A recent ruling by the High Court in Nairobi has brought significant relief to tenants, with the court’s decision to uphold a tenant’s right to claim a refund of her rent deposit.

Dr. Michelle Muhanda, after a prolonged dispute with her former landlord, LP Holdings Ltd., has won a major legal victory that is set to reshape how such cases are handled in the future.

Muhanda had lived at Woodlands Grove Villas, a high-end Nairobi estate, for seven years.

Upon her departure in October 2022, she requested the return of her Sh230,000 deposit. However, instead of receiving the expected refund, she was surprised to be handed a bill of Sh271,857, allegedly for repair costs.

Muhanda, confident that the property was in good condition when she vacated, argued that the bill was unjustified, and that her request for a joint inspection of the premises was ignored.

Read More

  1. Jambojet suspends Nairobi-Goma flights after M23 rebels claim to seize DRC city
  2. Starlink unveils Nairobi PoP to reduce latency for its users across East Africa
  3. Nairobi County clamps down on loud matatu touts, noisy businesses in CBD

Her attempts to resolve the issue with the development manager, LP Holdings Ltd., were unsuccessful, prompting her to take legal action.

Muhanda first filed a case at the Small Claims Court (SCC), seeking not only the refund of her deposit but also punitive damages under the Consumer Protection Act. When the SCC dismissed her case due to jurisdictional concerns, she turned to the High Court for a resolution.

In a landmark decision on Tuesday, Justice Helene Namisi ruled in favour of Muhanda, overturning the SCC’s dismissal. The judge affirmed that the SCC had jurisdiction to hear cases regarding rent deposit refunds, stating,

"The appellant's claim was for breach of contract, relating to the rent deposit paid by the appellant to the respondent," the Namisi stated.

"In my view, the appellant's claim falls squarely within the provisions of Section 12 (1) (b) of the Act, being a contract for money held and received. It is, therefore, the finding of this court that the trial court has jurisdiction.”

This decision is a victory not only for Muhanda but for all tenants in Kenya, as it clarifies that rent deposit claims can be heard in the SCC.

It also ensures that such claims will be resolved promptly, with cases to be concluded within 60 days of filing.

LP Holdings Ltd. had argued that the case was outside the SCC’s financial jurisdiction, but the High Court disagreed, reinforcing tenants' rights to a fair hearing.

Joseph Mwai, a Human Rights and Consumer Protection Advocate who represented Muhanda, celebrated the ruling as a turning point for tenant rights.

He stressed the importance of transparency and fairness in dealings between landlords and tenants.

“The judgment underscores the importance of consumer protection, which is a guaranteed right under Article 46 of the Constitution,” Mwai said.

“Article 46 ensures consumers have the right to fair treatment, including the right to goods and services of reasonable quality, the right to information about products and services, the right to have their economic rights protected, and compensation for loss or injury arising from defects in goods and services.”

With this groundbreaking ruling, tenants now have a clear path to seek justice when landlords withhold deposits, ensuring that such disputes are handled swiftly and fairly.

The decision marks a turning point in the battle for consumer rights and the protection of tenants in Kenya.