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ELCDismissedELCA 7 of 2020· [2021] KEELC 2998 (KLR)

Simon Macharia Kairu v John S Njire Maina [2021] KEELC 2998 (KLR)

Environment and Land Court of Kenya
3 June 2021
2,254 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan landlord's ownership dispute in another court did not stop his valid termination notice from ending a tenant's protected business tenancy.

What this practically means

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Executive summary

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This was a first appeal to the Environment and Land Court at Murang'a against the judgment of the Business Premises and Rent Restriction Tribunal (Chairman Mbichi Mboroki) delivered on 27 May 2020, which dismissed the Tenant/Appellant's reference and upheld the Landlord/Respondent's notice of termination of tenancy in respect of Plot No. LOC.11/Maragia/1193/82. The Respondent had served a notice dated 5 June 2017 under Section 4(2) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, stating an intention to demolish existing structures and erect a five-storey building, relying on Section 7(1)(e) of the Act. The Appellant argued before the Tribunal and on appeal that the Respondent's ownership was disputed in a separate suit (Murang'a ELC No. 195 of 2018, to which the Appellant was not a party), and that the Tribunal should have stayed its proceedings and protected him from eviction. J. G. Kemei J framed three issues: the Respondent's right to issue the notice; whether the parallel court proceedings stayed the Tribunal proceedings; and whether the appeal was merited. The court held that the Tribunal's jurisdiction under Section 12 excluded ownership disputes, that the landlord-tenant relationship was established by the registered proprietorship and by the Appellant's payment of rent, that no stay order existed and the Tribunal could not stay its proceedings suo moto, and that the uncontroverted development documents justified termination. Applying Ephantus Mwangi v Duncan Mwangi Wambugu, the court found no basis to interfere and dismissed the appeal with costs to the Respondent.

Key legal issues

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01

Whether the Respondent, whose ownership was disputed in another suit, had the right to issue a termination notice

Holding

Yes; the Tribunal had found the Respondent to be the registered proprietor and landlord, and rent payment conduct confirmed the landlord-tenant relationship

Reasoning

The chairman found the Respondent to be the registered proprietor of the suit premises as at 5/6/2017, and the parties' conduct of paying rent established the landlord-tenant relationship. Challenges to ownership lie outside the Tribunal's jurisdiction under Section 12, so the notice's validity could not be defeated by the ownership dispute. Grounds one and three therefore failed.

p. 3
02

Whether the pending ownership suit (Murang'a ELC No. 195 of 2018) stayed the Tribunal proceedings

Holding

No; there was no stay order and the Tribunal could not stay its own proceedings suo moto; moreover the Appellant was not a party to that suit

Reasoning

The court noted the ownership suit involved distinct facts and that the Appellant had sought joinder but was refused. In the absence of a stay order, the Tribunal was bound to proceed and determine the reference before it. Ground two accordingly failed.

p. 3
03

Whether the termination notice complied with Section 7(1)(e) of the Act

Holding

Yes; the Respondent intended to demolish and construct a five-storey building, supported by uncontroverted documents, and gave six months' notice

Reasoning

The notice dated 5/6/2017 gave six months to vacate, and the Respondent produced unchallenged documents evidencing permits and intention to develop. The Appellant did not challenge the enforceability of the notice itself.

p. 3
04

Whether the Tribunal failed in its protective mandate or predetermined the outcome

Holding

No; the Tribunal acted within Section 9 of the Act and the allegation of predetermination lacked evidential support

Reasoning

The court found the chairman properly exercised his powers in dismissing the reference and allowing the notice, and the Appellant produced no evidence supporting the allegation of a predetermined outcome.

p. 3

Legal principles established

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  • The Tribunal's jurisdiction under Section 12 of the Landlord and Tenant Act does not extend to determining ownership of the suit premises
  • An appellate court may re-evaluate the facts and evidence of the trial forum but will hesitate to reverse findings of fact absent material error

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs of the appeal awarded to the Respondent

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 4(2)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 7(1)(e)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 12
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 9

Cases cited (2)

  • Selle vs. Associated Motor Boat Co.
    {1968} EA 123
  • Ephantus Mwangi & Another vs. Duncan Mwangi Wambugu
    {1982} 1 KAR 278
On appeal from
Business Premises and Rent Restriction Tribunal (BPRT)
Nairobi BPRT No. 50 of 2017
Jurisdiction invoked
First appeal under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act from the Business Premises and Rent Restriction Tribunal

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, "Simon Macharia Kairu v John S Njire Maina [2021] KEELC 2998 (KLR)", Case Analysis (2021). ELCA 7 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/2998/eng@2021-06-03

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