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ELCPartially AllowedCase No ELCLA/E203/2025· [2026] KEELC 5532 (KLR)

Grace Njeri Njoroge and Ten Others v The General of The Salvation Army Registered Trustees and Two Others

Environment and Land Court of Kenya
18 September 2026
5,555 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~22 min to read original · ~4 min brief

The bottom line

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Kenya's Environment and Land Court voided a rent increase notice that skipped the mandatory two-month statutory notice, but confirmed tenants must pay the new landlord.

What this practically means

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Executive summary

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The Environment and Land Court at Milimani (Orwa J) allowed in part an appeal against the Business Premises Rent Tribunal's judgment of 12 September 2025 dismissing the Appellants' complaint concerning commercial stalls and offices on LR No. 209/1951, Racecourse/River Road, Nairobi. The Appellants, sub-tenants under a controlled tenancy beneath Funan Construction Company Ltd, argued that on expiry of the head lease on 30 September 2023 they became direct tenants of the 1st Respondent (the Salvation Army Registered Trustees) under section 5 of Cap 301, and that the 2nd and 3rd Respondents (managing agent and new landlord) unlawfully altered tenancy terms and demanded goodwill. The court upheld the tribunal's finding that upon the 1st Respondent executing a fresh lease with the 3rd Respondent, the 3rd Respondent became the Appellants' landlord and the 2nd Respondent its recognised agent. However, the court held that the notice/letter of 1 October 2023 effecting a rent increment on 5 October 2023 was an ordinary letter lacking the mandatory particulars of the prescribed form and far short of the two-month minimum under section 4(2) and 4(4) of Cap 301, and was therefore null and void. The tribunal's dismissal of the reference was set aside, the notice declared void, and the orders for taking of accounts and 60-day stay of distress vacated. Rent deposits are to be computed at the initial monthly rent and released to the 3rd Respondent, to whom the Appellants must pay rent forthwith. Each party bears its own costs.

Key legal issues

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01

Whether the 1st Respondent became the direct landlord of the Appellants on expiry of the head lease

Holding

No; the 3rd Respondent became the landlord upon execution of the new lease with the 1st Respondent, and the 2nd Respondent is its recognised managing agent

Reasoning

Section 5 of Cap 301 deems the person entitled to the reversion to be the landlord of the controlled sub-tenancy. The 1st Respondent executed a new lease with the 3rd Respondent effective 1 October 2023 and introduced it as the new landlord. The tribunal's finding on this issue was upheld, so the appeal failed on this limb.

p. 13
02

Whether the notice/letter dated 1.10.2023 altering tenancy terms complied with section 4 of Cap 301

Holding

It did not; it was an ordinary letter, lacked the mandatory particulars of the prescribed form, and took effect on 5.10.2023, far short of the statutory two months

Reasoning

Section 4(2) requires notice in the prescribed form and section 4(4) requires not less than two months before effect. The notice was an ordinary letter omitting the required particulars (proposed alterations, grounds, and the one-month response requirement) and purported to take effect within days. Authorities hold such notices null and void; the tribunal erred in treating it as valid.

p. 30
03

Whether the tribunal erred in granting the orders of 12.9.2025

Holding

Partially; the dismissal of the reference was set aside, the notice declared void, and the ancillary orders (taking of accounts, 60-day stay of distress) vacated

Reasoning

Because the foundational rent-increment notice was void, the tribunal's orders resting on it could not stand. However, the finding that the 3rd Respondent is landlord was upheld, so the Appellants remain obliged to pay rent to the 3rd Respondent at the initial rate, with liberty to settle any deficit.

p. 31

Legal principles established

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  • A landlord altering terms of a controlled tenancy must strictly comply with section 4 of Cap 301, including the two-month minimum notice period and prescribed-form particulars; non-compliant notices are null and void
  • Upon termination of a head lease, a reversioner entering a new lease becomes landlord of the controlled sub-tenancies under section 5 of Cap 301

