DCI, Lands ministry staff at centre of Sh1.6 billion land fraud case
Ardhi House which houses the Lands ministry. Officers from the Directorate of Criminal Investigations (DCI) and the Ministry of Lands have been drawn into a high-stakes legal battle over the ownership of a Sh1.6 billion property in Loresho, Nairobi County.
What you need to know:
- In documents filed in court, Principal Land Registrar Mr Wanderi Mark Muigai says the property has a 99-year lease starting July 1, 1995. He confirms that it was registered under Beba Freight on February 14, 2013.
- However, he adds that a transfer dated April 30, 2013, shows the land was subsequently sold to Manji and Choi for Sh15 million and that this transfer was registered on May 13, 2013. The case is still pending in the Environment and Land Court.
Officers from the Directorate of Criminal Investigations (DCI) and the Ministry of Lands have been drawn into a high-stakes legal battle over the ownership of a Sh1.6 billion property in Loresho, Nairobi County.
The dispute pits two private developers against each other with each laying claim to the same parcel of land using conflicting title documents.
The property in question is the subject of a lawsuit filed by Beba Freight Company Limited.
The company claims that its land was fraudulently sold in 2011 to two foreign investors Bharat Ramji Manji and Young Moon Choi by individuals falsely posing as its directors.
According to Beba Freight, the individuals who executed the sale, Robert Muthui and Erick Kiptanui (also referred to as Mr Naibei in court papers), were not legitimate company officials but impersonators.
Armed with what they believed were legitimate ownership documents from the Ministry of Lands, Manji, and Choi acquired the land for Sh15 million.
Seven years later, in 2018, they sold the land to Landmark Freight Services Limited, a company owned by Nakuru-based businessman Samuel Mburu Kamau for Sh160 million.
This transaction has now led to a court battle between Landmark Freight and Beba Freight, with both parties claiming to hold the genuine title deed.
Each side accuses the other of relying on forged documents. The court has tasked the DCI with investigating the validity of the two title deeds to establish the rightful owner.
According to court documents, Mr Kamau says Landmark purchased the property after conducting due diligence, which included an official land search confirming the registration under Manji and Choi.
The transaction was handled by the vendor’s agents, Kinyua Koech Limited, who also provided clearance certificates for land rent and rates, as well as all other required completion documents.
Landmark was granted vacant possession upon full payment of the purchase price.
Following the purchase, Landmark conducted another land search which confirmed that the property had been transferred into its name.
In 2020, Landmark used the title as collateral for a Sh150 million loan from Kenya Commercial Bank, further reinforcing its belief in the legitimacy of its ownership.
Mr Kamau also claims that when his company examined the title deed held by Beba Freight, it was confirmed to be fraudulent.
The matter was reported to the DCI, which then referred it to the Land Fraud Investigations Unit for deeper scrutiny.
On the other hand, Beba Freight insists that the 2011 transaction between its alleged “directors” and the foreign investors was a complete fraud.
The company maintains that the supposed sellers were not and have never been listed as its directors. Instead, the legitimate directors, as indicated in the CR12 from the Registrar of Companies are Bernard Otieno Omallo, John Gitau Ngumi, and Atek Otech Richard.
In an affidavit, Mr Omallo asserts that Beba Freight was allocated the land by the government on July 6, 1995.
After receiving the allotment letter, the company took possession of the land, constructed a perimeter wall, and has consistently paid land rent and rates to the Nairobi City County.
He contends that Beba Freight has never transferred the land to any other party and therefore remains its legal owner.
Mr Omallo accuses Landmark Freight, along with Manji and Choi, of unlawfully invading the property in March 2024.
He alleges that the defendants forcefully took possession and began construction on the land without any legal justification.
He further states that during the intrusion, the perimeter wall was demolished, depriving Beba Freight of its property rights and peaceful enjoyment of the land.
In court, Beba Freight has raised questions over the documents used to facilitate the 2018 transfer to Landmark. The company argues that the documents are riddled with inconsistencies and irregularities.
It also invokes Article 40(6) of the Constitution, which provides that protection of property rights does not apply to land or property acquired illegally.
Beba Freight is asking the Environment and Land Court to issue a permanent injunction restraining the defendants from interfering with the property.
It also seeks a declaration that Beba Freight is the rightful and legal owner, an eviction order against the defendants, cancellation of Landmark’s title, and rectification of the land register to reflect Beba Freight as the sole proprietor.
In response to the escalating dispute, Justice Christine Ochieng issued an order preserving the status quo.
This means that neither party should carry out developments, interfere with, or transfer the property until the court makes a final determination.
The judge also directed the Chief Land Registrar to place an inhibition order on the land to prevent any further dealings.
Despite these orders, Beba Freight has filed contempt proceedings against Landmark and its directors, accusing them of violating the court’s directive.
According to the company’s lawyer James Oketch, the defendants have continued with construction activities, deposited building materials, and engaged in other actions that could alter the property and undermine the pending suit.
“Their illegal actions are calculated to significantly alter the character of the suit property, defeat the plaintiff’s interest, and render nugatory the instant suit,” Mr Oketch told the court.
In addition, Beba Freight wants the Chief Land Registrar summoned to explain why the inhibition order has not yet been registered, as directed by the court.
In documents filed in court, Principal Land Registrar Mr Wanderi Mark Muigai says the property has a 99-year lease starting July 1, 1995. He confirms that it was registered under Beba Freight on February 14, 2013.
However, he adds that a transfer dated April 30, 2013, shows the land was subsequently sold to Manji and Choi for Sh15 million and that this transfer was registered on May 13, 2013. The case is still pending in the Environment and Land Court.