https://new.kenyalaw.org/akn/ke/judgment/kehc/2026/9188
The sale and conveyancing of the estate property had already been finalized and the title transferred, so cancelling the transaction would serve no useful purpose; the proper course was to safeguard Kshs. 7 million in escrow to verify and settle estate liabilities, then distribute the balance of Kshs. 58 million to...
Source-derived case information.
- Citation
- [2026] KEHC 9188 (KLR)
- Parties
- Applicant: Abdulkadir Abubakar; 1st Respondent: Imu Mohamed Bakari; 2nd Respondent: Milligant Valuers Limited
- Court
- High Court
- Jurisdiction
- Kenya
- Case Number
- Succession Cause 279 of 1978
- Procedural Posture
- Succession Cause / Ruling on Application in Estate Administration / Post Confirmation Application
- Outcome
- Application partly allowed; transaction upheld; escrow and distribution orders issued
- Judges
- ["HK Chemitei"]
- Legal Topics
- Revocation or Variation of Estate Sale Arrangements, Estate Asset Disposal, Escrow of Sale Proceeds, Settlement of Estate Liabilities, Distribution to Beneficiaries
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Abdulkadir Abubakar
Applicant
Imu Mohamed Bakari
1st Respondent
Milligant Valuers Limited
2nd Respondent
Procedural Posture
Succession Cause / Ruling on Application in Estate Administration / Post Confirmation Application
Legal Issues
- 1 Whether the appointment of the 2nd Respondent as agent for sale and disposal of estate property should be revoked
- 2 Whether the sale transaction should be cancelled and the property re-sold
- 3 Whether part of the sale proceeds should be retained pending verification and settlement of estate liabilities
Ratio Decidendi
The sale and conveyancing of the estate property had already been finalized and the title transferred, so cancelling the transaction would serve no useful purpose; the proper course was to safeguard Kshs. 7 million in escrow to verify and settle estate liabilities, then distribute the balance of Kshs. 58 million to the beneficiaries under Islamic law.
Court Disposition
Application partly allowed; transaction upheld; escrow and distribution orders issued
Orders
- Kshs. 7 million out of the Kshs. 65 million paid by the purchaser shall be kept in an escrow account in the names of counsel on record and the 2nd Respondent pending verification of liabilities to the estate, if any.
- Once liabilities are identified, the escrowed sum shall be used to settle them and any balance shall be paid to the beneficiaries under Islamic law.
Full Case Text
Judgment text and source record
1 paragraphs
In re Estate of Habib alias Fatima Binti Mohdari (Deceased) (Succession Cause 279 of 1978) [2026] KEHC 9188 (KLR) (Family) (25 June 2026) (Ruling) Neutral citation: [2026] KEHC 9188 (KLR) Republic of Kenya In the High Court at Nairobi (Milimani Law Courts) Family Succession Cause 279 of 1978 HK Chemitei, J June 25, 2026 IN THE MATTER OF THE ESTATE OF THE LATE FATUMA MOHDAR MOHAMED HABIB alias FATIMA BINTI MOHDARI (DECEASED) Between Abdulkadir Abubakar Applicant and Imu Mohamed Bakari 1st Respondent Milligant Valuers Limited 2nd Respondent Ruling 1.By his application dated 9th April 2025 the Applicant seeks orders that:(a)The appointment of the 2nd Respondent as agents for sale and disposal of the deceased estate properties and sharing of the proceeds thereof to the beneficiaries be revoked and other agents be appointed instead.(b)In the alternative to (a) above this Court do set new timelines in which the disposal and sale of the deceased estate and properties is to be concluded.(c)Any monies paid to the 2nd Respondent by intended purchasers pursuant to the Court orders made on 28th July 2014 be refunded to the intended purchasers and the properties be put up for fresh sale.(d)A report be made to the Court within one hundred and twenty days as to the sale and disposal of the estates properties and the disposal of the proceeds. 2.The application is based on the Applicant’s sworn affidavit dated the same date and the grounds thereof. 3.There are two further affidavits dated 17th September 2025 and 21st April 2026 in respond to the Respondent’s replying affidavit dated 7th May 2026. 4.The Court subsequently directed the parties to file their written submissions which they did and I have perused the same. 5.The substance of the matter herein is not difficult to appreciate and it is not in dispute at all. 6.The Court on 28th March 2014 upon confirmation of the grant directed that the estate property namely, Nairobi Block 103/2664, be valued and subsequently sold and the proceeds be shared out between the parties/beneficiaries. 7.The 2nd Respondent was appointed to carry out the exercise within 120 days. The sale was by way of public auction. 8.It is the Applicant’s case that the sale has never been concluded from 2014 thus causing frustration to the beneficiaries. 9.It is their case therefore that the said orders granted to the 2nd Respondent be canceled and new orders given on disposal of the said properties. 10.The Respondents on the other hand vide the replying affidavit of the 1st Respondent dated 7th May 2026 has refuted the allegations stating that the sale by the 2nd Respondent took long to conclude because there were changes in the land registration regime and that in any case the conveyancing process had since been concluded. 11.The Respondent deponed that the sticking point was the fees related to the sale of the properties which comprised the rates, legal charges as well as the costs incurred by the 2nd Respondent. 12.He deponed that the amount in total was close to Kshs. 7 million which he suggested that the same be placed in an escrow account till the beneficiaries agree on how the above liabilities would be settled. 13.Without belaboring the point, I find that the conveyancing transaction was finalised and the title transmitted to the purchasers namely the Nairobi West Muslim Community Trust Registered Trustees. 14.My understanding is that the 2nd Respondent was holding the funds awaiting instructions on how to forward to the beneficiaries less the costs incurred in the transactions. 15.It will not be efficacious to cancel the transaction as suggested by the Applicant. The best way is to ensure that the beneficiaries get their equal share as per the tenets of Islamic law. 16.Since the funds are already available then the same ought to be sorted out as a matter of priority noting the age of the parties and the period this matter has been in this Court. 17.The suggestion by the Respondent in my view is plausible. The amount in question of Kshs. 7 million will sort out the liabilities once the parties agree and any balance shall be paid out to the beneficiaries. 18.In the premises and taking the totality of the application, the submissions and the history of the matter I direct that:(a)The sum of Kshs. 7 million out of the Kshs. 65million paid by the purchaser shall be kept in an escrow account in the names of the counsels on record as well as the 2nd Respondent pending verification of the stated liabilities to the estate if any.(b)Once the liabilities are identified the said amount shall be utilized to settle the same and the balance paid out to the beneficiaries under the provisions of Islamic law.(c)The amount of Kshs. 58,000,000 shall be paid out to the identified beneficiaries within 30 days from the date herein.(d)Costs in the cause. DATED SIGNED AND DELIVERED AT NAIROBI VIA VIDEO LINK THIS 25TH DAY OF JUNE 2026.H K CHEMITEIJUDGE, FCIArb.