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ELCDismissedBPRT Appeal (Mombasa)· [2021] KEELC 3062 (KLR)

Yusuf Abdulswamad v Haithar Haji Abdi [2021] KEELC 3062 (KLR)

Environment and Land Court / High Court at Mombasa
25 May 2021
2,531 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's High Court in Mombasa confirmed a landlord can terminate a tenancy for two months' rent arrears, even after tolerating late payments.

What this practically means

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Executive summary

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This was a first (and final) appeal against the decision of the Chairman of the Business Premises Rent Tribunal (Mr. Mbichi Mboroki) delivered on 5th July 2019 in BPRT No. 122 of 2018 (Mombasa), which dismissed the tenant's reference and upheld the landlord's notice terminating the tenancy on account of irregular and late payment of rent. The appellant advanced six grounds, principally that the Tribunal ignored Cap 301 by misinterpreting Sections 7(1)(b), 9(1)(a) and 9(2)(b); that it disregarded Section 120 of the Evidence Act and the equitable doctrines of waiver, estoppel and acquiescence arising from a long-standing, mutually agreed pattern of paying rent sometimes in advance and sometimes in arrears; that the landlord's sole witness was incompetent and his evidence hearsay; and that the Tribunal failed to consider the appellant's written submissions. The appeal was disposed of by written submissions. C.K. Yano J, mindful of the duty on a first appeal to re-evaluate the evidence, framed two issues: whether the respondent's evidence was hearsay, and whether the Chairman misinterpreted Section 120 of the Evidence Act and the cited provisions of Cap 301. The court held that the landlord's son, who managed the suit properties, was a competent witness under Section 125(1) of the Evidence Act and that his testimony was not hearsay, as it concerned facts within his knowledge and his lack of written authority was immaterial. On estoppel, the court found the appellant admitted paying rent in arrears, advance payments being made only at the landlord's request, and that being in arrears for two months breached Section 7(1)(b). The Chairman was held to have correctly exercised his discretion in terminating the tenancy. The appeal was dismissed with costs to the respondent.

Key legal issues

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01

Whether the respondent's witness (the landlord's son and property manager) was competent and whether his evidence was hearsay

Holding

The witness was competent and his evidence was not hearsay; he testified on facts within his knowledge as property manager, and lack of written authority did not render his evidence hearsay.

Reasoning

Section 125(1) of the Evidence Act renders all persons competent to testify unless prevented by tender years, extreme old age, disease or similar cause. The witness managed the suit properties and communicated with the tenant on rent, so he fell within no exception. Non-payment and varied payment were documented and admitted by the appellant himself, so the evidence was on facts within his knowledge and not hearsay.

p. 2
02

Whether the Tribunal misapplied Section 120 of the Evidence Act and the equitable doctrines of waiver, estoppel and acquiescence

Holding

Estoppel did not avail the appellant; payments in advance were made only at the landlord's request, and the appellant admitted paying in arrears. The landlord's tolerance of irregular payment did not waive his statutory right to terminate.

Reasoning

Section 120 requires that a person have intentionally caused or permitted another to believe a thing true and act on that belief. The evidence showed the appellant admitted paying rent in arrears and that advance payments were made only at the landlord's request. The Tribunal found the tenant in arrears of two months, a breach of Section 7(1)(b) of Cap 301, so the Tribunal's findings could not be faulted.

p. 3
03

Whether the Tribunal wrongly interpreted Sections 7(1)(b), 9(1)(a) and 9(2)(b) of Cap 301 in terminating the tenancy

Holding

The Tribunal correctly applied its discretion under the Act; proof of persistent default was made and termination was justified.

Reasoning

Section 7(1)(b) permits termination where a tenant defaults for two months or persistently delays paying rent. The Tribunal found, and the court affirmed, that the tenant was in arrears for two months as at 31st July 2018. The Chairman considered the parties' evidence, including the tolerated irregular payment pattern, and still exercised his discretion to terminate. The court found no misinterpretation of the statutory provisions.

p. 3

Legal principles established

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  • All persons are competent to testify unless they fall within the exceptions in Section 125(1) of the Evidence Act; a property manager's testimony on facts within his knowledge is not hearsay for want of written authority.
  • Termination of a tenancy is justified under Section 7(1)(b) of Cap 301 where the tenant is persistently in arrears, notwithstanding an established irregular mode of payment tolerated by the landlord; condonation of irregular payment does not amount to waiver of statutory rights.

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent.
  2. 2.The decision of the Tribunal dismissing the appellant's reference and upholding the notice of termination is affirmed.

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301)Sections 4(2), 7(1)(b), 9(1)(a), 9(2)(b); long title
  • Evidence Act (Cap 80)Sections 120, 125(1)
  • Constitution of KenyaArticle 10(2)(a)

Cases cited (6)

  • Willy Kimutai Kitilit -v- Michael Kibet
    (2018)eKLR
  • Serah Njeri Mwobi -v- John Kimani Njoroge
    (2013)eKLR
  • Shabbir Motors Spares Ltd -v- Mohamed Salim Mohamed & 2 Others
    (2002)eKLR
  • Provincial Construction Company Ltd & Another -v- The Attorney General
    (1991)KLR
  • Charles Okoth -v- Abdulrahman Hamumy
    (2018)eKLR
  • Mohamed Bwana Bakari -v- Salha Abdulatif
    (2018)eKLR
On appeal from
Business Premises Rent Tribunal, Mombasa
BPRT No.122 of 2018
Jurisdiction invoked
First (and final) appeal 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, "Yusuf Abdulswamad v Haithar Haji Abdi [2021] KEELC 3062 (KLR)", Case Analysis (2021). BPRT Appeal (Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/3062/eng@2021-05-25

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