Brand Strategy & Design (EA) Ltd v Royal Importers & Exporters Ltd & 2 others [2021] KEBPRT 437 (KLR)

Facts

The Tenant filed a motion seeking the refund of Kshs.500,000/- deposits made to the Tribunal. The deposits were made in February 2019 and were allegedly made for rental arrears and security. The Tenant claims the Landlords did not have the right to lease the property and that a fraud was committed.

Issues

1. Whether the Tenant should receive back the amount held by the Tribunal in this case.
2. Whether the Landlords have the right to lease the property and if a fraud was committed.

Reasoning

The Tribunal found that the Tenant and the 2nd Respondent entered into a Heads of terms agreement subject to lease. No evidence of fraud was provided. The Tenant vacated the premises after issuing a notice of termination. The state of the demised premises as at the date of the Tenant’s vacation ought to be availed to the Tribunal through a valuation report.

Outcome

The sum of Kshs.250,000/- held on account of rent arrears shall be paid to the 2nd Respondent/Landlord. The 2nd Respondent shall file a valuation report of the state of repair of the demised premises and/or any evidence of amount of expenses incurred for repairs thereof for purposes of offsetting the same against the security deposit held by the Tribunal. Any balance remaining after offsetting the cost of repairs shall be payable to the Tenant/Applicant.