The High Court in Nairobi has issued a groundbreaking ruling that reaffirms tenants’ rights to claim refunds on rent deposits, marking a significant victory for renters across Kenya.
Dr. Michelle Muhanda emerged triumphant in a prolonged legal battle against her former landlord, LP Holdings Ltd., setting a precedent that will reshape landlord-tenant disputes.
Muhanda had resided at Woodlands Grove Villas, an upscale Nairobi estate, for seven years. When she moved out in October 2022, she requested the return of her Kes.230,000 deposit. Instead of receiving the refund, she was handed a bill of Kes.271,857 for alleged repair costs.
Muhanda, confident that she had left the property in good condition, argued that the charges were unjustified. She also claimed that her request for a joint inspection of the premises was ignored by the landlord.
After failing to resolve the issue with LP Holdings Ltd., Muhanda took legal action. She initially filed her case at the Small Claims Court (SCC), seeking a refund of her deposit and punitive damages under the Consumer Protection Act. However, the SCC dismissed her case, citing jurisdictional concerns, prompting her to escalate the matter to the High Court.
In a landmark decision on Tuesday, Justice Helene Namisi overturned the SCC’s dismissal and ruled in Muhanda’s favor. The judge affirmed that the SCC has jurisdiction to handle rent deposit refund cases, stating, “The appellant’s claim was for breach of contract, relating to the rent deposit paid by the appellant to the respondent. 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.”
Victory Sets New Precedent for Tenant Rights in Kenya
This ruling is a major win for tenants, clarifying that rent deposit disputes can be addressed through the SCC and ensuring such cases are resolved within 60 days of filing. It also reinforces tenants’ rights to fair treatment and access to justice.
Joseph Mwai, a Human Rights and Consumer Protection Advocate who represented Muhanda, celebrated the judgment as a turning point for tenant rights in Kenya. He emphasized the importance of transparency and fairness in landlord-tenant relationships, stating, “The judgment underscores the importance of consumer protection, which is a guaranteed right under Article 46 of the Constitution.
“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.”
The ruling not only resolves Muhanda’s case but also sets a powerful precedent, empowering tenants to challenge unfair practices and holding landlords accountable for transparency and fairness.
