[2021] KEBPRT 142 (KLR)
The Tribunal found that the landlord's valuation report was not persuasive because it relied on the Rent Restriction Act, which does not apply to business premises, and did not provide comparable market rents. The tenant's valuation report, which used eight comparable properties in the same locality, was accepted as...
Source-derived case information.
- Citation
- [2021] KEBPRT 142 (KLR)
- Parties
- Applicant: Paul Thuku Githige; Respondent: Marjory Nyakiago Kimani
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 7 of 2021
- Procedural Posture
- Rent Assessment Application / Judgment
- Outcome
- Rent assessed at Kshs.20,000 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
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Paul Thuku Githige
Applicant
Marjory Nyakiago Kimani
Respondent
Procedural Posture
Rent Assessment Application / Judgment
Legal Issues
- 1 Whether the landlord is entitled to increase the rent from Kshs.15,000 to Kshs.30,800 per month for the demised premises.
- 2 What is the fair market rent payable for the premises occupied by the tenant.
- 3 Whether the Rent Restriction Act applies to business premises in this context.
Ratio Decidendi
The Tribunal found that the landlord's valuation report was not persuasive because it relied on the Rent Restriction Act, which does not apply to business premises, and did not provide comparable market rents. The tenant's valuation report, which used eight comparable properties in the same locality, was accepted as the proper basis for determining rent. The Tribunal calculated the average rent per square foot and applied it to the area occupied by the tenant, arriving at Kshs.16,645 per month. However, considering the lack of information on when comparable rents were last reviewed and inflationary trends, the Tribunal exercised its discretion to fix the rent at Kshs.20,000 per month...
Court Disposition
Rent assessed at Kshs.20,000 per month effective 1st February 2021. Each party to bear own costs.
Orders
- Rent for the demised premises is assessed at Kshs.20,000 per month effective 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. 7 OF 2021 (NYERI)
PAUL THUKU GITHIGE......................................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 Town Block 1/275 from Kshs.15,000/- to Kshs.30,800/- 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 which recommends a sum of Kshs.18,300/- in respect of the demised premises as the chargeable rent at current market rate.
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 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.30,800/- 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. All the properties are within the same locality. Going by the said report, the average for the 8 properties is Kshs.46. 625 per Sq. 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 357sq ft while according to the Landlord’s Valuer, he occupies an area of 359Sq ft. I will take the lower one in arriving at the rent payable.
11. Based on the average rent payable within the neighbourhood of the demised and the total area occupied by the tenant, I have arrived at a rent of Kshs.16,645/- per month.
12. Owing to the fact that the Tenant’s report do not indicate when the comparable premises rent were last reviewed, and in view of inflationary trends experienced in the country, I shall use my discretion to fix the rent payable at Kshs.20,000/- in respect of the demised premises.
13. In conclusion therefore, I proceed to assess rent at Kshs.20,000/- which shall apply from 1st February 2021.
14. I order that each party shall meet own cost of the instant proceedings.
It is so ordered.
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