Naivas Supermarket Seeks to be Exempted from KSh 52 Million Rent Arrears

Naivas Limited, one of the top retailers in the market is seeking exemption from paying rent to its former landlord in Ngong town. The rent amounts to Ksh 52.3 million.

Screengrab of a copy of the ruling [courtesy of Kenya Law]

The landlord, Premier Home & Properties Limited says that Naivas has to pay the rent since they were in agreement on a 10-year fixed term with no termination clause from  1^st August 2012 to July 2022.

The company, represented by Jane Maina, said that Naivas terminated the lease prematurely without engaging the property firm.

However, the retailer, Naivas, says they had to close down the shop after the government blocked an access path to the mall following an ongoing construction of the Kiserian-Ngong Town Road in October 2019. The landlord, therefore, is to carry the blame for constructing the building close to a road with no buffer zone.

Represented by Evelyne Njeri, Naivas claims that it has lost its customers since they cannot access the business premises. The unresolved issue, therefore, is whether to terminate the lease or pay rent up to the expiry time.

Sitting in the High Court of Kajiado, Judge Chacha Mwita on the 23^rd of July, referred the matter to arbitration. He said that the suit was filed in violation of a clause in the lease agreement that required a dispute between the parties is to be referred to arbitration. They are therefore to appoint an arbitrator within 30 days failure to which the president of the Law Society of Kenya should appoint one.

-Edited by Emomeri Maryanne