How a simple property sale turned neighbours into bitter enemies
A Sh5.5 million property sale in Nairobi’s elite Runda Estate has escalated into a bitter legal feud, turning neighbours into courtroom enemies after the seller tried to back out.
The dispute began in June 2008, when Johnson Ngarari Mwaura agreed to sell his home to married couple Andrew Murugu Maina and Caroline Wangari Muriuki.
The buyers deposited nearly the full purchase price with their lawyers as stakeholders and paid stamp duty, expecting a smooth transfer of ownership.
Problems arose when Mwaura later claimed he no longer wished to proceed and attempted to cancel the deal.
The couple challenged him in court, demanding he honour the agreement. The High Court ruled in the buyers' favour.
Mwaura appealed the case in an attempt to get favvourable ruling.
On appeal, the Court of Appeal, through judges Daniel Kiio Musinga (President), Francis Tuiyott, and George Vincent Odunga, last Friday delivered a unanimous ruling, dismissing the appeal and required to cater for the legal costs of the cases.
The judges affirmed the validity of the written sale agreement.
“The plaintiffs promised to pay the full purchase price of Sh5,500,000 within seven days of completion of registration of transfer of the suit property. This promise, which was to be performed in future, was sufficient consideration of the defendant’s agreement to sell the suit property. The agreement was therefore valid and enforceable.”
The court also rejected the seller’s claim that an earlier oral agreement could nullify the written contract, calling it:
“an afterthought and can only serve to obfuscate a rather straightforward legal issue.”
The judges highlighted Mwaura’s failure to provide essential completion documents, particularly the Rates Clearance Certificate, as a key factor in the dispute.
“Even if the defendant had a right to rescind the agreement for sale, the purported rescission was not carried out in accordance with the terms of the agreement and as such was ineffective to terminate the agreement.”
Interestingly, the ruling also clarified the legal concept of executory consideration, explaining that the buyers’ promise to pay upon successful registration was enough to constitute valid consideration under the Law of Contract.
The judges referenced established principles, noting that mutual promises create a binding agreement, even if performance occurs later.
Ultimately, the appeal was dismissed, cementing the trial court’s order for Mwaura to complete the sale.
What began as a simple property transaction has now left former neighbours embroiled in a bitter legal feud, showing how quickly agreements can sour friendships—and turn neighbourhood ties into courtroom battles.
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