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ELCPartially AllowedEnvironment and Land Case 207 of 2019· [2023] KEELC 21781 (KLR)

Wambui v Frann Investment

Environment and Land Court
28 November 2023
21,878 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~88 min to read original · ~4 min brief

The bottom line

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A Mombasa court ordered a landlord to pay a tenant over Kshs. 62 million for locking him out of leased premises without a court order.

What this practically means

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Executive summary

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The Plaintiff leased a restaurant/bar space on the first floor of the Defendant's building at Mtwapa under a ten-year lease dated 31st December 2011, with a covenant of quiet enjoyment. He alleged that in December 2016 the Defendant's directors harassed him over rent, locked up the premises and detained his tools of trade, constructively evicting him without notice or court order, and later demanded Kshs. 14,384,000 in arrears. He sought a permanent injunction, general damages for derogation from grant and unlawful constructive eviction, and reimbursement of the value of goods detained. The Defendant denied eviction, asserting the Plaintiff closed his bar, partially removed goods and fell into rent arrears; it counterclaimed for Kshs. 16,008,000 rent arrears, eviction, mesne profits, removal of a caveat and damages under Section 75 of the Land Registration Act. The court framed four issues and found the lease valid under Section 3(3) of the Law of Contract Act. DW-1 admitted the Plaintiff had overpaid rent, and the court held the Defendant breached the lease by locking the premises without a court order or termination notice, amounting to unlawful constructive eviction. Relying on Section 77 of the Land Act, it held the Plaintiff was relieved of rent obligations for the dispossession period and dismissed the rent-based Counter-Claim. The court declined the permanent injunction as academic, awarded damages as pleaded totalling Kshs. 62,047,350, ordered the caveat lifted upon payment, and awarded the Plaintiff costs. This is an Amended Judgment following a review ruling of 18th March 2024.

Key legal issues

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01

Validity of the lease agreement

Holding

The lease dated 31st December 2011 was valid, in writing, signed by the parties and enforceable, satisfying Section 3(3) of the Law of Contract Act

Reasoning

The court applied Section 3(3) of the Law of Contract Act and Section 38 of the Land Act, finding the lease in writing, signed and attested, containing parties' names, property description and terms. The existence of the valid agreement was undisputed and therefore enforceable by the parties.

p. 27
02

Whether the Defendant breached the lease by constructive eviction

Holding

The Defendant breached the lease by locking up the premises and restricting the Plaintiff's access when he was not in rent arrears, amounting to unlawful constructive eviction

Reasoning

The court found the Plaintiff had met rent obligations until 2016 and DW-1 admitted the Plaintiff had overpaid rent. Locking the premises without a court order or termination/distress notices was unlawful. The court relied on authorities condemning extra-judicial repossession by landlords.

p. 30
03

Whether the Plaintiff was in breach as pleaded in the Counter-Claim

Holding

The Plaintiff was not in breach; no termination or distress notice was ever issued and the Defendant could not claim rent for the period of unlawful dispossession

Reasoning

The court held that rent is only due while enjoyment of the premises persists; upon unlawful eviction under Section 77 of the Land Act the lessee is relieved of rent obligations. The Counter-Claim based on rent for the dispossession period from December 2016 was therefore not awardable.

p. 32
04

Removal of the caveat

Holding

The Plaintiff was justified in lodging the caveat while the registered lease subsisted, but having lost possession he should remove it upon payment of the damages

Reasoning

The court found the caveat was lodged to preserve the registered lease whose period had not expired, so it was justified. However, circumstances changed: the Plaintiff is no longer in possession and is being compensated, so the caveat should be lifted once the Defendant pays the damages awarded.

p. 32
05

Quantum of damages

Holding

General damages awarded as pleaded by the Plaintiff: Kshs. 24,600,000 for derogation from grant, Kshs. 24,600,000 for constructive eviction and Kshs. 12,847,350 for goods detained, totalling Kshs. 62,047,350

