Rent increased to KSh600,000 plus KSh15M goodwill: Nairobi’s Nanak House tenants cry foul

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Rent increased to KSh600,000 plus KSh15M goodwill: Nairobi’s Nanak House tenants cry foul

A storm is brewing at Nanak House in Nairobi, located at the junction of Banda Street and Kimathi Street.

Trouble started when the building, previously owned by KCB Pensioners Fund, was recently sold to a new management.

Immediately after the change of management, then new landlord initiated a hefty increase in rent.

Under the previous management, tenants were paying a monthly rent ranging from KSh144,000 to KSh198,000, depending on the size of the space rented.

KSh600,000 rent increment

However, the new landlord introduced a blanket monthly rent of KSh600,000 to all the tenants. As if this was not enough, the new landlord also introduced a KSh15 million goodwill fee on top of the rent, much to their dismay.

The tenants decided to move to court. In a matter that came up before the Justice Cyprian Mugambi Business Premises Rent Tribunal (BPRT) on 11th December, 2024, it was determined that the new landlord shall not increase rent arbitrarily.

The tribunal also agreed that the tenants will continue paying rent at the current rates, and that the landlord and his/her agents will not harass the tenants, or interfere with the tenants enjoyment of the suit premises.

Tribunal orders, counter-orders

But this ruling by Justice Mugambi-led tribunal would only open a can of worms and a protracted litigation. The new owner of the building filed a case at another BPRT led by Justice Mike Makori.

Justice Makori, on 14th March 2025, would partially agree with the tenants, scrapping the KSh15 million goodwill fee, but upholding the landlords proposed rent increment to KSh600,000. While making his ruling, Justice Makori noted that the increment in rent was justified by “prevailing market rates”.

“…That failure to comply, the Landlord/Applicant is at liberty to terminate the Tenancy and take actual occupation of the demised property…That the OCS Central Police Station to ensure compliance with the orders herein,” the ruling, seen by TV47 Digital, reads in part.

In an interview with TV47 Digital on Wednesday, March 19 evening, the tenants’ lawyer, Angwenyi, said that decision by the landlord to get new orders from the same court is in itself “illegal” since the matter has already been determined, unless the landlord moves to a higher court.

“The landlord has already started the process of evicting the tenants from the premises illegally. My take is that they are not given time to pay the 600,000 rent. Mark you, we have orders from court that dictate that status quo must be retained,” Lawyer Angwenyi said, adding that the tenants have an order from High Court for status quo to remain.

The tenants are now accusing the landlord of employing Machiavellian tactics to evict them from Nanak House. On Tuesday, March 18, the tenants claim that the landlord brought in goons who did not allow them to open their shops.

On Wednesday, March 19 morning, the tenants woke up to concrete blocks dumped at the entrance of the building, blocking the way.

The tenants, on Wednesday, March 19, 2025 morning, were dismayed when they were greeted with concrete blocks dumped at the entrance of Nanak House.

The aggrieved businesspeople say some of them have been tenants at the Nanak House for over 20 years, lamenting that they don’t deserve such treatment.

While citing security concerns, the tenants want the landlord to obey court orders.

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