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ELCDismissedELC Appeal (Mombasa) arising from Business Premises Rent Tribunal Case No. 244 of 2019; memorandum of appeal dated November 6, 2023· [2025] KEELC 822 (KLR)

Nderi v Zubedi & another (Environment and Land Appeal E038 of 2023) [2025] KEELC 822 (KLR)

Environment and Land Court
26 February 2025
4,562 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court confirmed you can appeal a rent tribunal complaint decision, but a head landlord owes no tenancy duties to a subtenant without a direct contract.

What this practically means

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Executive summary

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This was an appeal to the Environment and Land Court at Mombasa against a judgment of the Business Premises Rent Tribunal (Hon. Gakuhi Chege, Deputy Chairman) delivered on 13th October 2023, which dismissed the appellant's complaint dated 13th September 2019 for want of jurisdiction. The 1st respondent, who had leased premises to the 2nd respondent (who sublet to the appellant), raised a preliminary objection contending that the appeal offended section 15(1) of Cap 301 because appeals lie only from determinations on 'references' under section 6, not complaints under section 12(4). The court rejected the objection, holding, in line with Transallied and contrary to Re Hebtulla and Choitram, that a complaint under section 12(4) constitutes a reference for appeal purposes, and that section 16A of the Environment and Land Court Act confers appellate jurisdiction on the court. On the merits, the court held that the tribunal correctly found it lacked jurisdiction: there was no privity of contract or tenancy relationship between the appellant and the 1st respondent, the 2nd respondent was forbidden from subletting, the Kshs.850,000 'goodwill' payment could not create a tenancy, and the appellant was not in possession at the time of the final judgment. Orders made by the tribunal before determining jurisdiction were null and void, so no contempt arose. The court declined to determine compensation claims, leaving those to a trial court. The appeal was dismissed with costs to the appellant; the preliminary objection was rejected with costs to the 1st respondent.

Key legal issues

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01

Whether an appeal lies to the Environment and Land Court against a tribunal decision on a complaint under section 12(4) of Cap 301, as opposed to a reference under section 6

Holding

Yes. The preliminary objection based on section 15(1) was rejected; a party to a complaint is a party to a 'reference' and has a right of appeal, and section 16A of the Environment and Land Court Act confers jurisdiction on the court.

Reasoning

The court considered Re Hebtulla and Choitram, which restricted 'reference' to section 6 references, but held the legal position changed with the Environment and Land Court Act. Relying on Transallied and Gatimu Kinguru, the court adopted a purposive interpretation: the legislature intended section 16A to replace the old restrictive position, and jurisdiction of a superior court cannot be ousted by implication.

p. 6
02

Whether the tribunal erred in finding it lacked jurisdiction over the appellant's complaint

Holding

No. The tribunal correctly found it lacked jurisdiction because there was no tenancy relationship between the appellant and the 1st respondent and the appellant was not in possession of the premises.

Reasoning

The definitions of landlord and tenant in section 2 of the Act were applied; no express tenancy agreement existed between the appellant and the 1st respondent and there was no privity of contract. The 2nd respondent was forbidden from subletting, and any orders made by the tribunal before determining jurisdiction were null and void, so no contempt could arise.

p. 9
03

Whether the 1st respondent's duty to serve a termination notice on the appellant created a tenancy relationship

Holding

Although the 1st respondent ought to have served a termination notice on the appellant under section 5(2), that did not create privity of contract, and the appeal failed on the jurisdiction point.

Reasoning

The court acknowledged counsel's submission that a notice should have been served, and noted the 1st respondent's duty of care in that regard, including in relation to disposal of the appellant's goods. However, that duty did not establish a tenancy relationship, and compensation claims must be pursued before a trial court.

p. 8

Legal principles established

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  • A determination of a complaint referred to the Business Premises Rent Tribunal under section 12(4) of Cap 301 is appealable to the Environment and Land Court under section 15(1) of the Act; the word 'reference' in section 15(1) cannot be restricted only to references under section 6 of the Act.
  • The restrictive approach in Re Hebtulla and Choitram no longer applies following the enactment of the Environment and Land Court Act and section 16A thereof, which must be given a purposive interpretation.
  • Absent privity of contract, no tenancy relationship exists between a head landlord and a subtenant; the doctrine of privity of contract prevents a contract conferring rights or imposing obligations on non-parties.