Reasoning

The court adopted the Plaintiff's submissions quantifying damages by reference to the rent for the unexpired five-year term of the lease and the value of renovations proved by PW-2, holding that a breach of the law ought to attract a remedy to the violated party.

p. 35

Legal principles established

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  • A lessee unlawfully evicted from leased premises is immediately relieved of all obligations to pay rent under the lease for the period of dispossession
  • A landlord cannot take possession extra-judicially; possession must be obtained through a court order unless the tenant consents
  • Damages in contract are intended to place the claimant in the position he would have been in had the contract been performed

Court orders

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  1. 1.Judgment entered in favour of the Plaintiff against the Defendant in its entirety save for Prayer No. 1 of the Plaint (permanent injunction), with costs
  2. 2.The Defendant's Amended Counter-Claim dated 5th February, 2020 partially dismissed with costs to the Plaintiff
  3. 3.General damages for derogation from grant awarded at Kshs. 24,600,000
  4. 4.Damages for unlawful constructive eviction awarded at Kshs. 24,600,000
  5. 5.Reimbursement of the value of goods detained awarded at Kshs. 12,847,350
  6. 6.Total judgment amount of Kshs. 62,047,350 as at 23rd May, 2023
  7. 7.Prayer 1 of the Plaint (permanent injunction) not awarded as the tenancy agreement has already been terminated
  8. 8.Order that the Plaintiff quit, vacate and hand over forthwith the demised premises to the Defendant, and in default an order of eviction to issue
  9. 9.Order directing the Plaintiff to remove/lift the Caveat on the Defendant's title upon the Defendant effecting payment of the damages, and in default the Land Registrar to remove it at the Plaintiff's cost
  10. 10.Plaintiff awarded costs of the suit and the Amended Counter-Claim with interest at court rates

Authorities

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Legislation

  • Law of Contract Act (Cap. 23)Section 3(3)
  • Land Act, No. 6 of 2012Section 38
  • Land Act, No. 6 of 2012Section 77
  • Land Registration Act, No. 3 of 2012Section 71
  • Land Registration Act, No. 3 of 2012Section 73(1)
  • Land Registration Act, No. 3 of 2012Section 75
  • Evidence Act (Cap. 80)Sections 107 and 109
  • Civil Procedure Act (Cap. 21)Section 27
  • Civil Procedure CodeSections 1A, 3 and 3A
  • Landlord and Tenant (Shops, Hotels & Catering Establishments) Act (Cap. 301)Section 4
  • Civil Procedure Rules 2010Orders 6, 7 and 11
  • Companies Act (Chapter 486 Laws of Kenya)

Cases cited (32)

  • Gusii Mwalimu Investment Co. Limited v Muahimu Hotel Kisii Ltd
    [1996] eKLR

    A landlord cannot obtain possession by illegal distress or extra-judicially; must obtain a court order

  • Teresia Irungu v Jackton Ocharo & 2 others
    [2013] eKLR

    Tenancy can only be terminated through due process; eviction without a court order is illegal

  • Kenya Commercial Bank Limited v Popatial Madhavji & another
    [2019] eKLR

    A lease cannot be terminated mid-term; parties bound for the full lease period

  • Chimanlal Meghji Naya Shah & Another v Oxford University Press (EA) Limited
    [2007] eKLR

    Termination of a lease without a termination clause is a breach of contract attracting damages

  • Hort Limited v Attorney General
    [2016] eKLR

    General damages as pecuniary recompense for an actionable wrong; award of Kshs. 5,000,000

  • Mattarella Limited v Michael Bell & another
    [2018] eKLR

    Taking possession by the law of the jungle is frowned upon and remedied by damages; Kshs. 2,000,000 awarded

  • Kenya Women Microfinance Ltd v Martha Wangari Kamau
    [2021] eKLR

    General damages are not awardable for breach of contract (relied on by Defendant)

  • Kenya Tourist Development Corporation v Sundowner Lodge Limited

    General damages not recoverable for breach of contract (cited within Kenya Women Microfinance)

