SAMUEL NGIGE KIARIE V. NJOWAMU CONSTRUCTION COMPANY LIMITED & STEPHEN NJOROGE MUHINJA

JUDGMENT OF THE COURT

The appellant herein is the registered proprietor of LR No. 76/784 situated within Thindigua in Kiambu District (the suit land). An agreement dated 8th June 2007 was entered into between the appellant and the respondents for the sale of the suit land together with all developments thereon at the purchase price of Kshs. 9,000,000. The 2nd respondent is the Managing Director of the 1st respondent and was residing in a house erected on the suit land. The agreement stipulated that the 1st respondent had paid a deposit of Kshs. 4,000,000, taken possession of the suit land as a tenant at a monthly rent of Kshs. 20,000. Further that the balance of the purchase price was to be paid in two equal instalments of 2,500,000 each; the first one was payable on or before 30th June 2007 and the final one on or before 30th August 2007.

Clause 3 of the sale agreement stated that late payments of the purchase price would attract a penalty of Kshs. 25,000 per month until full payment. …