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ELCDismissedELC Civil Appeal No. 33 of 2017· [2019] KEELC 1523 (KLR)

Cyprianus Okoth Okere v Nacico Sacco Society Limited [2019] KEELC 1523 (KLR)

Environment and Land Court
25 September 2019
2,683 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan tenant lost his appeal because receipts prove rent payment, not cheque stubs, and an unpaid two-month default justifies eviction.

What this practically means

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Executive summary

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This was an appeal to the Environment and Land Court at Nairobi against the judgment of Mr. Mbichi Mboroki, Chairman of the Business Premises Rent Tribunal, delivered on 18th August 2017 in BPRT Case No. 41 of 2013, which dismissed the appellant tenant's reference, upheld the landlord's notice to terminate tenancy, ordered the tenant to vacate by 1st September 2017, and granted leave to levy distress for arrears of Kshs.157,873. The appellant, a tenant of the respondent Sacco since 2001, contended that the tribunal erred in finding arrears without a rent book as required by section 3(3) of Cap 301, that he had actually overpaid rent by Kshs.21,809, and that his evidence and submissions were not analysed. The respondent maintained that the tenant was persistently in arrears, admitted the arrears by letter dated 4th February 2010 proposing instalment payments, and that cheque stubs were not proof of rent payment. Justice L. Komingoi reviewed the tribunal evidence, including the testimony of the landlord's property manager Jane Mukindia and the appellant's own cross-examination admissions. The court held that although the landlord is obliged to maintain a rent book, failure to do so was not fatal because proof of payment is by receipts, all of which the respondent produced; cheque stubs were not evidence of rent payment. The appellant failed to prove any overpayment, and his written admission of arrears was irreconcilable with his claim. Applying section 7(1)(b) of Cap 301 and the Dorca Ondieki Gisege authority, the court found the termination notice justified. The appeal was dismissed with costs to the respondent, and the appellant was given sixty days to vacate, failing which lawful eviction could follow.

Key legal issues

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01

Whether failure by the landlord to maintain a rent book defeated the claim for rent arrears

Holding

Failure to keep a rent book was not fatal to the landlord's case because proof of payment is by receipts, and the respondent produced all receipts issued

Reasoning

The court accepted that under section 3(3) of Cap 301 the landlord is responsible for maintaining a rent book in a controlled tenancy. However, it held that the statutory obligation does not displace the evidentiary rule that proof of payment is by receipts. The respondent produced all receipts issued to the appellant, whereas the appellant relied only on cheque stubs which, being ambiguous as to purpose, were not proof of rent payment. Failure to keep the rent book therefore did not undermine the respondent's case.

p. 3
02

Whether the appellant proved an overpayment of rent

Holding

The appellant failed to prove any overpayment; his own letter of 4th February 2010 admitted arrears and proposed instalment payments

Reasoning

The appellant claimed an overpayment of Kshs.21,809 between 2001 and 2012, but produced no evidence of overpayment at trial. Instead, his letter of 4th February 2010 admitted arrears of Kshs.172,484 and proposed paying Kshs.5,000 monthly plus the monthly rent. The court found he never denied writing that letter and did not then raise any issue of reconciliation. The tribunal's reliance on the landlord's statements of account, which the landlord's manager maintained were correct, could not be faulted.

p. 3
03

Whether the notice to terminate tenancy was justified

Holding

The notice was justified in law and proved; the tenant was persistently in arrears when it was issued

Reasoning

Applying section 7(1)(b) of Cap 301 and the authority of Dorca Ondieki Gisege, the court held that a landlord may terminate where the tenant has defaulted for two months or persistently delayed payment. The evidence showed the tenant was in arrears when the notice was issued, admitted arrears in writing, and defaulted on his own payment proposal. The chairman therefore acted properly in upholding the notice and dismissing the tenant's reference.

p. 4

Legal principles established

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  • Under section 7(1)(b) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, a landlord may terminate a controlled tenancy where the tenant has defaulted in paying rent for two months after it becomes payable or has persistently delayed payment
  • While the landlord must maintain a rent book, proof of payment of rent is by receipts; cheque stubs are not evidence of payment of rent

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent
  2. 2.The appellant is given sixty (60) days from the date of the judgment to vacate and hand over vacant possession of the premises, in default the respondent/landlord may evict him using lawful means

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301Section 3(3)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301Section 4(4)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301Section 7(1)(b)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301Third Schedule (implied terms)

Cases cited (3)

  • Kenya Pipeline Company Limited vs Glencore Energy (UK) Ltd
    Nairobi Civil Appeal No. 67 of 2014
  • Dorca Ondieki Gisege vs Nyakarangania Farmers Cooperative Society
    (2010) eKLR
  • Amos Wenyere & another vs Ashford Murithi Muregi & 2 Others
    [2017] eKLR
On appeal from
Business Premises Rent Tribunal
BPRT Case No. 41 of 2013 Nairobi
Jurisdiction invoked
Appeal to the Environment and Land Court from the Business Premises Rent Tribunal under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Cyprianus Okoth Okere v Nacico Sacco Society Limited [2019] KEELC 1523 (KLR)", Case Analysis (2019). ELC Civil Appeal No. 33 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/1523/eng@2019-09-25

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.