SAVINGS AND LOAN KENYA LIMITED V. MAYFAIR HOLDINGS LIMITED

JUDGMENT OF VISRAM, J.

This appeal raises only one important issue: who, between the purchaser and the seller (selling under a statutory power of sale), is liable to pay the land rent and rates up to the time of the sale of the immovable property.

The facts giving rise to this appeal are simple and not in dispute. There are two immovable properties that are at the centre of the dispute herein – Kisumu Municipality Block 9/961 and 962 (the suit property) which were formerly owned by Kisumu County Council, and charged to Savings and Loan Kenya Limited, the appellant herein. When Kisumu County Council defaulted in its mortgage obligations, the appellant sought to exercise its statutory power of sale, and asked its auctioneers, Jogi Auctioneers, to sell the property by way of public auction. The respondent, Mayfair Holding Limited, was declared the highest bidder at the auction on 19^th August, 1996, and its bid of Kshs.24,800,000/= was accepted. It promptly paid the required deposit of Ksh…