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ELCPartially Allowed· [2024] KEELC 5124 (KLR)

JANE MURINGI WANGUI & another v HOMEPLUS REALTORS LIMITED & another

High Court of Kenya
4 July 2024
5,350 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's High Court overturned a tribunal eviction, ruling the landlord won unfairly because the tenants' earlier challenge was never heard before possession was ordered.

What this practically means

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Executive summary

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This is a first appeal to the High Court from a ruling of the Business Premises and Rent Tribunal (Vice-Chairman Andrew Muma) dated 9/06/2023, which allowed the landlord's application of 17/03/2023 and ordered immediate vacant possession of Shop No 3 on LR No 209/2632 and 4355 Garden Chambers, Nairobi, on grounds of rent default. The tenants appealed on 21 condensed grounds. The court, applying the settled duty of a first appellate court to re-evaluate the evidence, found that the Tribunal acknowledged the tenants' reference of 31/08/2022 opposing the termination notice but heard instead the landlord's later reference of 17/03/2023, denying the tenants a fair hearing contrary to Article 50(1). The court further held that the Tribunal erred in finding the reference contravened Section 4(5) of Cap 301: the effective date of the notice fell beyond one month, the reference was filed before the effective date, and Section 6(1) permits a reference notwithstanding non-compliance, so the notice was of no effect pending determination of the reference. The Tribunal also erred in granting vacant possession based on abandonment, since an eviction letter of 12/10/2023 proved the appellants remained in possession, and in upholding the notice without proof of rent arrears, the landlord having not refuted evidence that the 2nd appellant paid the arrears and took over the tenancy. Two grounds - unauthorized signatory of the notice and the unilateral site inspection - were declined as new issues not canvassed before the Tribunal. The appeal succeeded; the Tribunal's ruling and consequential orders were set aside, the landlord's reference of 17/03/2023 was dismissed, the tenants' reference of 31/08/2022 was remitted to the Tribunal for hearing, and the appellants were awarded costs.

Key legal issues

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01

Right to a fair hearing before the Tribunal

Holding

The Tribunal heard and determined the landlord's reference filed six months later without hearing the appellants' earlier reference, denying the appellants a fair hearing under Article 50(1)

Reasoning

The court found as a fact that the Tribunal acknowledged the tenants' reference dated 31/08/2022 opposing the termination notice but did not hear or determine it. Instead it heard the landlord's reference of 17/03/2023 and granted vacant possession at what was effectively an interlocutory stage. Determining the validity of the notice without hearing the opposing reference breached Article 50(1) and the rules of natural justice.

p. 5
02

Compliance with Section 4(5) of Cap 301

Holding

The Tribunal erred in finding the reference contravened Section 4(5); the effective date in the notice extended beyond one month and Section 6(1) permits a reference notwithstanding non-compliance

Reasoning

The notice was issued on 21/06/2022 to take effect on 1/09/2022 and the reference was filed on 31/08/2022, before the effective date. The Vice-Chairman failed to observe that the effective date had been substituted beyond the one-month period. Further, Section 6(1) empowers the Tribunal to permit a reference despite non-compliance with section 4(5), and no objection was raised by the respondents.

p. 6
03

Raising a new issue on appeal (unauthorized signatory of the notice)

Holding

The ground that the notice was issued by an unauthorized person could not be entertained as it was not raised before the Tribunal

Reasoning

The issue of the Managing Director signing the notice was never raised before or during the hearing, no notice of preliminary objection was filed, and the Tribunal's judgment did not address it. The court, guided by precedent restricting appellate courts to issues canvassed below, declined to consider the ground.

p. 7
04

Unilateral site inspection

Holding

The ground was not canvassed before the Tribunal and could not be raised on appeal; the tenant also abandoned the issue by failing to file comments within the ordered timeline

Reasoning

The Tribunal ordered the site visit and gave parties an opportunity to comment on the report by 2/06/2023. The tenants filed comments late on 6/06/2023 and adduced no evidence of bias. Having failed to canvass the issue at first instance, the appellants could not raise it on appeal.

p. 8
05

Vacant possession and abandonment

Holding

The Tribunal erred in granting vacant possession on the basis of abandonment, since the eviction letter of 12/10/2023 showed the appellants were still in possession

Reasoning

The appeal was filed on 4/07/2023 and the eviction letter issued on 12/10/2023; an eviction letter could not issue to non-tenants. This demonstrated continued possession and an existing landlord-tenant relationship, contradicting the finding of abandonment on which vacant possession was granted.

p. 8
06

Proof of rent arrears

Holding

The Tribunal erred in upholding the termination notice without proof of rent arrears, as the landlord did not refute evidence that the 2nd appellant paid the arrears and took over the tenancy

Reasoning

Although the landlord had obtained distress-for-rent orders in Magistrate's Case No E1892 of 2021, there was no evidence those orders were still subsisting, and the landlord did not deny receiving rent from the 2nd appellant who took over the tenancy. The finding that arrears were owing was therefore unsupported.

p. 9

Legal principles established

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  • A first appeal is on both facts and law; the first appellate court must re-examine and re-evaluate the evidence and draw its own conclusions
  • A party may not raise a new issue on appeal that was not canvassed before the trial court
  • Under Section 6(1) of Cap 301, a tenancy notice is of no effect pending determination of a reference, and a Tribunal may permit a reference notwithstanding non-compliance with section 4(5)
  • A tenant's reference filed before the effective date of a termination notice suspends the notice until determination
  • Costs follow the event

Court orders

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  1. 1.The Ruling/Judgment of Honorable Andrew Muma-Vice-Chairman-Business Premises and Rent Tribunal dated 9/06/2023 and all consequential orders be set aside and the respondents' reference dated 17/03/2023 be dismissed
  2. 2.The appellants' reference dated 31/08/2022 to be heard by the Business Premises Rent Tribunal
  3. 3.Appellants are granted costs of the Appeal

Authorities

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Legislation

  • Constitution of KenyaArticle 50(1)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301)Sections 4(1), 4(2), 4(4), 4(5), 6(1), 10
  • Landlord and Tenant (Shops, Hotels, and Catering Establishments) (Tribunal) (Forms and Procedure) Regulations 1966Regulation 4(1) (Form A)
  • Civil Procedure ActSection 27

Cases cited (9)

  • Selle & another v Associated Motor Boat Company Limited & others
    [1968] EA 123
  • Williamson Diamonds Limited v Brown
    [1970] EA 1
  • Kenya Trypanosomiasis Research Institute v Anthony Kabimba Gusinjilu
    [2019] eKLR, Nairobi Civil Appeal No 190 of 2015
  • Samuel Kipkurgat Soi v John Kipkoech Soi
    [2019] eKLR, Eldoret ELC Case No 354 of 2016
  • Real Consult Agencies Ltd v Gerald Wachira Nguthi
    [2016] eKLR, Nyeri ELCA No 24 of 2015
  • Republic v Tribunal of Inquiry to Investigate the Conduct of Tom Mbaluto & others ex-parte Tom Mbaluto
    [2018] eKLR
  • Frera Engineering Company Limited v Morris Mureithi Mutembei
    (2020) eKLR
  • George Owen Nandy v Ruth Watiri Kibe
    CA No 39 of 2015
  • Openda v Ahn
    [1983] KLR 165
On appeal from
Business Premises and Rent Tribunal
BPRT E295/2023 (and tenants' reference BPRT E778/2022)
Jurisdiction invoked
First appeal from the Business Premises and Rent Tribunal 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, "JANE MURINGI WANGUI & another v HOMEPLUS REALTORS LIMITED & another", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/5124/eng@2024-07-04

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