Paul Thuku Githige v Marjory Nyakiago Kimani [2021] KEBPRT 142 (KLR)

REPUBLIC OF KENYA

BUSINESS PREMISES RENT TRIBUNAL

VIEW PARK TOWERS 7TH & 8TH FLOOR

TRIBUNAL CASE NO. 7   OF 2021  (NYERI)

PAUL THUKU GITHIGE......................................APPLICANT/TENANT

VERSUS

MARJORY NYAKIAGO KIMANI............. RESPONDENT/LANDLADY

JUDGMENT

1.  By a tenancy notice dated 25th November 2021, the Landlord sought to increase rent in respect of the Tenant’s premises situate on L.R. No. Karatina Town Block 1/275 from Kshs.15,000/- to Kshs.30,800/- per month with effect from 1st February 2021.

2.  The Tenant being opposed to the said notice filed the instant reference on 25th January 2021.

3.  Both parties filed valuation reports which was agreed upon by consent to be the basis of this judgment without the necessity of calling oral evidence.

4.  The Tenant’s report is by Rwingo Valuers and is dated 14th April 2021 which recommends a sum of Kshs.18,300/- in respect of the demised premises as the chargeable rent at current market rate.

5.  The demised premises is located within the Northern part of the Central Business District (CBD) of Karatina Township along Kibaki road and lies approximately 100 metres from Kirigu Primary School.

6.  The comparable market rents used in arriving at the said recommendation are Eight (8) properties to be found on pages 7 and 8 of the valuation report.

7.  On the other hand, the Landlord used D. Ndirangu, Valuation Officer of the Rent Restriction Tribunal, Nairobi who recommends a figure of Kshs.30,800/- as monthly rent based on the Rent Restriction Act, the cost of construction plus commensurate value of the land.

8.  I have looked at the comparables used by the Tenant’s valuer which range between Kshs.28/- per square feet and Kshs.68/- per square feet.  All the properties are within the same locality.  Going by the said report, the average for the 8 properties is Kshs.46. 625 per  Sq. feet.

9.  On the other hand, the Landlord’s report has no comparables and cites the Rent Restriction Act as the basis for arriving at the recommended rent.  The Act is not applicable to Business Premises and I shall not therefore be guided by the said report.

10. The Tenant herein occupies an area of 357sq ft while according to the Landlord’s Valuer, he occupies an area of 359Sq  ft.  I will take the lower one in arriving at the rent payable.

11. Based on the average rent payable within the neighbourhood of the demised and the total area occupied by the tenant, I have arrived at a rent of Kshs.16,645/- per month.

12. Owing to the fact that the Tenant’s report do not indicate when the comparable premises rent were last reviewed, and in view of inflationary trends experienced in the country, I shall use my discretion to fix the rent payable at Kshs.20,000/- in respect of the demised premises.

13. In conclusion therefore, I proceed to assess rent at Kshs.20,000/- which shall apply from 1st February 2021.

14. I order that each party shall meet own cost of the instant proceedings.

It is so ordered.

DATED, SIGNED AND DELIVERED VIRTUALLY THIS 19TH DAY OF NOVEMBER 2021.

HON. GAKUHI CHEGE

VICE CHAIR

BUSINESS PREMISES RENT TRIBUNAL

In the presence of:-

Muchiri for the Tenant