In re Estate of the Late Moses Kiprono Keino (Deceased) (Succession Cause 144 of 1999) [2024] KEHC 4684 (KLR) (17 April 2024) (Ruling)

Kenya Law

Automated Summary

Key Facts

The court ruled on disputes regarding the administration of the late Moses Kiprono Keino's estate. Key issues included the revocation of an initial grant due to mismanagement, unresolved distribution of 550 acres of land sold in 2004, and a 12-acre parcel at Sorget Farm. Former administrator Daniel Kikwai Rono was ordered to account for proceeds from these properties, particularly Ksh.12,850,000 from the 550-acre sale and the 12-acre lease. The court mandated the Kenya Commercial Bank to provide a statement of the deceased's account (2003-2006) and directed the sale of the Nakuru Industrial Area factory. Administrators disputed Daniel's claims to 67% of the KIE Block E3 sale proceeds and alleged he improperly sold estate machinery.

Deceased Name

Moses Kiprono Keino

Issues

  • Daniel Kikwai Rono, the former administrator, was directed to provide accounts for the proceeds from the sale of 550 acres and 12 acres of Sorget Farm, which were allegedly not properly distributed.
  • The second administrator, Isabella Ann Schechero, accused the former administrator of selling machinery without beneficiary consent, leading to a request for him to account for those funds.
  • The court addressed the non-compliance with orders to distribute the 12 acres of Sorget Farm, directing that the property be transferred to the rightful beneficiaries and, if necessary, commission a survey to carve it out.
  • The court considered the valuation and sale of the factory in Nakuru, allowing parties to purchase it and pay out other beneficiaries, pending final sale approval.
  • The court revoked the grant of administration due to claims of mismanagement and failure to properly account for the proceeds from the sale of estate properties, including 550 acres of land and 12 acres at Sorget Farm.

Holdings

  • The court ordered Daniel Kikwai Rono to render accounts for the 12 acres of Sorget Farm LR 8346/Londiani within 45 days, as per Section 83 of the Law of Succession Act, due to allegations of mismanagement and failure to distribute proceeds.
  • Summons issued to Kenya Commercial Bank to provide a statement of account for the deceased's loan between 1/1/2003 and 31/12/2006 to clarify the distribution of proceeds from the 550-acre land sale.
  • Orders for the sale of the factory at Industrial Area, Nakuru, remain in force. Proceeds will be distributed once the sale is sanctioned by the court after a buyer is found.
  • The court directed the immediate transmission of the 12 acres of Sorget Farm to the rightful beneficiaries, with a requirement to commission a survey if necessary, and barred Daniel Kikwai from purchasing it until direct beneficiary agreements are made.

Remedies

  • The court ordered summons to The Kenya Commercial Bank to provide a statement of account for the deceased's loan account between 1 January 2003 and 31 December 2006 to clarify where the proceeds from the sale of 550 acres were allocated.
  • The court mandated the 12 acres of Sorget Farm LR 8346/Londiani to be transmitted to the rightful beneficiaries in their respective shares immediately. If the land hasn't been surveyed, the administrators must commission a survey to carve out the 12 acres.
  • The court directed David Kikwai Rono (former administrator) to render accounts regarding the 12 acres of Sorget Farm LR 8346/Londiani within 45 days from the ruling date, as per Section 83 of the Law of Succession Act.
  • The court reaffirmed the existing orders for the sale of the Industrial Area Nakuru factory. Sale proceedings will remain active until a buyer is found and the court sanctions the transaction, with proceeds distributed after resolving pending issues.

Will Type

Intestacy

Probate Status

Grant revoked in 2008 and rectified in 2019; current proceedings involve accounting and property distribution.

Legal Principles

  • The court invoked its inherent power under Probate and Administration Rules 73 to ensure transparency in estate administration and ordered the Kenya Commercial Bank to provide a statement of account for the deceased's loan period.
  • The court emphasized that a personal representative (executor) has a fiduciary duty to act in the best interest of the estate and must render a just and accurate account of all dealings with the estate's property.

Succession Regime

Governing succession under Kenya's Law of Succession Act, which regulates both testate and intestacy matters.

Executor Name

  • Caroline Wanjiku Kiprono
  • Susan Tagiptui Kiprono
  • Isabella Anne Shiecheru Kiprono

Cited Statute

  • Law of Succession Act
  • Probate and Administration Rules

Executor Appointment

Court Appointed as Joint Administrator (2019)

Judge Name

H. M. Nyaga

Passage Text

  • There is need for clarity and or certainty of where the proceeds of the sale of the said 550 acres went to... The bank should confirm to this court whether any monies relating to the deceased's loan account was deposited in their account.
  • The property be transmitted to the rightful beneficiaries in their respective shares forthwith... Should Daniel Kikwai Rono wish to purchase the same he ought to deal with the beneficiaries directly thereafter.
  • I hereby order David Kikwai Rono to render accounts with respect to this property in accordance with the duties of a personal representative as per Section 83 of the Law of Succession Act within 45 days from the date hereof.

Beneficiary Classes

  • Spouse / Civil Partner
  • Child / Issue