East African Seeds Company Limited v Kaushik M Shah & another [2019] KEELC 3027 (KLR)
The bottom line
#A Kenyan court confirmed that a Tribunal-assessed rent of Kshs.381,272 per month was fair, upholding the landlord's rent increase.
What this practically means
#Executive summary
#Key legal issues
#Correct mode of assessment of standard rent
The Tribunal Chairperson applied a proper method by analysing the comparables in both valuation reports, giving reasons for the comparables chosen, and averaging the parties' findings in line with the guiding principles
Both valuers adopted the comparable approach using premises in the same locality. The Chairperson analysed comparables from both reports, gave reasons for choosing comparable No. 9 from the Appellant's report and No. 3 from the Respondent's report, and took an average between the parties' findings. The lettable area was undisputed and both reports described the premises as in good condition. The averaging of the parties' proposed rents using the comparables was a legitimate application of the guiding principles.
Whether the assessed rent was exorbitant
The assessed rent of Kshs.381,272/= was not exorbitant; it fell between the parties' proposals and reflected the guiding principles
The Chairperson was aware the previous rent was Kshs.290,480/=. The Appellant proposed Kshs.290,300/= and the Respondents Kshs.445,500/=; the assessed figure of Kshs.381,272/= was an average of the two arrived at using the comparables, taking into account the guiding principles. The Appellant's claims that the building was old and in a noisy congested area were unsupported by the valuation reports, which described the premises as sound and in good condition.
Validity of the 2015 rent increment notice
The increment notice was valid because the two-year period since the last assessment in 2013 had lapsed
The rent was last assessed in 2013 and the law permits review after two years from a previous assessment. The 2015 notice of increase was therefore properly issued by the landlords.
Legal principles established
#- Guiding principles for assessment of standard rent include the age of the building, amenities or services provided by the landlord, location, rent for the past three years, original cost of construction, and improvements and their cost
- A landlord may review rent after two years from a previous assessment
- A first appellate court must evaluate the evidence tendered and arrive at its own conclusion
Court orders
#- 1.The appeal is dismissed
- 2.Costs of the appeal awarded to the Respondents
- On appeal from
- Business Premises Rent Tribunal
- Not stated in judgment
- Jurisdiction invoked
- First appellate jurisdiction over the Business Premises Rent Tribunal (statutory appeal; provision not cited in judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Stephen Atallo Nyamanga v Anchor Investment Limited (Environment and Land Appeal 46 of 2018) (Environment and Land) [2020] KEELC 2613 (KLR)[2020] KEELC 2613 (KLR)6 May 2020followed
Cite this brief
#Cite this brief
Caselaw, "East African Seeds Company Limited v Kaushik M Shah & another [2019] KEELC 3027 (KLR)", Case Analysis (2019). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2019/3027/eng@2019-05-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.