Josephine Wangui Ithondeka v Housing Finance Company Of Kenya [2014] KEHC 1471 (KLR)

Facts

The applicant, Josephine Wangui Ithondeka, sought to charge her property to guarantee a loan for her family company, Visions Enterprises Limited. The company had two shareholders, Ithondeka and her son Dennis Brian Waweru. However, her daughter Wairimu Waweru was a minor and could not give her consent.

Issues

1. Whether the applicant could use the trust property as security for another person
2. Whether the purpose of the mortgage was for the benefit of the beneficiaries for whom the land was held in trust for sale

Reasoning

The court ruled that the purpose of the mortgage was not recognized by the Trust of Land Act and the beneficiary of the monies was not a shareholder or director of the company. The court also noted that the purpose of the mortgage was to improve the company which would benefit all beneficiaries, but this was not a purpose recognized by the Trust of Land Act.

Outcome

Application dismissed

Authorities cited