Midlands Zero & Thirty Three Hotel Llp v Moriaso Ole Kindi [2022] KEBPRT 124 (KLR)

REPUBLIC OF KENYA

IN THE BUSINESS PREMISES RENT TRIBUNAL

TRIBUNAL CASE NO. 75 OF 2020 (NAKURU)

MIDLANDS ZERO

THIRTY THREE HOTEL LLP………….……………………………TENANT

AND

MORIASO OLE KINDI……………..…………….………………LANDLORD

RULING

1. The Tenant herein filed a reference dated 21st May 2020 stating there was an agreement to charge rent at Kshs 100,000/- and the Landlord has since increased the same to Kshs 360,000/- and is threatening to send auctioneers.  The said review downwards was due to covid 19 pandemic.

2. Interim reliefs orders were obtained on 21st May 2020 and the same are in force today being Landlord to interfere and payment of Kshs 100,000/- as rent per month

3. I have had the liberty to look at all the pleadings filed and in particular the fixed term lease of 12 years which the Landlord argues ousts my jurisdiction dated 3rd December 2018.

4. In particular, I have looked at clause No 2(i)(j) which states, in event of termination of this lease before the expiry of the term hereby created a sum of (Kshs 5,000,000) being goodwill will be paid to the lessee and such general and special damages for breach of contract.

5. My interpretation of the clause above is that the lease contemplates early termination and as such brings it under the jurisdiction of this Tribunal as it is not a fixed term lease.  I therefore find I have jurisdiction to deal with this dispute.

6. As such, I order as follows;

a.Reference dated 21st May 2020 be fixed for hearing within 90 days.

b.Rent be reviewed upwards since effects of covid 19 have reduced to Kshs 180,000/- per month without prejudice to the lease terms pending the hearing of the reference.

c.All other status quo except for 2 above be maintained.

HON A. MUMA

VICE CHAIR

BUSINESS PREMISES RENT TRIBUNAL

Ruling dated, signed and delivered virtually by Hon A. Muma this 4thday ofJanuary 2022 in the presence of Ms Kamau for theTenant and in the absence of the Landlord.

HON A. MUMA

VICE CHAIR

BUSINESS PREMISES RENT TRIBUNAL