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ELCOtherNot stated in the provided judgment extract· [2024] KEELC 3288 (KLR)

Mungai & another v Allied Group for Business Investment Limited & 3 others (Environment & Land Case 981 of 2015) [2024] KEELC 3288 (KLR)

Environment and Land Court
19 March 2024
OAO. A. Angote
624 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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When parties can't agree on a court-appointed rent collector in Kenya, the firm with the strongest professional indemnity cover, valid licences, and longest track record wins.

What this practically means

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Executive summary

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By a ruling and orders of 18th January 2024, the court restrained the 2nd Plaintiff from collecting rent from tenants on the suit properties LR No. 36/III/13 and 36/III/96 and directed that rent be collected by a reputable registered real estate agent agreed by the parties, with deposits into court pending hearing of the suit. When the matter was mentioned on 7th March 2024, the parties had not agreed on a single agent. Counsel for the Plaintiff proposed Tadaima Valuers Limited; counsel for the 1st Defendant, supported by the 3rd and 4th Defendants, proposed Rubyland Limited; and counsel for the 2nd Plaintiff proposed Amazon Valuers Limited. The court perused the three profiles. Tadaima Valuers Limited had a professional indemnity of Kshs 20 million which appeared to have expired on 5th July 2023. Rubyland Limited, incorporated in 2010, offered 5% of gross collections exclusive of VAT, had Kshs 100 million indemnity, current tax compliance and practicing certificates. Amazon Valuers Limited also charged 5% of gross rent exclusive of VAT, had Kshs 200,000,000 professional indemnity, registration dated 6th July 2010, current practicing certificates from the Estate Agents Registration Board and current tax compliance. Comparing the firms, the court found Amazon Valuers Limited best suited, having the highest indemnity cover and the longest existence. It appointed Amazon Valuers Limited to collect rent from the suit properties with effect from 1st February 2024 until further orders, to supply monthly summaries of rent collected less fees by the 10th of each month, and ordered each party to bear its own costs.

Key legal issues

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01

Selection of a real estate agent to collect rent pending hearing and determination of the suit

Holding

Amazon Valuers Limited was appointed as the collecting agent, with monthly accounting to the parties

Reasoning

Following the court's order of 18th January 2024, the parties failed to agree on a single agent and each proposed a firm. The court compared the three profiles on professional indemnity cover, tax compliance certificates, registration and practicing certificates of directors, and duration of existence. Amazon Valuers Limited had the highest indemnity (Kshs 200,000,000), current tax compliance and registration, and had existed the longest since 2010, making it best suited.

p. 2

Legal principles established

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  • In appointing a court-supervised rent collection agent, the court assesses professional indemnity cover, tax compliance, registration and length of existence of the candidate firms

Court orders

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  1. 1.Amazon Valuers Limited to collect rent from the suit property, LR No. 36/111/13 and LR No. 36/111/96 with effect from 1st February, 2024 until further orders of this court
  2. 2.Amazon Valuers Limited to supply to all the parties herein a summary of all the rent collected less its fees on or before the 10th day of every month
  3. 3.Each party to bear his/its own costs
Jurisdiction invoked
Original jurisdiction; interim injunctive orders previously issued by the court in the pending suit (Ruling and Orders of 18th January 2024)

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, "Mungai & another v Allied Group for Business Investment Limited & 3 others (Environment & Land Case 981 of 2015) [2024] KEELC 3288 (KLR)", Case Analysis (2024). Not stated in the provided judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/3288/eng@2024-03-19

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