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ELCDismissedNairobi BPRT Appeal (number not stated in judgment)· [2019] KEELC 1769 (KLR)

Asumpter Wangari Njenga v Bonaventure Mwangi Njoga [2019] KEELC 1769 (KLR)

Environment and Land Court, Nairobi
19 September 2019
3,237 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court confirmed that a landlord who retires, saves Kshs 10 million, forms a company and gets a licence can lawfully end a tenant's lease for personal occupation.

What this practically means

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Executive summary

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This is a first appeal from the Business Premises Rent Tribunal, which had dismissed the appellant tenant's reference challenging the landlord's statutory notice of termination of a controlled tenancy on LR Number 209/1354, Ngara, Nairobi, issued under Section 4 of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act on the ground of intended personal occupation for over one year. The appeal raised three issues: whether the Tribunal's jurisdiction was ousted by the landlord's agents' letter of 25/8/2015 offering a six-year renewal; whether the Tribunal erred in not finding the landlord's intended business illegal; and whether the Tribunal failed to weigh the totality of the evidence. On the first issue, the court held that the appellant, who held the letter before lodging the reference and never objected to the Tribunal's jurisdiction there, could not raise jurisdiction for the first time on appeal, applying the Supreme Court's decision in Mohamed Abdi Mohamed against introduction of fresh issues. On the second, the court agreed with the Tribunal that the suitability of the intended business was for licensing authorities, and that the environmental expert's report lacked the project proponent's input and was procured improperly. On the third, the court found the respondent had satisfied Section 7(1)(g): he retired from employment, set aside Kshs 10,000,000, produced bank statements, incorporated a one-man company as his business vehicle and obtained a county licence, with no evidence the company belonged to a third party. The appeal was dismissed with costs to the respondent, affirming the Tribunal's judgment.

Key legal issues

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01

Whether the Sedco letter of 25/8/2015 created a six-year tenancy ousting the Tribunal's jurisdiction

Holding

The jurisdictional issue could not be raised for the first time on appeal since the appellant never raised it before the Tribunal and fully ventilated her case there

Reasoning

The appellant lodged the reference in the Tribunal in possession of the 25/8/2015 letter but never objected to the Tribunal's jurisdiction. Jurisdiction was not among the issues the Tribunal was invited to determine. Having fully ventilated her case on the premise that the Tribunal had jurisdiction, she could not raise the issue on appeal after an unfavourable finding. Raising a fresh issue on appeal is impermissible per the Supreme Court in Mohamed Abdi Mohamed.

p. 3
02

Whether the Tribunal erred in failing to find the respondent's intended business illegal

Holding

The Tribunal did not err; suitability of the business was a matter for licensing authorities and the expert report lacked the project proponent's input

Reasoning

The Tribunal found the suitability question hypothetical, as it could only be considered by licensing authorities upon application. Antony Muiruri's report was authored without the respondent's consent or involvement, contravening the NEMA Code of Practice, and lacked the proponent's input on the business details and mitigating measures. The court agreed with the Tribunal's treatment of that evidence.

p. 3
03

Whether the respondent satisfied Section 7(1)(g) of the Act - intention to occupy for own business

Holding

The respondent met the statutory requirements: he retired, set aside Kshs 10,000,000, incorporated a one-man company as his business vehicle and procured a county licence

Reasoning

The respondent testified he retired from formal employment and set aside Kshs 10,000,000 for the intended business, producing bank statements. He incorporated Bonwanjo Knitters Embroidery Limited as a one-man company to use as his business vehicle and obtained a County Government licence. There was no controverting evidence that the company belonged to a third party, so occupation through the company did not defeat the requirement.

p. 4

Legal principles established

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  • A litigant in an appellate court is not at liberty to introduce fresh issues which were not canvassed or pronounced on in the lower court
  • An appellate court will not interfere with the trial court's findings of fact unless they are based on no evidence, on a misapprehension of evidence, or the trial court acted on wrong principles

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The respondent shall have costs of the appeal

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 4
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 7 and Section 7(1)(g)
  • Law of Contract ActSection 3
  • Land ActSection 38
  • Code of Practice and Professional Ethics for Integrated Environmental Assessment and Audit ExpertsSection 6

Cases cited (2)

  • Ephantus Mwangi & Another vs. Duncan Mwangi Wambugu
    (1982) IKAR 278
  • Mohamed Abdi Mohamed v Ahmed Abullahi Mohamad & 3 others; Ahmed Ali Mukta (Interested Party)
    [2019] eKLR
On appeal from
Business Premises Rent Tribunal (Chairman Hon Mbichi Mboroki)
Nairobi BPRT Case Number 163 of 2017
Jurisdiction invoked
First appellate jurisdiction over the Business Premises Rent Tribunal under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act

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, "Asumpter Wangari Njenga v Bonaventure Mwangi Njoga [2019] KEELC 1769 (KLR)", Case Analysis (2019). Nairobi BPRT Appeal (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/1769/eng@2019-09-19

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