When the Nkando Farmers Cooperative Society Ltd was preparing for liquidation in 1999, a plot was hatched to grab part of its prime property.
By the time Francis Mambo Gatumo was appointed liquidator on May 13, 1999, a 1,418-acre tract, purchased by the coffee society in 1967, had been earmarked for grabbing by a few individuals.
The land, registered as LR No 7143 (now LR No. Timau/Timau/Block 71-763), is located along the Likii river on the border of Meru and Laikipia, near Nanyuki town. It was to be shared among about 8,000 members.
Court documents show that when the liquidator took over, society officials failed to hand over the land for liquidation, claiming it belonged to a few individuals.
This was the beginning of a land-grabbing scheme that was reversed by Justice Christopher Nzili of the Environment and Land Court in Meru in a judgment issued on September 28.
In 2004, Mr Jackson Kiraithe, a former member of the society, sued former chairman Thomas Kinoti for illegally transacting on society land even after liquidation.
Later, Baldev Kumur Kasturilalwal and Quadco One Hundred and Sixty-Nine Ltd were enjoined as interested parties, having purchased sections of the land.
In his plaint, Mr Kiraithe argued that Mr Kinoti had “allocated part of his land number 699 which was renamed parcel number 624 and reallocated to Alexander Mwiti Manyara …”
The scheme appears to have been well executed and even received backing from the liquidator, who swore an affidavit explaining why the land title deed bore the name of the society.
Section of the land belonging to the defunct Nkando Farmers Cooperative Society Ltd. The Environment and Land Court in Meru nullified the transfer of it’s title deed to Glencorrie Estate during liquidation that started in 1999.
In his statutory declaration sworn in 2005, Mr Gatumo stated the land that later became known as Glencorrie Estate “had been bought by some members of Nkando FCS ltd, who used the society’s name to acquire the land”.
“That the name used – Nkando Farmers Cooperative Society – as owner of parcel 7143 must be by inadvertence, as the Society’s name was only used to hold the title in the transition as the real owners awaited to be given their respective shares.” He stated.
Mr Gatumo, who resigned in 2002, urged the lands registrar “to proceed and finalise the subdivision of Glencorrie Estate …”
In his replying affidavit, Mr Kinoti argued that “all parcels of land were acquired by certain members of Nkando FCS Ltd, but not as part of the society’s property …”
But Mr Kiraithe said the society bought the land from the Sandford family, who were leaving the country, using members’ money.
“Indeed, we continued receiving reports of the farm business in the society AGM. Since the farm was running at a loss, the workers were being paid using society income,” Mr Kiraithe said.
As part of the plot, the defendant and 14 others drafted a trust deed in the name of Glencorrie Estate.
According to the Glencorrie Estate trust deed, “the shareholders and trustees had contributed various sums of money through their former cooperative societies and that the whole of Glencorrie estate has been purchased using the said monies …”
Nkandone Primary School located within land owned by the defunct Nkando Farmers Cooperative Society.
In June 2003, the plot was sealed when former officials of the society Ltd, including Mr Kinoti, Lucy Kathure and George Muchomba, surrendered the title deed.
This paved the way for the subdivision and sale of the prime land, leaving out thousands of rightful land owners and former members of the defunct society.
However, Justice Nzili’s recent judgment is a ray of hope for the defunct society’s members, who have been following the matter for more than 20 years.
Justice Nzili agreed with the petitioner that the land belonged to Nkando FCS Ltd and that “any acts undertaken thereafter without the involvement of the liquidator were illegal, invalid, null and void, from the beginning”.
“[A] liquidator was in office upon the gazettement up to and including August 2007. The defendant did not file before the court any approvals by the liquidator of the transfer made in 2004,” Justice Nzili noted.
Under liquidation
The judge also observed that the surrender was executed while the society was under liquidation without consent from the liquidator or the commissioner of cooperatives.
“The change of ownership of the property of the society in my view was not only illegal but also irregular and was aimed at defeating the very essence of the liquidation process,” the judge ruled.
He also declared the Glencorrie Estate trust deed irregular because it lacked the approval of the liquidator and was signed by the defendant, whose capacity was not defined.
The liquidator was faulted by the court for “perpetuating the illegalities and failing to stamp its authority by allowing the defendant to act as if he was the liquidator”.
Justice Nzili observed that “land LR No. 7143 now LR No. Timau/Timau/Block 71-763 belonged to the society and fell within the mandate of the liquidator with effect May 13, 1999 and that the defendant lacked powers to deal with the said parcels of land otherwise as a former chairman from the said date”.
However, the court could not issue a permanent injunction as the plaintiff did not provide evidence of the registered owners of the land.
Former members of the defunct society now want the government to help them recover the expansive land. BY DAILY NATION