Court orders

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  1. 1.The order of the Business Premises Rent Tribunal dated 12.9.2025 dismissing the reference is set aside
  2. 2.The notice dated 1.10.2023 for rent increment is declared null and void for want of compliance with statutory notice under section 4(2) of Cap 301
  3. 3.The orders of the Tribunal directing taking of accounts and 60 days stay of distress for rent are vacated
  4. 4.Rent deposited at the tribunal or court shall be computed at the initial monthly rent payable to the former Head Tenant and released to the 3rd Respondent
  5. 5.Parties are at liberty to settle the deficit or balance between themselves
  6. 6.The Appellants shall pay rent to the 3rd Respondent as their landlord forthwith
  7. 7.Each party to bear own costs of the appeal

Authorities

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Legislation

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) ActSections 4, 5, 7(1)(g), 10, 12(4)
  • Landlord and Tenant (Shops, Hotels and Catering Establishments) (Tribunal) (Forms and Procedure) RegulationsRegulation 4 (Forms A and A1)
  • Land ActSection 23
  • Evidence ActSection 120
  • Civil Procedure ActSection 27
  • Constitution of Kenya (former)Section 77(9)

Cases cited (15)

  • Selle and Another vs. Associated Motorboat Company Ltd & Others
    [1968] EA 123

    First appellate court may re-evaluate facts where trial court misdirected itself

  • Mbogo & Another v Shah
    [1968] EA 93

    Appellate restraint in interfering with exercise of discretion

  • Chelulei & another v Zaya Properties Limited
    [2026] KEHC 7478

    Party in breach of contract cannot seek protection under its terms

  • Kenya Airways Limited v Satwant Singh Flora
    [2013] eKLR

    Party in breach cannot rely on contractual protections

  • Mistry Amar Singh v Serwano Kulubya
    [1963] EA 408

    Sub-tenants' rights flow from the head lease and must be asserted within its framework

  • Manaver N Alibhai T/A Diani Boutique vs South Coast Fitness & Sports Centre Limited
    Civil Appeal No. 203 of 1994

    Mandatory statutory procedure for terminating controlled tenancies, including prescribed-form notice

  • Ann Mwaura & 9 Others V David Wagatua Gitau & 2 Others
    [2010] KEHC 1596 (KLR)

    Prescribed form refers to contents; non-compliant notices null and void

  • Caledonia Supermarket Ltd Vs Kenya National Examinations Council
    [2002] 2 EA 357

    Failure to comply with mandatory notice requirements renders notices null and void

  • Tiwi Beach Hotel Ltd v Julian Ulrike Stamn
    [1990] 2 KAR 189

    Landlord must comply with statutory procedure to terminate or alter protected tenancy

  • Fredrick Mutua Mulinge t/a Kitui Uniform vs Kitui Teachers Housing Cooperative Society Limited
    [2017] KEELC

    Defective notice is a nullity; cannot be cured by subsequent letter

  • Narshidas & Company Limited vs. Nyali Air Conditioning and Refrigeration Services Limited
    Civil Appeal No. 205 of 1995

    Notice not complying with Form A is void and of no legal effect

  • Lall vs. Jeypee Investments Ltd
    Nairobi HCCA No. 120 of 1971 (1972) EA 512

    Cap 301 must be construed strictly; absolute compliance with notice provisions required

  • Saheb v Hassanally

    Refusal to pay rent to a duly appointed agent is a breach

  • Republic v Chairman BPRT ex parte Nyang'aya

    Strict proof required for allegations of unlawful goodwill demands

  • Rai & 3 Others v Rai & 4 Others
    [2014] KESC 31 (KLR)

    Costs follow the event

On appeal from
Business Premises Rent Tribunal, Nairobi
Business Premises Rent Tribunal reference number (not stated)
Jurisdiction invoked
First appellate jurisdiction over the Business Premises 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, "Grace Njeri Njoroge and Ten Others v The General of The Salvation Army Registered Trustees and Two Others", Case Analysis (2026). Case No ELCLA/E203/2025. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2026/5532/eng@2026-09-18

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