the Chief Land Registrar to cancel the title issued to Dr. Mwangi and Ms. Mundia.

The court ordered the land records to reflect Mount Pleasant Limited as the rightful owner.

Court orders eviction and awards damages

The court issued a permanent injunction preventing Dr. Mwangi and Ms. Mundia from dealing with the property.

It also ordered them to vacate the land within 30 days.

Police officers were authorised to assist in enforcing the eviction order if required.

Additionally, the court awarded Mount Pleasant Limited KSh 10 million in damages for trespass.

Justice Angote considered the property’s location in Muthaiga and its estimated value of nearly KSh 1 billion.

The court dismissed the defendants’ counterclaim and awarded costs to Mount Pleasant Limited.

Impact of the Muthaiga land ruling

The ruling highlights the importance of conducting proper due diligence during property transactions.

It also raises concerns about gaps in Kenya’s land registration system.

The decision reinforces the principle that ownership disputes must follow lawful transfer procedures.

Unless the decision is overturned on appeal, Dr. Mwangi and Ms. Mundia will have to surrender one of Nairobi’s most valuable properties.

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