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Court of AppealDismissedNot stated in the judgment· [2025] KECA 105 (KLR)

Geoffrey Tenai v Ragbhir Singh Sidhu & 5 others

Court of Appeal of Kenya
24 January 2025
6,239 words in judgment
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The bottom line

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Kenya's Court of Appeal confirmed that expired leaseholders have a legal right to first refusal on renewal, and a land buyer who cannot prove proper due diligence loses the property.

What this practically means

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Executive summary

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The Court of Appeal at Eldoret (Warsame, Lesiit and Korir, JJAA) dismissed an appeal against a judgment of Ombwayo, J of the Environment and Land Court, which had ordered rectification of the register over Eldoret Municipality/Block 13/265, deletion of the appellant's name and re-entry of the 1st respondent's name, with a direction that the National Land Commission consider his pending extension-of-lease application. The 1st respondent, the immediate past holder of a 99-year lease expiring on 1st October 2008, had initiated renewal and received a letter of 12th October 2010 from the Commissioner of Lands confirming Municipal Council approval, but the land was instead allotted to the 2nd respondent in February 2013 and transferred to the appellant. The Court framed four issues: applicability of the 2010 Constitution and Land Act, 2012; applicability of legitimate expectation; the appellant's bona fide purchaser status; and costs. It held the cause of action arose in 2013 upon the new allotment, so the current Constitution and Land Act applied. It found the 1st respondent held a pre-emptive right under section 13(1) of the Land Act (mirroring section 60 of the repealed Registered Land Act) and a legitimate expectation of renewal that the 3rd to 5th respondents, who adduced no evidence of the allotment procedure, violated. The appellant failed to prove due diligence and, the root of the 2nd respondent's title being irregular, could not rely on the bona fide purchaser defence. The trial judgment was affirmed; the appeal was dismissed with the appellant bearing only the 1st respondent's costs.

Key legal issues

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01

Retrospective applicability of the Constitution, 2010 and the Land Act, 2012

Holding

The Constitution, 2010 and the Land Act, 2012 were properly applied because the cause of action arose in 2013 when the new lease was issued to the 2nd respondent, not when the old lease expired in 2008.

Reasoning

The court adopted D.T. Dobie's definition of cause of action and identified the challenged acts as the allotment of the land to the 2nd respondent in 2012/2013 and the subsequent transfer to the appellant. Since those acts justified the 1st respondent's suit, the laws in force in 2013 governed. The court nonetheless noted that the repealed Registered Land Act, section 60, also provided for pre-emptive rights, so the substance of the right existed under both regimes.

p. 7
02

Applicability of the doctrine of legitimate expectation

Holding

The doctrine applied: the 1st respondent, as immediate past leaseholder with a pending renewal application acknowledged by the Commissioner of Lands, had a reasonable, legally anchored expectation of renewal protected by section 13 of the Land Act.

Reasoning

Applying the CCK v Royal Media principles, the court found an express representation in the Commissioner of Lands' letter of 12th October 2010 confirming approval of the renewal application; the expectation was reasonable and anchored in section 13 of the Land Act and section 60 of the repealed Registered Land Act. The State respondents adduced no evidence explaining the procedure used to allot the new lease to the 2nd respondent, so the allotment violated the 1st respondent's legitimate expectation. The plea that legitimate expectation was not pleaded failed because the plaint raised it, albeit indirectly, and pleadings are read wholesomely.

p. 9
03

Whether the appellant was a bona fide purchaser for value without notice

Holding

The appellant failed to establish bona fide purchaser status: the root of the 2nd respondent's title was irregular and the appellant proved no due diligence beyond bare assertion.

Reasoning

Applying Munyu Maina, Samuel Kamere and Dina Management, where a title is under challenge the proprietor must prove legality of acquisition and the court must trace the title to its origin. The only evidence from the State side was an allotment letter and White Card, insufficient to dislodge the 1st respondent's documentary evidence of a pending renewal. The appellant, despite claiming due diligence, exhibited no search document. Since the original lease to the 2nd respondent was not procedurally obtained, the bona fide purchaser defence could not shield the appellant's title.

p. 10
04

Non-determination of the counterclaim

Holding

The counterclaim lacked merit, so no error arose from the trial court's treatment of it.

Reasoning

The appellant complained that the learned Judge did not render a decision on his counterclaim seeking affirmation of ownership. The Court held that given its conclusions on the invalidity of the root title and the absence of proven due diligence, the counterclaim had no merit and no fault could be attributed to the trial court.

p. 11

Legal principles established

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  • On a first appeal, the Court of Appeal's duty is to re-evaluate, reassess and reanalyse the evidence and determine whether the trial court's conclusions should stand.
  • The applicable law in a challenge to a land allocation is that in force when the cause of action arose — the allotment creating the new lease, not the expiry of the old lease.
  • Where a registered proprietor's root of title is under challenge, the proprietor must prove the legality of the acquisition beyond producing the title instrument; a court must trace the title to its first allotment.
  • An alleged bona fide purchaser for value must adduce evidence of the due diligence actually conducted; failure to do so defeats the defence.
  • The immediate past holder of an expired leasehold enjoys a pre-emptive right to allocation under section 13(1) of the Land Act, capable of grounding legitimate expectation.

Court orders

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  1. 1.Appeal dismissed
  2. 2.The appellant to bear only the 1st respondent's costs of the appeal; the 3rd, 4th, 5th and 6th respondents denied costs from the appellant
On appeal from
Environment and Land Court at Eldoret
Not stated in the judgment
Jurisdiction invoked
Article 164(3) of the Constitution and section 3 of the Appellate Jurisdiction Act (first appeal)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Geoffrey Tenai v Ragbhir Singh Sidhu & 5 others", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/105/eng@2025-01-24

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.