[2021] KEBPRT 141 (KLR)
The Tribunal found that the landlord's valuation report was not persuasive as it relied on the Rent Restriction Act, which does not apply to business premises, and lacked comparable market rents. The tenant's valuation report, which used eight comparable properties in the same locality and calculated an average rent...
Source-derived case information.
- Citation
- [2021] KEBPRT 141 (KLR)
- Parties
- Applicant: Mary Wachuka Kibuchi; Respondent: Marjory Nyakiago Kimani
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 8 of 2021
- Procedural Posture
- Rent Assessment Application / Judgment
- Outcome
- Rent assessed at Kshs. 26,000 per month effective 1st February 2021; each party to bear own costs.
- Legal Topics
- Business Premises Rent, Rent Increase Dispute, Valuation of Premises
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mary Wachuka Kibuchi
Applicant
Marjory Nyakiago Kimani
Respondent
Procedural Posture
Rent Assessment Application / Judgment
Legal Issues
- 1 Whether the landlord is entitled to increase rent from Kshs. 23,500 to Kshs. 45,000 per month for the tenant's business premises.
- 2 What is the appropriate rent payable for the premises occupied by the tenant based on valuation evidence.
Ratio Decidendi
The Tribunal found that the landlord's valuation report was not persuasive as it relied on the Rent Restriction Act, which does not apply to business premises, and lacked comparable market rents. The tenant's valuation report, which used eight comparable properties in the same locality and calculated an average rent per square foot, was accepted as the proper basis for assessment. The Tribunal adopted the lower area figure of 513 sq ft to avoid injustice and, considering the tenant's valuer's recommendation, set the rent at Kshs. 26,000 per month effective 1st February 2021. Each party was ordered to bear their own costs.
Court Disposition
Rent assessed at Kshs. 26,000 per month effective 1st February 2021; each party to bear own costs.
Orders
- Rent for the demised premises is assessed at Kshs. 26,000 per month with effect from 1st February 2021.
- Each party shall meet their own costs of the proceedings.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
BUSINESS PREMISES RENT TRIBUNAL
VIEW PARK TOWERS 7TH & 8TH FLOOR
TRIBUNAL CASE NO. 8 OF 2021 (NYERI)
MARY WACHUKA KIBUCHI........................APPLICANT/TENANT
VERSUS
MARJORY NYAKIAGO KIMANI...... RESPONDENT/LANDLADY
JUDGMENT
1. By a tenancy notice dated 25th November 2021, the Landlord sought to increase rent in respect of the Tenant’s premises situate on L.R. NO. Karatina Block 1/275 from Kshs. 23,500/- to Kshs.45,000/- per month with effect from 1st February 2021.
2. The Tenant being opposed to the said notice filed the instant reference on 25th January 2021.
3. Both parties filed valuation reports which was agreed upon by consent to be the basis of this judgment without the necessity of calling oral evidence.
4. The Tenant’s report is by Rwingo Valuers and is dated 14th April 2021 and recommends a sum of Kshs.26,000/- in respect of the premises occupied by the Tenant.
5. The demised premises is located within the Northern part of the Central Business District (CBD) of Karatina Township along Kibaki Road and lies approximately 100 metres from Kirigu Primary School.
6. The comparable market rents used in arriving at the said recommendation are eight (8) properties whose report is to be found on pages 7 and 8 of the valuation report.
7. On the other hand, the Landlord used D. Ndirangu, Valuation Officer of the Rent Restriction Tribunal, Nairobi who recommends a figure of Kshs.45,000/- as monthly rent based on the Rent Restriction Act, the cost of construction plus commensurate value of the land.
8. I have looked at the comparables used by the Tenant’s valuer which range between Kshs.28/- per square feet and Kshs.68/- per square feet. At the properties are within the same locality. Going by the said report, the average for the 8 properties is Kshs. 46. 625 per square feet.
9. On the other hand, the Landlord’s report has no comparables and cites the Rent Restriction Act as the basis for arriving at the recommended rent. The Act is not applicable to Business Premises and I shall not therefore be guided by the said report.
10. The Tenant herein occupies an area of 513 Sq ft as per her valuation report as opposed to 524sq. ft as per the Landlord’s report. To avoid visiting an injustice in the event of a mistake in the lettable area quoted, I shall take the lower figure as the basis of my tabulation of the rent payable.
11. Based on the average rent payable within the neighbourhood of the demised premises and the total area occupied by the tenant, I have arrived at a rent of Kshs.23,918. 62 per month.
12. Given that the tenant’s valuer recommends a sum of Kshs.26,000/-, I shall adopt the figure as the rent payable in respect of the demised premises.
13. In conclusion, therefore, I proceed to assess rent at Kshs.26,000/- which shall apply with effect from 1st February 2021.
14. I order that each party shall meet own cost of the instant proceedings.
It is so orders.
DATED, SIGNED AND DELIVERED VIRTUALLY THIS 19TH DAY OF NOVEMBER, 2021
HON. GAKUHI CHEGE
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
In the presence of
Muchiri for the Tenant