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ELCDismissedNot stated in the judgment (original High Court suit filed July 20, 2007, transferred and given current case number)· [2024] KEELC 10 (KLR)

Mohamed Godana Jarso t/a Dal International Hotel v Odongo (Environment and Land Case Civil Suit 106 of 2017) [2024] KEELC 10 (KLR)

Environment and Land Court
18 January 2024
5,639 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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A Kisumu landlord-tenant dispute shows courts won't compensate tenants for renovations unless the lease clearly says so, and landlords can't distrain for rent never agreed.

What this practically means

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Executive summary

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The Plaintiff, a hotelier, sued the Defendant, registered proprietor of Kisumu Municipality/Block 7/294, claiming compensation for repairs, renovations and alterations he carried out on the suit property under a three-year lease dated 24th April 2005, together with an order to vacate upon full payment. The Plaintiff alleged a verbal agreement that renovation costs would be offset against rent or refunded. The Defendant denied any such agreement, contending the renovations were for the Plaintiff's own business needs, that the Plaintiff used the Defendant's materials, that the agreed rent was Kshs. 150,000/- per month, and that the distress for rent levied on 9th July 2007 was lawful under clause 4(v) of the lease. The court held the lease was poorly drafted with no express rent clause, inferring rent of Kshs. 100,000/- per month from the Kshs. 300,000/- three-month deposit. It found rent was due from 1st July 2005 and unpaid, so distress was permissible without leave of the Business Premises Rent Tribunal, but unlawful to the extent it claimed Kshs. 150,000/- per month from April 1, 2005. On the refund claim, the court found no express or inferable term entitling the Plaintiff to recover renovation costs, held equity could not be invoked to rewrite the contract, and found the renovations were for the Plaintiff's convenience, recoverable through the discounted rent. In the alternative, it would have assessed the renovation cost at Kshs. 2,287,264/- per DW2's bill of quantities, finding some of the Plaintiff's documents falsified. The suit was dismissed with each party bearing its own costs.

Key legal issues

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01

The rent payable under the lease

Holding

The rent payable was Kshs. 100,000/- per month, inferred from the three months' rent deposit of Kshs. 300,000/- and confirmed by the unchallenged court order of October 16, 2008.

Reasoning

The lease was poorly drafted and had no clause expressly providing for rent. The deposit recital of Kshs. 300,000/- for three months implies Kshs. 100,000/- per month. Both parties' submissions showed consensus on this figure, and the order of October 16, 2008 recording the same rent was never challenged.

p. 7
02

Lawfulness of the distress for rent levied on July 9, 2007

Holding

The distress was partly lawful in principle (rent was due and unpaid) but unlawful to the extent it claimed Kshs. 150,000/- per month from April 1, 2005 instead of Kshs. 100,000/- per month from July 1, 2005; no leave of the Business Premises Rent Tribunal was required.

Reasoning

The Plaintiff admitted no rent was paid from April 2005 and no rent deposit was paid, so rent was due and the Defendant could distress without Tribunal leave. However, the Defendant could only recover lawfully due rent: the agreed rate was Kshs. 100,000/- per month from 1st July 2005, not Kshs. 150,000/- per month from April 1, 2005.

p. 7
03

Entitlement to refund/compensation for renovations

Holding

The Plaintiff is not entitled to a refund of the renovation costs; the lease contained no express or inferable term for such recovery.

Reasoning

Clauses 2, 4, 5 and 9 of the lease permitted renovations and alterations but nothing suggests the Defendant would refund the costs. Express provision existed for offsetting utility bills against rent, but nothing for renovation costs. Recovering approximately Kshs. 10,000,000/- from rent of Kshs. 100,000/- over three years (a maximum of Kshs. 3,600,000/-) was improbable; the more probable intent was recovery through discounted rent.

p. 8
04

Quantum of renovation costs (in the alternative)

Holding

Had it been necessary, the court would have held the cost of repairs and renovations at Kshs. 2,287,264/- per DW2's bill of quantities, finding no credible evidence for the claimed Kshs. 10,383,782/- and that some of the Plaintiff's documents were falsified.

Reasoning

The Plaintiff's claim was based on a Quanti-Bill Consult bill of quantities dated March 2006, yet renovations were complete by 22nd August 2005 - a chronological impossibility. DW2, who actually did the works, prepared a bill of quantities of Kshs. 2,287,264/-.

p. 9

Legal principles established

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  • A distress for rent is lawful only to the extent that it seeks to recover rent lawfully due; recovery of a rate not agreed, or of rent from a date when it was not payable, renders the distress unlawful.
  • A tenant is not entitled to a refund or compensation for repairs and renovations absent an express or inferable contractual term entitling him to such recovery.
  • The court cannot rewrite a contract for the parties or invoke equity to alter the parties' bargain.

Court orders

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  1. 1.The Plaintiff's suit is dismissed
  2. 2.Each party shall bear its costs of the suit

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActChapter 301 Laws of Kenya

Cases cited (3)

  • Nassor Mohamed Nahdy v. Abdalla Ahmed Omar
    [2020] eKLR
  • Veronicah Wanjiru v. Samuel Ikumbu & 2 others
    [2014] eKLR
  • Mombasa Tribunal Cases Nos. 72 of 2020 and E057 of 2021 (consolidated)
Jurisdiction invoked
Original civil jurisdiction over a landlord-tenant/lease dispute transferred to the Environment and Land Court (suit on land known as Kisumu Municipality/Block 7/294)

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, "Mohamed Godana Jarso t/a Dal International Hotel v Odongo (Environment and Land Case Civil Suit 106 of 2017) [2024] KEELC 10 (KLR)", Case Analysis (2024). Not stated in the judgment (original High Court suit filed July 20, 2007, transferred and given current case number). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/10/eng@2024-01-18

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