[2022] KEBPRT 114 (KLR)
The Tribunal found that both landlord and tenant accepted the existence of a rent waiver, but the duration was unclear. In the absence of explicit agreement, the Tribunal determined that the most appropriate end date for the 50% rebate was when the government officially lifted the Covid-19 curfew on 30th October...
Source-derived case information.
- Citation
- [2022] KEBPRT 114 (KLR)
- Parties
- Applicant: Mid Africa Logistics Limited; Respondent: Parkway Investments Ltd; Respondent: Sparrow Managers and Consultancy Ltd
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case E366 of 2021
- Procedural Posture
- Miscellaneous Application / Ruling
- Outcome
- Application allowed in part; rent rebate period fixed; arrears to be paid; parties to bear own costs.
- Legal Topics
- Commercial Leases, Rent Waiver, Covid 19 Rent Relief, Arrears Reconciliation
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mid Africa Logistics Limited
Applicant
Parkway Investments Ltd
Respondent
Sparrow Managers and Consultancy Ltd
Respondent
Procedural Posture
Miscellaneous Application / Ruling
Legal Issues
- 1 Whether the tenant is entitled to a 50% rent rebate for the period during the Covid-19 pandemic.
- 2 For what duration should the 50% rent rebate apply?
- 3 How should the rent arrears be reconciled in light of the agreed rebate?
Ratio Decidendi
The Tribunal found that both landlord and tenant accepted the existence of a rent waiver, but the duration was unclear. In the absence of explicit agreement, the Tribunal determined that the most appropriate end date for the 50% rebate was when the government officially lifted the Covid-19 curfew on 30th October 2021. The landlord was ordered to prepare a statement of account reflecting a 50% rent rebate from 30th June 2020 to 30th October 2021. The tenant was ordered to pay the reconciled arrears within 30 days and to resume full rent payments from 1st November 2021 as per the lease agreement. The tenant was to continue enjoying quiet possession, with the landlord retaining the right to...
Court Disposition
Application allowed in part; rent rebate period fixed; arrears to be paid; parties to bear own costs.
Orders
- Landlord to prepare a statement of account from 30th June 2020 to 30th October 2021 at 50% rent within 14 days.
- Tenant to pay the reconciled arrears in total within 30 days.
Full Case Text
Judgment text and source record
29 paragraphs
REPUBLIC OF KENYA
IN THE BUSINESS PREMISES RENT TRIBUNAL
TRIBUNAL CASE NO. E366 OF 2021 (NAIROBI)
MID AFRICA LOGISTICS LIMITED...........................................TENANT/APPLICANT
AND
PARKWAY INVESTMENTS LTD.........................................................1ST RESPONDENT
SPARROW MANAGERS AND CONSULTANCY LTD.....................2ND RESPONDENT
RULING
1. This Tenant herein moved the Tribunal on 29th July 2021 seeking for a 50% rebate on rent to be maintained that was given during covid period being from June/July 2020.
2. The Tenant sought protection from proclamation and eviction via a valid notice. The said orders were granted and parties were to file submissions and statements of account.
3. The main issue is arrears of rent and reconciliation of accounts more particularly the 50% rebate. How long should it have been given?
4. I have perused the document and find as follows;
a.Rent arrears as at 8th July 2021 was Kshs 304,392/-and the Tenant made proposals to pay the same.
b.The Landlord accepts having given the Tenant a 50% rebate for arrears in his affidavit but the same is not reflected on the Landlord’s statement at all.
c.It is clear that the Tenant requested for waiver of rent on 30th June 2020 from his letter marked “TMO – 3” for the months of June and July, complete waiver.
d.What is not clear is for how long the 50% waiver was given after the request for complete waiver in June 2020.
5. In the absence of such clarity and in the presence of Landlord and Tenants acceptance of a waiver, I therefore find that the most appropriate date I can use is when the government officially lifted the curfew being 30th October 2021 via a gazette notice.
6. The Landlord shall prepare a statement from 30th June 2020 to 30th October 2021 at 50% being Kshs 30,976/- made by the Tenant in 14 days.
7. The Tenant shall pay the said arrears in total within 30 days.
8. The Tenant shall therefore commence to pay rent at Kshs 41,952/- from 1st November 2021as agreed in the lease agreement.
9. The Tenant to continue enjoying quiet possession and the Landlord is at liberty to distress in case of default.
10. Each party to bear costs. Reference settled on similar terms.
HON A. MUMA
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
Ruling dated, signed and delivered virtually by Hon A. Muma this 18thday ofJanuary, 2022 in the absence of the parties.
HON A. MUMA
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL