[2021] KEBPRT 444 (KLR)
The Tribunal found that the parties had mutually agreed to a temporary reduction of rent to Kshs.75,000/- per month for the period March 2020 to October 2020 due to the Covid-19 pandemic. For all other periods, the lease agreement rate of Kshs.150,000/- per month applied. The Tribunal calculated the total arrears...
Source-derived case information.
- Citation
- [2021] KEBPRT 444 (KLR)
- Parties
- Applicant: Murgiyeny Farmers & Traders Limited; Respondent: Kennedy Langat Maluche T/A Amalo Bar
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 150 of 2020
- Procedural Posture
- Miscellaneous Application / Ruling on Application for Review and Rent Arrears
- Outcome
- application for review allowed; tenant ordered to pay rent arrears and continue paying contractual rent
- Legal Topics
- Business Premises Rent, Review of Tribunal Orders, Rent Arrears, Covid 19 Rent Concessions
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Murgiyeny Farmers & Traders Limited
Applicant
Kennedy Langat Maluche T/A Amalo Bar
Respondent
Procedural Posture
Miscellaneous Application / Ruling on Application for Review and Rent Arrears
Legal Issues
- 1 Whether the orders made on 29th December 2020 should be reviewed, varied or set aside.
- 2 Whether the tenant is liable to pay rent arrears for the period October 2019 to April 2021 and at what rate.
- 3 Whether the Covid-19 period concession on rent is binding on the parties.
Ratio Decidendi
The Tribunal found that the parties had mutually agreed to a temporary reduction of rent to Kshs.75,000/- per month for the period March 2020 to October 2020 due to the Covid-19 pandemic. For all other periods, the lease agreement rate of Kshs.150,000/- per month applied. The Tribunal calculated the total arrears owed by the tenant as Kshs.2,150,000/- as at 30th April 2021, taking into account the concession period. The Tribunal held that the tenant was liable for the full amount and that rent would continue to accrue at the contractual rate. The application for review was allowed, and the previous orders were varied accordingly.
Court Disposition
application for review allowed; tenant ordered to pay rent arrears and continue paying contractual rent
Orders
- The Tenant shall pay Kshs.2,150,000/- as at 30th April 2021 to the Landlord.
- Rent in respect of the demised premises shall continue to accrue at the rate of Kshs.150,000/- per month.
Full Case Text
Judgment text and source record
34 paragraphs
REPUBLIC OF KENYA
BUSINESS PREMISES RENT TRIBUNAL
VIEW PARK TOWERS 7TH & 8TH FLOOR
TRIBUNAL CASE NO. 150 OF 2020 (NAKURU)
MURGIYENY FARMERS & TRADERS LIMITED......LANDLORD/APPLICANT
VERSUS
KENNEDY LANGAT MALUCHE
T/A AMALO BAR.................................................................TENANT/RESPONDENT
RULING
By his amended application dated 18th March 2021, the Landlord/Applicant is seeking for variation, review or setting aside of the orders made on 29th December 2020.
The Landlord/Applicant further seek that the Tenant be ordered to pay rent for October, November, December 2019, January-December 2020 and continue paying February 2021 until this matter is heard and determined.
Finally, the Tenant prays that the Tenant pays the rent owed in the sum of Kshs.1,700,000/- and costs of the application.
The Tenant did not file a response to the application despite being served with the same in terms of the affidavit of service of CHELULE VINCENT filed in court on 25th March 2021.
The Tenant filed the instant Reference to challenge notice of termination of tenancy and on 29th December 2020, he was directed to pay rent in respect of the months of November, December 2020 and January 2021 by 31st January 2021.
It is the Landlord’s case that the Tenant misled the court by stating the monthly rent to be Kshs.85,000/- and that the amount due was only for the months of November 2020 to January 2021.
According to the Landlord, the amount payable per month for the premises is Kshs.150,000/- and not Kshs.85,000/-.
A sum of Kshs.75,000/- was payable during the Covid-19 period of March 2020-October 2020.
Although the Landlord contends that the court declined to give effect to the new terms varying the lease agreement, there is nothing on record to confirm the alleged position.
I therefore decline to be persuaded that rent for the period March 2020-October 2020 ought to be calculated at Kshs.150,000/- when there is no contest that parties had agreed to revise it to Kshs.75,000/- per month owing to Covid-19 pandemic.
The foregoing notwithstanding, I have calculated the amount due for the period October 2019-January 2021 with the Covid-19 concession in mind and agree that the amount due to the Landlord is Kshs.1,700,000/- for the said period.
Rent continues to accrue at Kshs.150,000/- as per the lease agreement dated 30th APRIL 2018 leaving the amount due to date at Kshs.2,150,000/- as at 30th APRIL 2021.
I therefore allow the application for review and direct that the Tenant pays Kshs.2,150,000/- as at 30th April 2021.
Rent in respect of the demised premises shall continue to accrue at the rate of Kshs.150,000/- per month.
It is so ordered.
HON. GAKUHI CHEGE
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL
RULING READ, SIGNED ON 18TH JUNE, 2021.
In the presence of:
Mr. Mukungu for the Landlord
No appearance for the Tenant
HON. GAKUHI CHEGE
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL