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ELCPartially AllowedNot stated in the judgment (originally filed in the Commercial and Admiralty Division; plaint dated 9th September 2015; later transferred to the Environment and Land Court)· [2024] KEELC 556 (KLR)

Kungu & another (Suing as the administrations of the Estate of Kungu Kagiri t/a Monte Carlo Club) v English Press Properties Limited & 2 others (Environment & Land Case 110 of 2016) [2024] KEELC 556 (KLR)

Environment and Land Court
8 February 2024
6,066 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~24 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that a landlord who locks out a protected tenant's estate without a court order or proper notice must pay damages — but tenants must act quickly.

What this practically means

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Executive summary

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The Plaintiffs, administrators of the estate of Stephen Kung'u Kagiri (deceased) who had run Monte Carlo Club as a protected tenant of the 1st Defendant since 1994, sued after the 1st and 2nd Defendants levied distress for Kshs.950,000 rent on 4th September 2015, carted away goods, demolished partitions and locked the premises, which were then leased to the 3rd Defendant the same day. The Defendants denied unlawful eviction, asserting lawful distress under a court order, and challenged the Plaintiffs' locus on the ground that the controlled tenancy died with the tenant. The court framed three issues: locus standi, lawfulness of the eviction, and reliefs. It held the Plaintiffs had locus, since distress for rent acknowledged the tenancy subsisted and a controlled tenancy does not terminate on death under section 4(1) of Cap 301. The eviction was found illegal: no rent was owing when goods were proclaimed, no section 4(2) termination notice was served, and there was no eviction order. On reliefs, the mandatory injunction reinstating the Plaintiffs was refused as a third party had taken possession and the Plaintiffs had not diligently pursued reinstatement; mesne profits were refused as the Plaintiffs were not the owners and it would double-compensate; claims for missing goods failed for want of strict proof of special damages; and the eight-year damages claim was rejected for a month-to-month tenancy. Judgment was entered against the 1st Defendant for general damages of Kshs.720,000 (one year's rent), punitive damages of Kshs.500,000, costs, and interest at court rates from the date of judgment.

Key legal issues

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01

Whether the Plaintiffs (administrators of the deceased tenant's estate) had locus standi to sue on the controlled tenancy

Holding

They had locus standi; the distress for rent acknowledged the subsistence of the tenancy, and death of the tenant does not terminate a controlled tenancy.

Reasoning

The court relied on section 4(1) of Cap 301 which provides that a controlled tenancy shall not terminate otherwise than in accordance with the Act, and on the common law position that a tenancy vests in the deceased lessee's personal representatives. Since the business was a going concern forming part of the deceased's estate and the landlord itself levied distress for rent, the landlords could not simultaneously deny the tenancy subsisted while distraining under it.

p. 6
02

Whether the eviction of the Plaintiffs was unlawful

Holding

The attempted eviction was illegal and unlawful: no rent was owed when the goods were proclaimed, no termination notice under section 4(2) of Cap 301 was served, and there was no court order for eviction.

Reasoning

The court found no evidence of service of a termination notice in the prescribed form in accordance with section 4(2) of Cap 301. The proclamation notice was issued before any rent had accrued and goods were carried away four days after proclamation instead of the fourteen days in the notification. DW1 admitted there was no eviction order. Reliance was placed on Caledonia Supermarket and Gusii Mwalimu, which condemned extra-judicial recovery of possession.

p. 7
03

Whether the Plaintiffs were entitled to damages for loss of business despite lack of documentary proof

Holding

Yes; general damages of Kshs.720,000 being one year's rent at the rate the Plaintiffs paid, plus punitive damages of Kshs.500,000 for the unlawful distress and eviction.

Reasoning

The court applied the equitable principle that there is no wrong without a remedy and the authority in Kimatu Mbuvi that quantification difficulties do not defeat a damages claim. Having carried on business since 1994 and paid rent, the business must have been profitable. Since the tenancy was month-to-month under section 57(4) of the Land Act, compensation was pegged at one year's rent as an interim mitigation, with punitive damages for the unlawful distress.

p. 9
04

Whether a mandatory injunction restoring the Plaintiffs to the premises should issue at the final stage

Holding

No; it was too late as the premises had passed to a third party and the Plaintiffs had not diligently pursued reinstatement.

