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ELCPartially AllowedNot stated in the judgment as provided· [2024] KEELC 1248 (KLR)

Hassenye t/a Benos General Shop v Okwayo & another (Environment and Land Appeal E050 of 2021) [2024] KEELC 1248 (KLR)

Environment and Land Court
7 March 2024
2,195 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an evicted shop tenant cannot be restored to the premises but can sue for damages, and courts do have jurisdiction over such disputes.

What this practically means

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Executive summary

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The Appellant was a sub-tenant of the 1st Respondent in Shop No. 1 on parcel Eldoret Municipality/Block 6/70, having taken over from the previous sub-tenant with the main tenant's knowledge. After notices to vacate issued in December 2020 and March 2021, he was forcefully evicted on 5.5.2021 and the 2nd Respondent was placed in the shop. He sued on 19.5.2021 seeking damages, lost income, an injunction and restoration, together with a motion for interlocutory relief. On 14.10.2021 the trial magistrate (Hon. E. Kigen) dismissed the application with costs, holding the court lacked jurisdiction since the dispute belonged to the Business Premises Rent Tribunal under section 12 of Cap 301. On appeal, the Environment and Land Court framed two issues: jurisdiction and restoration. Relying on Selle v Associated Motor Boat Co., the court re-evaluated the evidence. Applying Re Hebtulla Properties Ltd and section 12(1)(e) of Cap 301, it held that because the Appellant had already been dispossessed when he filed suit, the Tribunal was divested of jurisdiction and the trial magistrate erred in finding otherwise. However, although the termination notices were defective under section 4 of Cap 301, the Appellant should have filed a reference or objected; having waited until he was ejected, and with a new sub-tenant operating a full shop, restoration would not be efficacious and his remedy lies in damages. The appeal partially succeeded: the jurisdictional finding was set aside and jurisdiction affirmed, restoration was refused, the file was remitted for hearing before a magistrate other than Hon. E. Kigen, and each party was ordered to bear their own costs. Dated, signed and delivered at Eldoret on 7th March 2024 by E. O. Obaga, Judge.

Key legal issues

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01

Whether the trial magistrate had jurisdiction over the application and suit

Holding

The trial magistrate erred; she had jurisdiction because the Appellant had already been dispossessed at the time of filing, divesting the Business Premises Rent Tribunal of jurisdiction

Reasoning

The court re-evaluated the evidence as a first appeal. The Appellant was forcefully evicted on 5.5.2021 before filing suit on 19.5.2021, and the 2nd Respondent had been placed in the premises. Section 12(1)(e) of Cap 301 gives the Tribunal jurisdiction over persons in occupation at the material time; once ejected, no landlord/tenant relationship subsists to ground the Tribunal's jurisdiction, following Re Hebtulla Properties Ltd.

p. 4
02

Whether the prayer for restoration into the demised premises could be granted

Holding

Restoration was declined; the Appellant's remedy lies in damages

Reasoning

Although the notices to vacate were defective under section 4 of Cap 301 (not in prescribed form and giving no reason for termination), the Appellant was obliged to respond by filing a reference or indicating non-compliance. He waited until he was ejected. By then a new sub-tenant was in occupation of an operational shop, so an order of restoration would not be efficacious.

p. 5
03

Standard of review on a first appeal

Holding

The first appellate court must re-evaluate the evidence and reach its own conclusions

Reasoning

Relying on Selle & another v Associated Motor Boat Co. Ltd & others (1968) EA 123, the court reiterated that an appeal to the first appellate court is by way of retrial: it must reconsider and evaluate the evidence itself and draw its own conclusions, while making due allowance for not having seen or heard the witnesses.

p. 4

Legal principles established

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  • The Business Premises Rent Tribunal's jurisdiction under section 12(1)(e) of Cap 301 extends to persons in occupation at the material time, but once a tenant has been ejected there is no landlord/tenant relationship giving the Tribunal power to entertain the matter
  • A landlord must obtain an order for possession; extra-judicial re-entry is impermissible unless the tenant consents to give up possession

Court orders

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  1. 1.The finding of the trial court that it did not have jurisdiction is set aside and a finding that the court had jurisdiction is made in place of the trial court's finding on jurisdiction
  2. 2.The prayer for restoration into the demised premises is declined
  3. 3.The file is remitted back for hearing by a magistrate other than Hon. E. Kigen
  4. 4.Each party to bear their own costs

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act Cap 301Section 12(1)(e)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act Cap 301Section 4
  • Constitution of Kenya, 2010Referenced generally ('After the 2010 Constitution')

Cases cited (4)

  • Re- Hebtulla properties Limited
    (1979) eKLR
  • Gusii Mwalimu Investments Company Limited & 2 others v Mwalimu Hotel kisii Limited
    Civil Appeal No. 160 of 1995
  • Lau v Japee Investments Limited
    (1972) EA 512
  • Selle & another v Associated Motor Boat Co. Ltd & others
    (1968) EA 123
On appeal from
Magistrates' Court (Eldoret)
Not stated
Jurisdiction invoked
First appellate jurisdiction over the magistrates' court; dispute arising 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, "Hassenye t/a Benos General Shop v Okwayo & another (Environment and Land Appeal E050 of 2021) [2024] KEELC 1248 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/1248/eng@2024-03-07

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