Director Kenya African National Union (Kanu) v Elizabeth Nyambura, Moffat Muya & Timothy Bundi [2019] KEBPRT 13 (KLR)

REPUBLIC OF KENYA

BUSINESS PREMISES RENT TRIBUNAL

TRIBUNAL CASE NO. 49, 50 AND 51 OF 2018 (NYERI)

DIRECTOR KENYA AFRICAN NATIONAL UNION (KANU)…………………..LANDLORD

VERSUS

ELIZABETH NYAMBURA……………….…….………………………………………….TENANT

MOFFAT MUYA…………………………………………………………………………….TENANT

TIMOTHY BUNDI………………………………………………………………………….TENANT

RULING

The Landlord/Respondent in the above reference served the Tenant with notices to increase rent as hereunder;

1. Tenant in BPRT 49/2018 (Elizabeth Nyambura) from shs 7,000to shs 18,000/-

2. Tenant in BPRT 50/2018 (Moffat Muya) from shs 10,000 to shs 33,000/-.

3. Tenant in BPRT 51/2018 (Timothy Bundi) from shs 10,000 to shs 33,000/-.

The Landlord’s notices are dated 9th May 2018 and were to take effect on 1st September 2018.  The Tenants did not wish to comply with the notices and filed the reference in the Tribunal under section 6 of Cap 301.

The mandate of the Tribunal now is to assess the open market rent in respect of the suit premises taking into account the valuation reports filed by the parties.

Summary of the Landlord & Valuation Report

The Landlord’s valuation report has been prepared by Probity Valuation Ltd.  The report is dated 9th October 2018.

Situate: The suit premises is at Nanyuki Town Centre.  Suit premises erected on the suit premises is a partly double single story commercial building comprising of shops and hotel space.  Lettable area is at page 6 of the report.

Comparables;

The Landlord’s valuation report has 4 comparables in respect of ground floor premises and 3 comparables in respect of 1st floor premises.

The Landlord’s valuer recommends rate of shs 110 per square feet in respect of ground floor premises and rate of shs 80/- per square feet in respect of Nyama Choma Village Hotel because of the large lettable area.

The recommended rent payable is at page 11 of the report.

Summary of the Tenant’s Valuers Valuation Report

The Tenant’s Valuers report has been prepared by Rwingo Valuers.  The valuation report is dated 11th January 2019.

Situate: The property is situated within the Central Business District (CBD) of Nanyuki Town.  The lettable area in respect of the suit premises is at page 5 of the Tenant’s valuation report.

Comparables:

The Tenant’s valuation report has 3 comparables and recommends the rate of shs 28 per square feet for the shop.

Evaluation of the Reports;

The Tribunal upon consideration of the valuation reports of the parties and taking into account the disparity of the recommendations of the valuations makes the following orders;

1. The above reference shall be heard at Nyeri on 9th December 2019 at Nyeri Law Courts.

2. The valuers of the parties shall attend the Tribunal for examination and cross-examination ie the integrity of their valuation.

3. Costs in the cause.

Rulingdelivered on this 4th day of October 2019 in the presence of a representative of the Landlord Rose Mwangi.  Tenant’s advocate absent.

MBICHI MBOROKI

CHAIRMAN

BUSINESS PREMISES RENT TRIBUNAL