[2022] KEBPRT 94 (KLR)
The Tribunal found that the landlord acted contrary to the express provisions of Cap 301 by proceeding to distress for rent without leave of the Tribunal. The tenant demonstrated willingness to clear the arrears and had requested a rent rebate due to financial hardship caused by the Covid-19 pandemic. The Tribunal...
Source-derived case information.
- Citation
- [2022] KEBPRT 94 (KLR)
- Parties
- Applicant: Elizabeth Nthuku t/a Chicken Kool Fries; Applicant: Sarah Kool; Respondent: Rank Global Management Limited; Respondent: Nextgen Auctioneers
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E507 of 2020
- Procedural Posture
- Miscellaneous Application / Ruling on Tenant's Application for Restraining Orders and Rent Arrears Payment Arrangement
- Outcome
- Tenant's application allowed; payment of arrears by installments permitted; landlord's notice declared defective; each party to bear own costs.
- Legal Topics
- Landlord Tenant Disputes, Distress for Rent, Rent Arrears, Covid 19 Rent Relief
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Elizabeth Nthuku t/a Chicken Kool Fries
Applicant
Sarah Kool
Applicant
Rank Global Management Limited
Respondent
Nextgen Auctioneers
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Tenant's Application for Restraining Orders and Rent Arrears Payment Arrangement
Legal Issues
- 1 Whether the landlord was entitled to distress for rent without leave of the Tribunal.
- 2 Whether the tenant is entitled to pay rent arrears in installments due to financial hardship caused by Covid-19.
- 3 Whether the landlord's notice to the tenant was valid.
Ratio Decidendi
The Tribunal found that the landlord acted contrary to the express provisions of Cap 301 by proceeding to distress for rent without leave of the Tribunal. The tenant demonstrated willingness to clear the arrears and had requested a rent rebate due to financial hardship caused by the Covid-19 pandemic. The Tribunal was persuaded that the tenant faced genuine difficulties and that the landlord should have considered the tenant's request for leniency. The Tribunal allowed the tenant's application to pay the arrears in monthly installments and declared the landlord's notice defective.
Court Disposition
Tenant's application allowed; payment of arrears by installments permitted; landlord's notice declared defective; each party to bear own costs.
Orders
- Tenant's reference and application dated 16th September 2021 allowed.
- Tenant to pay arrears of Kshs. 52,000 in installments of Kshs. 3,000 per month until clearance.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA
IN THE BUSINESS PREMISES RENT TRIBUNAL
TRIBUNAL CASE NO. E507 OF 2020 (NAIROBI)
ELIZABETH NTHUKU T/A
CHICKEN KOOL FRIES...............................................................1ST APPLICANT/TENANT
SARAH KOOL...............................................................................2ND APPLICANT/TENANT
VERSUS
RANK GLOBAL MANAGEMENT LIMITED .............1ST RESPONDENT /LANDLORD
NEXTGEN AUCTIONEERS....................................................................2ND RESPONDENT
RULING
1. The tenant moved this Tribunal on 16th September 2021 by way of reference and a notice of motion application seeking restraining orders against the Landlord which were granted by the Tribunal on 17th September 2021.
2. The Tenant is in arrears of Kshs. 52,000/- which she sought to defray in installments of Kshs. 3,000/- per month until completion.
3. On 10th September 2021, the Landlord proceeded to distress for rent without seeking leave of the Tribunal by sending the 2nd Respondent to proclaim the Tenant’s business equipment contrary to the express provisions of Cap 301.
4. The Tenant through their letters dated 30th April 2021 and 7th March 2021 had requested for a 50% rebate on the monthly rent on the grounds that their business was facing difficulty as a result of the Covid-19 pandemic.
5. The Tribunal is persuaded that the Tenant was facing difficulties in paying rent and observes that the Landlords had been advised by Government to be lenient and to agree to the rent rebate especially for the businesses that had been closed as a result of the pandemic.
6. The Tenant does not dispute the fact that they are in arrears of Kshs. 52,000/- having accrued as they paid the rebated rent rates of Kshs. 12,000/-, Kshs. 15,0000, Kshs. 18,0000/-and eventually Kshs. 20,000/-.
7. Having shown the willingness to clear their arrears, the Tribunal then proceeds to order as follows;
a) The upshot is that the Tenant’s reference and application dated 16th September 2021 are hereby allowed.
b) That the proposal by the Tenant to defray their arrears in installments of Kshs. 3,000/- per month until clearance of the Kshs. 52,000/- is hereby allowed.
c) The tenant shall continue to pay the full rent at the rate of Kshs. 20,000/- per month.
d) The notice issued by the Landlord is defective and cannot stand.
e) Each party shall bear their own costs.
f) for theTenantand in the absence of theInterested Party.
HON A. MUMA
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
Ruling dated, signed and delivered virtually by Hon A. Muma this 2ndday ofFebruary, 2022 in the presence of Elizabeth Nthuku (Tenant)in person and in the absence of theLandlord.
HON A. MUMA
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL