Court Rules Land Buyers Must Complete Payment and Obtain Documents Within 90 Days

The Malindi Court of Appeal has ruled that land buyers must comply with contractual timelines, including completing payment and securing completion documents within 90 days, or risk losing claims for damages beyond a refund.

In the decision delivered on December 5, 2025, the judges set aside a Ksh 4 million award issued by the Environment and Land Court (ELC) and limited compensation to a refund of the purchase price and Ksh 100,000 in nominal damages.

The dispute arose from a 2009 land sale agreement involving parcel Kilifi/Mtwapa/1496, where the buyers accused the seller of breaching the terms of the contract.

“Failed to obtain completion documents within 90 days from the date of the agreement; failed to transfer the suit property to the appellants despite obtaining consent to transfer from the Land Control Board; and failed to deliver completion documents to the appellants,” the Court of Appeal stated.

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Background of the Case at the Malindi Court of Appeal

The parties initially agreed on a purchase price of Ksh 900,000 and the buyers paid Ksh 572,000.

The seller later obtained consent from the Land Control Board. However, the buyers failed to complete the payment within the agreed 90-day period.

Afterward, the seller transferred the land to third parties despite an existing court inhibition order, prompting the buyers to file the case.

At the trial stage, the Environment and Land Court ruled in favour of the buyers, ordered the seller to refund Ksh 572,000 with interest, and awarded them Ksh 4 million in general damages. The court, however, declined to grant specific performance.

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Findings by the Court of Appeal

On appeal, the judges reconsidered the award and overturned the general damages; they clarified the extent of the buyers’ entitlement.

“They have succeeded to the extent that they will be refunded that part of the purchase price already paid but, in essence, and this notwithstanding and for the reasons afore-stated in this Judgment, they are not legally entitled to compensation in general damages.” the Court said.

“In view of the fact that nominal damages are a token award, we are of the view that an award of Kshs.100,000 is sufficient in the circumstances,” the Court added.

Finally, the court dismissed the appeal and substituted the earlier award, setting aside the Ksh 4,000,000 granted as general damages and replacing it with an award of Ksh 100,000 in nominal damages.

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Malindi Court of Appeal rules land buyers must complete payment and obtain documents within 90 days, limiting compensation to refund and nominal damages. PHOTO/ Collins Olemo Facebook