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ELCPartially AllowedELC Appeal No 7 of 2018· [2019] KEELC 2797 (KLR)

Edward Mungatana v Real Appraisal Limited & another [2019] KEELC 2797 (KLR)

Environment and Land Court
3 June 2019
KBK. BOR
1,152 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Rent Restriction Tribunal cannot handle disputes over homes renting above Kshs 2,500 monthly, so its orders in high-rent tenancies are invalid.

What this practically means

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Executive summary

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The Environment and Land Court at Nairobi allowed an appeal under Section 8 of the Rent Restriction Act against a judgment of the Chairman of the Rent Restriction Tribunal, H.K. Korir, delivered on 25 January 2018. The underlying dispute concerned House G5-2 at Muthaiga North Pipeline Estate. The Respondent tenant had sought injunctive orders restraining eviction; the Appellants landlords counterclaimed for rent arrears and possession. The Tribunal ordered the tenant to deliver vacant possession within 30 days, disallowed the landlord's counterclaim for rent arrears, and directed each party to bear its own costs. On appeal, the Appellants raised four grounds, chief among them that the Tribunal lacked jurisdiction because the monthly rent (Kshs. 150,000) far exceeded the Kshs. 2,500 ceiling in Section 2 of the Rent Restriction Act. Citing the Lillian 'S' jurisdiction principle and superior court decisions on the Tribunal's rent ceiling, the Appellants contended the proceedings were a nullity. The Respondent filed no submissions. Justice K. Bor framed a single issue: whether the Tribunal had jurisdiction. Holding that Section 2 excludes dwelling-houses with a standard rent exceeding Kshs. 2,500 per month, and that the evidence showed rent of Kshs. 150,000, the court found the Tribunal had no jurisdiction, allowed the appeal, and set aside the Tribunal's orders. However, because the jurisdictional point had not been raised before the Tribunal, each party was ordered to bear its own costs of the appeal.

Key legal issues

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01

Whether the Rent Restriction Tribunal had jurisdiction over a tenancy with a monthly rent of Kshs. 150,000

Holding

The Tribunal had no jurisdiction because the rent far exceeded the Kshs. 2,500 statutory ceiling in Section 2 of the Rent Restriction Act

Reasoning

The court applied Section 2 of the Rent Restriction Act Cap 296, which excludes dwelling-houses with a standard rent exceeding two thousand five hundred shillings per month from the Act's application. The evidence before the Tribunal showed the monthly rent was Kshs. 150,000. Following the Lillian 'S' principle that jurisdiction is everything and a court without jurisdiction must down its tools, the Tribunal's orders could not stand.

p. 2

Legal principles established

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  • The Rent Restriction Act does not apply to dwelling-houses with a standard rent exceeding two thousand five hundred shillings per month, furnished or unfurnished, and the Rent Restriction Tribunal therefore lacks jurisdiction over disputes arising from such tenancies.

Court orders

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  1. 1.The appeal is allowed
  2. 2.The orders of the Rent Restriction Tribunal are set aside
  3. 3.Each party to bear its own costs of the appeal

Authorities

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Legislation

  • Rent Restriction ActSection 2
  • Rent Restriction ActSection 8
  • Civil Procedure ActSection 27

Cases cited (4)

  • The Owners of the Motor Vessel Lillian 'S' v Caltex Kenya Limited
    (1989) KLR 1
  • George Owino Mulanya & 4 others v Charles Achieng Odonga & Another
    Petition No. 264 of 2017
  • Republic v Chairman, Rent Restriction Tribunal & 2 others Ex-parte Agatha Njoki Mwangi
    Nairobi JR Application No. 174 of 2014
  • Republic v Deputy Chairman Rent Restriction & Another ex-parte Benedict Wambua Kenzi
    Mombasa JR Application No. 49 of 2015
On appeal from
Rent Restriction Tribunal
Case No. 1498 of 2016
Jurisdiction invoked
Section 8 of the Rent Restriction Act (appeal), with jurisdiction challenge under Section 2 of the Rent Restriction Act Cap 296

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, "Edward Mungatana v Real Appraisal Limited & another [2019] KEELC 2797 (KLR)", Case Analysis (2019). ELC Appeal No 7 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/2797/eng@2019-06-03

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