The Kenya Revenue Authority (KRA) has secured a significant victory after the Environment and Land Court ruled that it is the rightful owner of a disputed parcel of land in Mombasa.
The land, which had also been claimed by a private individual and used as collateral for a Sh42 million bank loan, was officially declared KRA’s property.
Justice Nelly Matheka ordered the Chief Land Registrar to issue a new title deed to KRA for the land, known as Land Reference Mainland North/1/2415, Mombasa.
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The court recognized that the land had been used by KRA’s predecessor, the Customs and Excise department, which had developed a three-bedroom bungalow for senior staff on the site.
The judge emphasized that the property had always been reserved for government use, specifically by the Customs department, and could not be allocated to any other party.
KRA and the Customs Department have been in possession of the land since 1975, primarily for staff housing.
The court also ruled in favor of KRA in its case against Mr. Osman Said, the National Bank of Kenya (NBK), Joseph Gikonyo of Garam Investments Auctioneers, the Chief Land Registrar, and the National Land Commission.
KRA had argued that the land was public property and that Mr. Said’s claim to ownership, based on a 2003 grant, was invalid. The court agreed, ruling that the title issued to Mr. Said was obtained improperly, as it was developed public land, and therefore null and void.
Mr. Said had denied the allegations, insisting he purchased the land lawfully and that the revocation of his title was illegal. However, his counterclaim seeking recognition as the legitimate owner and an eviction order against KRA was dismissed.
NBK, which had issued a Sh42 million loan using the land as collateral, argued that it had followed due diligence, including site visits and acquiring the necessary land documents.
Nonetheless, the court declared the bank’s charge on the property invalid and canceled both the original charge dated March 19, 2015, and its variation on September 18, 2015.
Finally, the court issued a permanent injunction preventing Mr. Said, NBK, or any other parties from selling, interfering with, or claiming ownership of the land, ensuring KRA’s uninterrupted possession and use of the property.
