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ELCDismissedEnvironment and Land Appeal 4 of 2020· [2023] KEELC 18347 (KLR)

Kiruja & 4 others v Mugambi Zakayo Nteere Ltd

Environment and Land Court at Meru
21 June 2023
3,632 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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 Meru against the judgment of the Chairman of the Business Premises Rent Tribunal (Mr. Mbichi Mboroki) in BPRT Case Nos 67, 68, 69, 70 and 71 of 2018, delivered on January 17, 2020. The respondent landlord had served the appellants, its tenants on plot No. 127 Nkubu, with notices dated February 16, 2018 terminating their tenancies effective April 17, 2018 on grounds of non-payment of rent. The tenants' references under section 6 of Cap 301 were dismissed by the tribunal, which found all tenants in arrears of at least two months and upheld the notices, ordering vacant possession, distress for arrears and costs. On appeal, the appellants contended the notices were defective under section 4(4) of Cap 301, that service was never proved, that rent had been faithfully paid, and that the landlord estopped himself by refusing rent and withholding bank details. Yano J framed five issues and held that the notices, giving exactly two months, conformed with section 4(4); that service was proved or at least not disputed before the tribunal and could not be raised for the first time on appeal; that rent arrears constituted sufficient cause for termination; and that there was no evidence the landlord returned rent or that tenants complained of frustration. The tribunal's findings were affirmed and the appeal was dismissed with costs to the respondent.

Key legal issues

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01

Service and validity of the termination notices

Holding

The notices dated February 16, 2018 terminating tenancies from April 17, 2018 were properly served and conformed with section 4(4) of Cap 301

Reasoning

The notice period was exactly two months, meeting the statutory minimum of 'not less than two months'. The 2nd appellant's own testimony referred to notices having been served, from which the court inferred service of the February 16, 2018 notices. None of the appellants disputed service at the tribunal, and leave to file the references out of time had been granted, so the service issue could not be raised for the first time on appeal through submissions.

02

Sufficient cause for termination - non-payment of rent

Holding

There was sufficient cause to terminate the tenancies as the tribunal's finding of rent arrears was supported by the evidence

Reasoning

The tribunal found all tenants in arrears of at least two months when the notices were served, with substantial arrears persisting at the hearing. There was no evidence the landlord returned rent monies or that tenants complained to the landlord or tribunal about frustration in paying rent. Tenants could have disproved non-payment by showing payment up to the notice date, but no such evidence was adduced before the tribunal or the court.

03

Alleged frustration of rent payment by the landlord

Holding

The claim that the landlord frustrated payment by refusing rent and withholding bank details was not proved

Reasoning

The court perused the tribunal evidence and found nothing showing the respondent returned monies paid towards rent, nor any complaint by the appellants to the respondent or the tribunal about alleged frustration. The tribunal had made a similar finding, and the court saw no basis to interfere with it.

p. 6

Legal principles established

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  • A termination notice specifying a period of exactly two months conforms with section 4(4) of Cap 301, which requires not less than two months after receipt
  • A tenant alleging non-payment of rent as ground of termination can disprove it only by evidence of payment up to the date of the notice; absence of complaint of frustration defeats the allegation

Court orders

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  1. 1.The appeal is dismissed with costs to the respondent

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 4(4)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 6
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSection 12(4)
  • Evidence ActSection 119

Cases cited (4)

  • Fredrick Mutua Mulinge t/a Kitui Uniform v Kitui Teachers Housing Cooperative Society Limited
    [2017] eKLR

    Cited by appellants on mandatory notice requirements under Cap 301

  • Anne Mwaura and 9 others vs David Wagatua Gitau & 2 others
    [2010] eKLR

    Cited within the Kitui Uniform case on notice periods

  • Caledonia Supermarket Ltd vs Kenya National Examinations Council
    (2002) 2EA 357

    Failure to comply with mandatory notice requirements renders notices null and void

  • Siamani Farmers Co. Ltd vs Japheth M. Nyaramba t/a Boburia Stores
    [2008] eKLR

    Cited by appellants on notice validity and alleged frustration of rent payment

On appeal from
Business Premises Rent Tribunal (Meru)
BPRT Case Nos 67, 68, 69, 70 and 71 of 2018 (Meru)
Jurisdiction invoked
First 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, "Kiruja & 4 others v Mugambi Zakayo Nteere Ltd", Case Analysis (2023). Environment and Land Appeal 4 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/18347/eng@2023-06-21

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