In a landmark judgment Equity Bank chief executive James Njuguna Mwangi and his wife, Jane Wangui Mundia, have been ordered to pay KSh 10 million in damages for illegally acquiring a Ksh 1 billion prime parcel of land in Nairobi’s affluent Muthaiga estate
The ruling by Environment and Land Court (ELC) Judge Oscar Angote on Friday marks a major legal defeat for one of Kenya’s most powerful corporate figures, bringing an end to a long-running and highly contentious property battle.
In his decision, Justice Angote found that Equity Bank CEO Mwangi and his wife, had no legal claim to the multi-billion shilling Muthaiga property and had unlawfully taken possession of land belonging to Mount Pleasant Limited.
The judge noted glaring irregularities in the documents presented by the couple, including missing volume references, unsigned land registry entries, and inconsistencies in file numbers, which rendered their alleged 2012 purchase from the late President Daniel arap Moi “null and void.”
Justice Angote declared that the land, originally registered as L.R 214/20/1/1 and L.R 214/20/2, and later irregularly amalgamated into L.R 214/832, belongs to Mount Pleasant Limited, not Dr. Mwangi and his wife.
The judge ordered that the couple pay KSh 10 million in general damages for trespass, with interest accruing from the date of judgment until full payment, and to vacate the property immediately under the threat of police enforcement.
“An award does hereby issue of general damages for trespass, assessed at Kenya Shillings Ten Million. The 1st and 2nd Defendants(Mwangi and his wife Wangui) to pay interest on the above amount at court rates from the date of this Judgment until payment in full. The 1st and 2nd Defendants’ counterclaim is dismissed with costs. The 1st and 2nd Defendants to pay the Plaintiff the costs of the suit,” Justice Angote ruled emphatically.
The decision restores ownership of the 3.733-acre property to Mount Pleasant Ltd, which traced its acquisition back to former Cabinet Minister Arthur Kinyanjui Magugu and his wife, Margaret.
According to company records, Mount Pleasant purchased the property in 2006 for KSh 130 million after the Magugus redeemed it from the National Bank of Kenya.
Dr. Mwangi, however, insisted that he legally purchased the same land in 2012 directly from the late President Moi for KSh 320 million, presenting a conveyance allegedly executed by the former Head of State.
Mwangi claimed he had taken possession of the land and initiated amalgamation and survey approvals to consolidate the parcels.
But the court’s detailed 150-page judgment found otherwise.
Justice Angote concluded that President Moi had lost ownership of the parcels back in 1982 when he transferred them to the Magugus, whose title was subsequently conveyed to Mount Pleasant Ltd.
“Any subsequent transaction purporting to return the property to Moi or to sell it again is null and void,” the ruling states.
The judgment highlighted glaring irregularities in the documents produced by Dr. Mwangi.
These included missing volume references, unsigned land-registry entries, and inconsistent file numbers, which the court found rendered the alleged 2013 conveyance invalid.
The court further observed that any attempt to reassign the property to Mwangi and his wife after it had been legally transferred to the Magugus in 1982, and subsequently to Mount Pleasant Limited, was invalid.
Consequently, the Chief Land Registrar and the National Land Commission were directed to expunge Mwangi’s title and restore the original ownership to Mount Pleasant Ltd.
Justice Angote further issued a permanent injunction barring the defendants, or their agents, from accessing or dealing with the property and ordered immediate vacation of the premises.
Police assistance was authorized to enforce the eviction if necessary.
The court also awarded Mount Pleasant Ltd mesne profits of KSh 500,000 per month from the date of unlawful occupation.
The case had been filed in 2020 by Mount Pleasant Ltd’s director, Anverali Mohamed Karmeli Amershi against equity CEO Mwangi, his wife and others.
In his testimony before court, he recounted how the company purchased the land from the Magugus, who had redeemed it from the National Bank of Kenya following a mortgage default.
“Our purchase price was KSh 130 million. We took possession in 2006 and have been in continuous occupation since then,” Amershi testified.
“The defendants claim to have bought the land in 2012, but they never produced valid documentation to support that.”
Amershi described repeated attempts by the Mwangi family to assert ownership, including alleged evictions of the company’s security personnel.
“This is not just about ownership; it’s about trespass and the unlawful takeover of property that does not belong to them,” he said
During cross-examination, Amershi conceded that certain procedural documents, such as a verifying affidavit and proof of his directorship, were missing from the case file.
However, the court found that these omissions did not diminish the clear chain of ownership from the Magugus to Mount Pleasant Ltd.
On his side Equity CEO Mwangi, recounted his version of events in court, stating that he had purchased the property from the late President Moi in December 2012 and had paid a deposit of KSh 32,060,000, with the balance of KSh 200,000,000 completed thereafter.
He claimed that the former President personally “blessed” the sale at his Kabarnet Gardens residence.
“I conducted a search, verified all details, and completed a valuation before executing the agreement. By April 2013, the sale was complete,” Dr. Mwangi testified.
“We took possession, engaged security, and even constructed a boundary wall.”
However, the court noted that Mwangi failed to produce critical supporting documents, such as the alleged sale agreement with President Moi and evidence of payments for amalgamation and survey approvals.
Witness testimony revealed inconsistencies in his account, particularly regarding the chain of title and the legality of the purported conveyance.
The detailed judgment meticulously traced the ownership history of the parcels.
Originally allocated to James Archibald Morrison during the colonial era, the land changed hands multiple times, ultimately being conveyed to the late President Moi by the 8th Duke of Portland’s estate in 1980.
Moi mortgaged the land to Standard Bank, which reconveyed it back to him in 1982 before selling it to the Magugus.
Mount Pleasant Ltd legally acquired the land from the Magugus in 2006, registering the transfer and paying all requisite stamp duties.
The company also applied for amalgamation of the two parcels and undertook sub-division approvals in compliance with Nairobi County regulations.
