Mwangi v Mutura [2025] KEBPRT 288 (KLR)

Mwangi v Mutura (Tribunal Case E1386 of 2024) [2025] KEBPRT 288 (KLR) (20 May 2025) (Ruling)

Neutral citation: [2025] KEBPRT 288 (KLR)

Republic of Kenya

In the Business Premises Rent Tribunal

Tribunal Case E1386 of 2024

CN Mugambi, Chair

May 20, 2025

Between

Peter Mwangi

Claimant

and

Joseph Ngugi Mutura

Respondent

Ruling

1. The Respondent’s notice of Preliminary Objection dated 6. 03. 2025 is brought on the grounds;-“That the Honourable Tribunal lacks jurisdiction to hear and/or determine the claim herein.”

2. The Tenant referred to as the Claimant in these proceedings has admitted to terminating the tenancy and vacating the suit premises in his affidavit sworn on 16. 04. 2025. At paragraph 13 of the said affidavit, it is deponed as follows;-“That due to these frustrations, I opted to terminate the tenancy and vacate the premises in a lawful manner.”

3. The Tenant in his Reference to the Tribunal dated 16. 12. 2024 has prayed for the following orders;-a.A declaration that the Respondent’s failure to compensate the Claimant for improvements amounting to Kshs 1,300,000/= constitute unjust enrichment.b.An order directing the Respondent to refund the Claimant the security deposit and December rent.c.An order directing the Respondent to compensate the Claimant for the cost of improvements made to the premises amounting to Kshs 1,300,000/=.

4. The issue to be determined in this Preliminary Objection is whether, in instances of termination of tenancy, the Tribunal has jurisdiction to determine a claim of the nature presented by the Tenant in his Reference.

5. The powers of the Tribunal are provided for under Section 12 of Cap 301. Section 12(1) of Cap 301 in this regard provides as follows;-“A Tribunal shall in relation to its area of Jurisdiction have power to do all things which it is required or empowered to do by or under this Act and shall have such other powers as may be necessary for the performance of its duties under this Act.”Section 12(4) of Cap 31 further provides as follows;-“In addition to any other powers specifically conferred on it by or under this Act, a Tribunal may investigate any complaint relating to a controlled tenancy made to it by the Landlord or the Tenant and may make such order thereof as it deems fit.”Under The provisions of Section 12(1)(l), the Tribunal has powers,“To award compensation for any loss incurred by a Tenant on termination of a controlled tenancy in respect of goodwill and improvements carried out by the Tenant with the Landlord’s consent.”

6. The Tenant’s claim in this matter is basically for compensation on improvements made on the suit premises. It is clear that this claim is being made after the termination of the tenancy.

7. There is no dispute that a Landlord-Tenant relationship existed between the parties herein and that the same has been terminated and the Tenant has vacated the suit premises.

8. A clear reading of Section 12(1)(l) of Cap 301 clearly shows that the Tribunal has residual power to determine any matters brought to it under the said Section where the matters touch on goodwill and compensation for improvements done upon the suit premises with the consent of the Landlord even where tenancies have been terminated. I think this is an exception to the general rule, and one backed by statutory provisions that where there no longer exists a Landlord-Tenant relationship, the Tribunal lacks jurisdiction.

9. The Tenant’s claim is therefore properly before the Tribunal and consequently, I find no merits in the Respondent’s notice of Preliminary objection dated March 6, 2025 and the same is dismissed with costs to the Tenant.

DATED, SIGNED AND DELIVERED VIRTUALLY AT NAIROBI THIS 20TH DAY OF MAY 2025. HON. CYPRIAN MUGAMBICHAIRPERSONBUSINESS PREMISES RENT TRIBUNALDelivered in the presence of Ms. Wahito for the Tenant and in the absence of the Landlord and CounselCourt: The Reference will proceed for hearing on 22. 7.2025. Hearing Notice to issue