Court orders

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  1. 1.That the 1st respondent's notice of preliminary objection is without merit and is rejected with costs to be borne by the 1st respondent
  2. 2.That the appellant has failed to establish the appeal on a balance of probabilities and it is hereby dismissed, with costs to be borne by the appellant

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 15(1)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 2 (definitions of 'landlord', 'tenant', 'reference')
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 6
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 4(2), 4(5)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 5(2)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Actsection 12(4), section 12(e)
  • Environment and Land Court Actsection 16A; section 13(2)
  • Judicature Actsection 3(1)
  • Civil Procedure Actsection 27; section 78
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Tribunal Forms and Procedure RegulationsRegulation 5, Form C
  • Contracts (Rights of Third Parties) Act, 1999 (UK); Contract (Rights of Third Parties) Act, 2001 (Singapore)

Cases cited (21)

  • Mukisa Biscuit Manufacturing Co. Ltd versus West End Distributors Ltd
    [1969] EA 696
  • Nyutu Agrovet Limited versus Airtel Networks Limited
    [2015] eKLR
  • RE HEBTULLA PROPERTIES LTD
    (1979) eKLR
  • Choitram versus Mystery Model Hair Saloon
    [1972] EA 52
  • Ex Parte Mayfair Bakeries Limited versus Rent Restriction Tribunal and Kirit R (Kirti) Raval
    Nairobi HCMCC No. 246 of 1981
  • Transallied Limited versus Sakai Trading Limited
    [2016] KEELC 158 (KLR)
  • Gatimu Kinguru Vs. Muya Gathangi
    (1976 - 80) I KLR 317
  • East African Railways Corporation versus Anthony Sefu
    Dar-es-Salaam, (HCCA No. 19 of 1971) (1983) E.A 327
  • Paramount Bank Limited versus First National Bank Limited & 2 others
    [2023] KECA 1424 (KLR)
  • Pritam versus Ratilal & Another
    (1972) E.A 560
  • Price versus Eaton
    (1833) 4b & Ad 433
  • Kenya Women Finance Trust versus Bernard Oyugi Jaoko & 2 others
    [2018] KEHC 4933 (KLR)
  • Savings & Loan (K) Limited versus Kanyenje Karangaita Gakombe & Another
    (2015) eKLR
  • Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd
    [1915] AC 847
  • Agricultural Finance Corporation versus Lendetia Ltd
  • Kenya National Capital Corporation Ltd versus Albert Mario Cordeiro & Another
  • William Muthee Muthami v Bank of Baroda
  • Shanklin Pier versus Detel Products Ltd
    (1951) 2 KB 854
  • Darlington Borough Council versus Wiltshire Northern Ltd
    [1995] 1 WLR 68
  • Commissioner of Inland Revenue versus Muller & Co. Margarine Ltd
    [1901] AC 217; [1900-1903] All ER 413
  • Owners of Motor Vessel Lillian S versus Caltex Kenya Limited
    (1989) KLR 1
On appeal from
Business Premises Rent Tribunal
Business Premises Rent Tribunal Case No. 244 of 2019 (Hon. Gakuhi Chege, Deputy Chairman)
Jurisdiction invoked
Section 15(1) of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301) as read with section 16A of the Environment and Land Court Act, No. 19 of 2011

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, "Nderi v Zubedi & another (Environment and Land Appeal E038 of 2023) [2025] KEELC 822 (KLR)", Case Analysis (2025). ELC Appeal (Mombasa) arising from Business Premises Rent Tribunal Case No. 244 of 2019; memorandum of appeal dated November 6, 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2025/822/eng@2025-02-26

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