Swaleh Mwangi & Company Advocates v National Social Security Fund [2020] eKLR Case Summary

Court
Business Premises Rent Tribunal at Nairobi
Category
Civil
Judge(s)
Mbichi Mboroki (Chairman)
Judgment Date
July 12, 2019
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the case summary of Swaleh Mwangi & Company Advocates v National Social Security Fund [2020] eKLR, highlighting key legal insights and implications from the judgment.

Case Brief: Swaleh Mwangi & Company Advocates v National Social Security Fund [2020] eKLR

1. Case Information:
- Name of the Case: Swaleh Mwangi & Company Advocates v. National Social Security Fund
- Case Number: Tribunal Case No. 283 of 2013
- Court: Business Premises Rent Tribunal, Nairobi, Kenya
- Date Delivered: 12th July 2019
- Category of Law: Civil
- Judge(s): Mbichi Mboroki (Chairman)
- Country: Kenya

2. Questions Presented:
The central legal issues in this case include:
- Whether the proposed increase in rent and service charges by the landlord is justified.
- What the appropriate rent and service charge should be, based on the valuation reports submitted by both parties.
- The effective date for the new rent and service charge as well as the implications of delayed filings by the landlord.

3. Facts of the Case:
The applicant, Swaleh Mwangi & Company Advocates, is the tenant, while the respondent, National Social Security Fund, is the landlord. The landlord issued a notice on 7th February 2013 to increase the rent to Kshs 50 per square foot per month and the service charge to Kshs 26 per square foot per month, effective from 1st May 2013. The tenant opposed this increase and filed a reference with the Tribunal on 26th April 2013. The landlord submitted a valuation report on 23rd March 2015, while the tenant submitted theirs on 12th March 2015. The Tribunal noted issues regarding the landlord's cooperation in preparing a joint report on the lettable area.

4. Procedural History:
The case progressed through the Tribunal, where both parties submitted their valuation reports. On 11th April 2019, the Tribunal ordered that the tenant's valuation report would be adopted for judgment purposes. The Tribunal's mandate was to evaluate the submitted valuation reports and determine the reference based on the evidence presented.

5. Analysis:
- Rules: The Tribunal considered relevant statutes regarding tenancy and rent control, including the rights of landlords to adjust rent and the obligation to provide justifications for such increases.
- Case Law: The Tribunal referenced previous cases that dealt with rent valuation and comparisons of similar properties to determine fair market rates. The court emphasized the importance of credible comparables in establishing fair rent.
- Application: The Tribunal evaluated both valuation reports and found that the landlord's report, which recommended Kshs 70 per square foot for rent and Kshs 35 for service charges, was more credible. The Tribunal concluded that the tenant's valuation report inadequately considered comparables from Hazina Towers, where the tenant operated. Ultimately, the Tribunal assessed the rent at Kshs 99,833 per month, based on the landlord's notice, effective from 1st January 2015.

6. Conclusion:
The Tribunal ruled that the rent payable by the tenant would be Kshs 99,833 per month, exclusive of VAT, effective from 1st January 2015. The landlord was awarded costs for the reference, and the tenant was ordered to pay arrears within six months, failing which the landlord could levy distress. The decision underscores the Tribunal's commitment to ensuring fair and just rental agreements while allowing landlords to adjust rents in accordance with market conditions.

7. Dissent:
There were no dissenting opinions noted in the judgment. The ruling was delivered by the Chairman, Mbichi Mboroki, with both parties represented in court.

8. Summary:
The Business Premises Rent Tribunal ruled in favor of the landlord, allowing a rent increase to Kshs 99,833 per month, effective from 1st January 2015. The case highlights the importance of credible evidence in rent disputes and affirms landlords' rights to adjust rental terms within reasonable and justifiable limits. The decision reflects the Tribunal's role in balancing the interests of both landlords and tenants in rental agreements.

Document Summary

Below is the summary preview of this document.

  • Swaleh-Mwangi--Company-Advocates-v-National-Social-Security-Fund-[2020]-eKLR-Case-Summary_2295_0.jpg

This is the end of the summary preview.

Related Documents

View all summaries