[2021] KEBPRT 448 (KLR)
The tribunal considered both parties' valuation reports, noting that the landlord's report was more recent and based on a wider range of comparables. Given the delay in proceedings and inflation, the tribunal found it would be unfair to rely solely on the tenant's older valuation. The tribunal fixed the rent at...
Source-derived case information.
- Citation
- [2021] KEBPRT 448 (KLR)
- Parties
- Applicant: James Maina Kiarie; Respondent: Njenga Gachegua Kibe; Respondent: Stema Insurance & General Agencies
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 41 of 2016
- Procedural Posture
- Rent Reference / Judgment
- Outcome
- Reference dismissed. Rent increased to Kshs. 10,000 per month effective July 2021. Costs awarded to landlord.
- Legal Topics
- Rent Increase Dispute, Business Premises, Valuation Reports, Landlord Tenant Relationship
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
James Maina Kiarie
Applicant
Njenga Gachegua Kibe
Respondent
Stema Insurance & General Agencies
Respondent
Procedural Posture
Rent Reference / Judgment
Legal Issues
- 1 Whether the landlord's notice to increase rent from Kshs. 4,000 to Kshs. 10,000 per month is justified.
- 2 What is the fair market rent for the premises in question as at the date of judgment.
- 3 Whether the landlord is entitled to costs.
Ratio Decidendi
The tribunal considered both parties' valuation reports, noting that the landlord's report was more recent and based on a wider range of comparables. Given the delay in proceedings and inflation, the tribunal found it would be unfair to rely solely on the tenant's older valuation. The tribunal fixed the rent at Kshs. 10,000 per month, balancing the interests of both parties and reflecting current market conditions. The landlord was also awarded costs due to the successful opposition to the tenant's reference.
Court Disposition
Reference dismissed. Rent increased to Kshs. 10,000 per month effective July 2021. Costs awarded to landlord.
Orders
- The rent payable by the tenant is fixed at Kshs. 10,000 per month effective July 2021.
- The landlord is awarded costs of Kshs. 15,000 against the tenant.
Full Case Text
Judgment text and source record
30 paragraphs
REPUBLIC OF KENYA
BUSINESS PREMISES RENT TRIBUNAL
VIEW PARK TOWERS 7TH & 8TH FLOOR
TRIBUNAL CASE NO. 41 OF 2016 (NAKURU)
JAMES MAINA KIARIE....................................................................TENANT/ APPLICANT
VERSUS
NJENGA GACHEGUA KIBE........................................1ST RESPONDENT/LANDLORD
STEMA INSURANCE & GENERAL AGENCIES..............2ND RESPONDENT/AGENT
JUDGMENT
1. The Landlord served a notice of increment of rent in respect of premises known as NJORO/NJORO 519/106 (NJORO TOWN) shop No. 4 from Kshs.4000/- to Kshs.10,000/- per month.
2. The Tenant filed a Reference to oppose the said notice.
3. On 14th June 2019, the parties were ordered to file their respective valuation reports.
4. A report by CHRISCA REAL ESTATES dated 5th September 2019 was filed by the Landlord recommending a monthly rent of Kshs.12,000/- at the rate of Kshs.50/- per sq ft per month and a lettable space of 241 sq, feet.
5. The said report is based on 4 comparables with rates ranging between 45-62 per Sq, feet per month.
6. On the other hand the Tenant filed a report for KERIASEL & CO. LTD dated 31st January 2020 recommending a monthly rent of Kshs.7000/- based on Kshs.29/- per Sq. ft after considering 3 comparables, the lettable area is 241 sq feet.
7. The current rent for the Tenant from the year 2015 is Kshs.6000/- per month.
8. The Landlord’s notice was to take effect on 1st August 2016. Unfortunately the case has delayed in court since 2016 due to factors beyond the control of both parties.
9. In the premises and in view of the fact that the Landlord’s assessment was done almost 2 years ago, it will be unfair to rely on the Tenant’s valuation.
10. This is moreso given the rate of inflation and the need to compensate him for his investment.
11. I shall therefore fix the rent payable at Kshs.10,000/- per month which shall be payable with effect from July 2021.
12. I award the Landlord costs of Kshs.15,000/- against the Tenant.
It is so ordered.
HON. GAKUHI CHEGE
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
JUDGMENT DATED, SIGNED & DELIVERED THIS …18TH …. DAY OF …JUNE.. 2021.
HON. GAKUHI CHEGE
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
In the absence of the parties