  • Dharamshi v Karsan
    [1974] EA 41

    General damages not awardable for breach of contract in addition to quantified damages

  • Securicor Courier (K) Ltd v Benson David Onyango & another
    [2008] eKLR

    General damages not awardable for breach of contract

  • Provincial Insurance Co. EA Ltd v Mordechai Mwanga Nandwa
    KSM Civil Appeal No 179 of 1995

    General damages not awardable for breach of contract

  • National Bank of Kenya Ltd v Pipeplastic Samkolit (K) Ltd & another
    [2001] eKLR

    Courts cannot rewrite contracts; parties bound by terms unless coercion, fraud or undue influence pleaded

  • Pius Kimaiyo Langat v Co-operative Bank of Kenya Limited
    [2017] eKLR

    Restatement that courts do not rewrite contracts between parties

  • Jomo Kenyatta University of Agriculture and Technology v Kwanza Estates Limited
    [2022] eKLR

    Adopting the principle that courts do not rewrite contracts

  • Vincent E. Mukoko v Abdirahman Abdinur Harun, Onam Okal Okeyo (Interested Party)
    [2021] eKLR

    Mesne profits and damages for a wrongfully placed caveat (Kshs. 500,000)

  • Robinson v Harman
    (1848) 1 Exch 850

    Damages in contract place the claimant in the position as if the contract had been performed

  • Photo Production Ltd v Securicor Transport Ltd
    (1980) AC 827

    Breach of contract gives rise to a secondary obligation to pay compensation for loss

  • Machakos District Co-operative Union v Philip Nzuki Kiilu
    CA No 112 of 1997

    Supporting Section 3(3) Law of Contract Act requirements for contracts on land

  • Rufale v Umon Manufacturing Co. (Ramsboltom)
    (1918) LR 1 KB 592

    Courts will not imply terms into a contract merely because reasonable

  • Attorney General of Belize et al v Belize Telecom Ltd & Another
    (2009) 1 WLR 1980

    The court does not make or improve contracts for the parties

  • Miller v Minister of Pensions
    (1947) 2 All ER 372

    Standard of proof on a balance of probabilities

  • E.H. Lewis & Son v Morelli
    (1948) 2 All ER 1021

    Tenant estopped from denying landlord's title

  • Kasturi Limited v Nyeri Wholesalers Limited
    (2014) eKLR

    Restating tenant's estoppel from denying landlord's title

  • Caledonia Supermarket Ltd v Kenya National Examinations Council
    [2000] 2 EA 351

    Landlord obliged to issue a proper notice of termination

  • Giella v Cassman Brown
    1973 EA 358

    Locus classicus on prohibitory injunctions

  • Shepard Homes v Sandham
    (1970) 3 WLR 356

    Distinction between prohibitory and mandatory injunctions

  • Andrew Kamau Mucuha v Ripples Limited
    (1993) eKLR

    Mandatory injunctions granted only in special circumstances

  • Locabell International Finances Limited v Agro Export
    (1986) 1 All ER

    Mandatory injunction granted where defendant seeks to steal a match on the plaintiff

  • Jabir Singh Rai v Tarchalans Rai Singh
    (2014) eKLR

    Costs follow the event; successful party ordinarily awarded costs

  • Hussein Janmohamed & Sons v Twentsche Overseas Trading Co. Ltd
    [1967] EA 28

    Costs follow the event; compensating the successful party

  • Stroms v Hutchinson
    [1905] AC 515

    General damages are the direct, natural or probable consequence of the act complained of

  • Coco v A. N. Clark (Engineers) Ltd
    [1969] RPC 41

    Primary task of the court is to construe the contract (cited within Pius Kimaiyo Langat)

Jurisdiction invoked
Environment and Land Court jurisdiction over landlord-tenant/lease disputes (Article 162(2)(b) ELC mandate); cause of action in Mombasa

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, "Wambui v Frann Investment", Case Analysis (2023). Environment and Land Case 207 of 2019. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2023/21781/eng@2023-11-28

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