[2022] KEBPRT 36 (KLR)
The tribunal found that the only substantive evidence before it was the landlord's valuation report, which assessed the fair market rent for the premises at Kshs 32,000 per month. The tenants failed to file any counter-valuation or evidence to dispute the landlord's assessment. The tribunal reviewed the comparables...
Source-derived case information.
- Citation
- [2022] KEBPRT 36 (KLR)
- Parties
- Applicant: Peter Macharia Kagiri; Applicant: James Mwangi Njoroge; Applicant: Pius Mwaura Karanja; Applicant: Kennedy Mwangi Mbatia; Applicant: Gerald Ngatia Watoro; Applicant: Simon Ng’ang’a Muiruri; Applicant: Joseph Mwangi Kariuki; Applicant: Joshua Kiari; Applicant: John Muhia Kanotha; Respondent: Florence Ngina Kanyiri; Respondent: Mary Wangechi Kanyiri
- Court
- Business Premises Rent Tribunal
- Jurisdiction
- Kenya
- Case Number
- Tribunal Case 1, 2, 3, 4, 5, 6, 7, 8 & 9 of 2018
- Procedural Posture
- Rent Restriction Reference / Ruling
- Outcome
- tenant's reference dismissed; landlord's notice to increase rent approved
- Legal Topics
- Business Premises Rent, Rent Increase Dispute, Valuation Evidence, Statutory Tenancy, Market Rent Assessment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Peter Macharia Kagiri
Applicant
James Mwangi Njoroge
Applicant
Pius Mwaura Karanja
Applicant
Kennedy Mwangi Mbatia
Applicant
Gerald Ngatia Watoro
Applicant
Simon Ng’ang’a Muiruri
Applicant
Joseph Mwangi Kariuki
Applicant
Joshua Kiari
Applicant
John Muhia Kanotha
Applicant
Florence Ngina Kanyiri
Respondent
Mary Wangechi Kanyiri
Respondent
Procedural Posture
Rent Restriction Reference / Ruling
Legal Issues
- 1 Whether the landlord's notice to increase rent to Kshs 32,000 per month is justified under Cap 301.
- 2 Whether the tenant's reference objecting to the rent increase should be upheld or dismissed.
Ratio Decidendi
The tribunal found that the only substantive evidence before it was the landlord's valuation report, which assessed the fair market rent for the premises at Kshs 32,000 per month. The tenants failed to file any counter-valuation or evidence to dispute the landlord's assessment. The tribunal reviewed the comparables in the landlord's report, noting that rents for similar shops ranged from Kshs 70 to Kshs 110 per square foot per month, and found the landlord's assessment reasonable. Consequently, the tribunal approved the landlord's notice to increase rent and dismissed the tenants' reference, holding that the landlord had discharged the burden of proof and the tenants had not rebutted the...
Court Disposition
tenant's reference dismissed; landlord's notice to increase rent approved
Orders
- The landlord's notice to increase rent dated 24th October 2017 is approved in its entirety.
- The tenant shall pay rent at the rate of Kshs 32,000 per month with effect from 1st March 2022.
Full Case Text
Judgment text and source record
35 paragraphs
REPUBLIC OF KENYA
BUSINESS PREMISES RENT TRIBUNAL
VIEW PARK TOWERS 7TH & 8TH FLOOR
TRIBUNAL CASE NO. 1, 2, 3, 4, 5, 6, 7, 8 AND 9 AND 2018 (THIKA)
PETER MACHARIA KAGIRI........................................................TENANT/1ST APPLICANT
JAMES MWANGI NJOROGE........................................................TENANT/2ND APPLICANT
PIUS MWAURA KARANJA............................................................TENANT/3RD APPLICANT
KENNEDY MWANGI MBATIA......................................................TENANT/4TH APPLICANT
GERALD NGATIA WATORO.........................................................TENANT/5TH APPLICANT
SIMON NG’ANG’A MUIRURI........................................................TENANT/6TH APPLICANT
JOSEPH MWANGI KARIUKI.........................................................TENANT/7TH APPLICANT
JOSHUA KIARI..................................................................................TENANT/8TH APPLICANT
JOHN MUHIA KANOTHA...............................................................TENANT/9TH APPLICANT
VERSUS
FLORENCE NGINA KANYIRI..............................................LANDLORD/1ST RESPONDENT
MARY WANGECHI KANYIRI..............................................LANDLORD/2ND RESPONDENT
RULING
1. The Landlord in this matter issued a notice to terminate/alter terms of tenancy dated 24th October 2017. The alterations which the Landlord proposed in the said notice were;
“To increase your monthly rent to Kshs 32,000/-“and the grounds on which the alterations was sought are;
“The current rent paid is below the market rent.”
2. The Tenant, disagreeing with the said notice to increase rent filed a reference under section 6 of Cap 301. The reference is the one dated 13th June 2018.
3. The Landlord has filed a valuation report in support of her notice to increase rent. The Tenant has not filed any valuation report and neither has he responded in any other manner save for the filing of the reference.
4. According to the valuation report filed by the Landlord, the Tenant herein occupies a lettable area of 367 square feet at the front and 70 square feet at the rear. The Tenant is on the ground floor of the suit premises. The Tenant pays a monthly rent of Kshs 7,000/- at the rate of Kshs 17/- per square foot per month for the shop space and Kshs 14/- per square feet per month for the store.
5. The recommended, assessed rate in the Landlord’s valuation report is Kshs 80/- per square foot per month for the shop space and Kshs 40/-per square foot per month for the store space. The assessed rent payable then comes to Kshs 32,000/- per month.
6. As observed earlier, the Tenant did not file any valuation report. The only evidence placed before the Tribunal is therefore the valuation report by the Landlord. I note that on the said report, rent paid for comparables (shops) rage from Kshs 70/- per square foot per month to Kshs 110/- per square foot per month and Kshs 55/- per square foot per month for the rear space. I do find the assessment by the Landlord’s valuers to be reasonable and I adopt the said assessment.
7. Consequently, the Landlord’s notice to increase rent dated 24th October 2017 is approved in its entirety. The Tenant shall pay rent at the rate of Kshs 32,000/- per month with effect from 1st March 2022.
8. The Tenant’s reference dated 13th June 2018 is dismissed with costs to the Landlord.
9. This ruling applies to Mr Kennedy Mwangi Mbatia the 4th Applicant/Tenant.
HON. CYPRIAN MUGAMBI NGUTHARI
CHAIRMAN
BUSINESS PREMISES RENT TRIBUNAL
Ruling dated, signed and delivered virtually by Hon P. May (Vice Chair)this16th February 2022in the presence of Kithinjifor theLandlordsand in the absence of theTenants.
HON. P. MAY
VICE CHAIR
BUSINESS PREMISES RENT TRIBUNAL