Reasoning

The court distinguished Gusii Mwalimu and Locaball, where mandatory injunctions were granted at interlocutory stage. Interim orders of 14th September 2015 restrained the Plaintiffs from evicting the 3rd Defendant and were repeatedly extended, with the Plaintiffs' consent to maintaining the status quo. The Plaintiffs' own witness confirmed they were no longer in possession. Equity aids the diligent.

p. 10

Legal principles established

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  • A controlled tenancy does not terminate on the death of the tenant; it vests in the tenant's legal personal representatives and may only be terminated in accordance with the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act.
  • Levying distress for rent is an acknowledgement that the tenancy still subsists, conferring locus standi on the tenant's administrators.
  • A landlord may not obtain possession extra-judicially; unless the tenant consents to give up possession, the landlord must obtain an order of a competent court or statutory tribunal.
  • A court may award an estimated amount for loss of business profits where documents were destroyed, rather than dismissing the claim for lack of documentary proof.

Court orders

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  1. 1.Judgment entered for the Plaintiffs as against the 1st Defendant
  2. 2.General damages of Kshs. 720,000 (one year's rent at the rate the Plaintiffs were paying)
  3. 3.Punitive/exemplary damages of Kshs. 500,000
  4. 4.Costs of the suit to the Plaintiffs
  5. 5.Interest on the general and punitive damages at court rates from the date of judgment

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301)Section 2 (definition of controlled tenancy)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301)Section 4(1)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301)Section 4(2)
  • Land Act, 2012Section 57(4)
  • Civil Procedure RulesOrder 21 rule 13

Cases cited (13)

  • WALJEE v ROSE
    (pg28)
  • M/S Gusii Mwalimu Investment Co, Ltd v M/s Mwalimu Hotel Kisii Ltd
    Court of Appeal Civil Appeal No. 160 of 1995
  • Intimate Beauty Care Ltd v Kundan Singh Construction Ltd
    HCCC No. 227 of 2001
  • Peter Mwangi Mbuthia & Another v Samow Edin Osman
    [2014] eKLR
  • Law Society of Kenya v Commissioner of Lands & others
    Nakuru High Court Civil Case No 464 of 2000
  • Edward v Mwakidudu & 3 others
    (Environment & Land Case 25 of 2021) [2023] KEELC 6 (KLR)
  • Alfred Njau and others v City Council of Nairobi
    [1982] KAR 229
  • Jacob Kaliunga M'mwirabua v Warda Said Abud Msalam & another
    [2021] eKLR
  • Caudonia (Caledonia) Supermarket Ltd v Kenya National Examination Council
    [2000] 2 EA 351 / [2017] eKLR
  • Kimatu Mbuvi T/A Kimatu Mbuvi & Bros v Augustine Munyao Kioko
  • Rajan Shah T/A Rajan S. Shah & Partners v Bipin P. Shah
    [2016] eKLR
  • Consolata Anyango Auma v South Nyanza Sugar Company Ltd
    [2015] eKLR
  • LOCABALL INTERNATIONAL FINANCE LTD v AGRO EXPORT AND OTHERS
Jurisdiction invoked
Original civil jurisdiction following transfer of the suit from the High Court, Commercial and Admiralty Division, to the Environment and Land Court

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, "Kungu & another (Suing as the administrations of the Estate of Kungu Kagiri t/a Monte Carlo Club) v English Press Properties Limited & 2 others (Environment & Land Case 110 of 2016) [2024] KEELC 556 (KLR)", Case Analysis (2024). Not stated in the judgment (originally filed in the Commercial and Admiralty Division; plaint dated 9th September 2015; later transferred to the Environment and Land Court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/556/eng@2024-02-08

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