Kenya Business Premises Rent Tribunal ruled on Thursday in favour of Fairways Hospitality Kisumu, declaring a termination notice issued by the Lake Basin Development Authority unlawful.
The decision secures the tenant’s continued occupation and follows reported incidents of disruption by suspected goons, as the tribunal orders accountability, restraint, and rent deposit pending full determination of the dispute.
In a ruling delivered on April 2, 2026, Patricia May dismissed attempts by the landlord to strike out the case, affirming that the tribunal has the legal mandate to hear and determine the dispute.
“THAT this Tribunal has jurisdiction to hear and determine the Tenant's Reference and all applications arising from it,” the ruling stated.
The tribunal further declared a termination notice issued on February 12, 2026, invalid, citing non-compliance with statutory requirements.
“It does not comply with Section 4(2) of Cap. 301 and the prescribed Form A requirements. Any purported eviction flowing from that notice is of no legal effect,” the order read.
The decision means Fairways Hospitality, associated with businessman Irungu Nyakera, will remain in occupation of the premises.
“THAT the Tenant shall remain in peaceful and undisturbed possession of the suit premises at Land Reference Number 15239, Kisumu,” the tribunal ordered.
The case centres on a commercial tenancy dispute, with the landlord alleging rent arrears, while the tenant challenged the legality of enforcement actions taken earlier in the year.
The tribunal directed the landlord to provide a full and sworn account of goods seized during a distress for rent exercise conducted in February.
“The account must specify what goods were taken, what was sold, the price obtained for each item and the balance remaining,” the ruling stated.
It added that any unsold or improperly seized goods must be returned within 14 days, alongside any surplus funds after lawful deductions.
The tribunal also issued strict restraining orders against the landlord and its agents, barring interference with the tenant’s occupation or operations.
“Removing, carting away, or disposing of any goods belonging to the Tenant” and stationing unauthorized personnel at the premises were expressly prohibited.
The ruling comes after heightened tensions surrounding the property, including reported incidents where suspected goons stormed the hotel and disrupted operations.
The incident, which drew national attention, saw property vandalised and raised concerns about the use of force in commercial disputes.
In his response following the ruling, Nyakera referenced the disturbances, noting that the tribunal “expressed concern over the reported incidents of goon activity and emphasized that such conduct has no place in a lawful society.”
The tribunal stopped short of directly adjudicating on the incident but reinforced the need for lawful processes in resolving disputes.
At the same time, the tribunal directed the tenant to deposit Sh8,844,428 in admitted rent arrears into a joint interest-earning account within 30 days.
“This deposit is made without prejudice to the Tenant's claims for damages and to any dispute as to the true amount of arrears,” the ruling noted.
Both parties were also ordered to conduct a joint inventory of all goods remaining under the landlord’s control within seven days, with any identified items to be returned promptly.
Security agencies were brought into the enforcement framework, with the Officer Commanding Station at Obunga Police Station and the Kisumu County Commander directed to ensure compliance and maintain order.
“Any further breach of the peace at the premises shall be promptly reported to this Tribunal,” the order stated.
The tribunal dismissed additional applications by the landlord, including claims that the case was sub judice or an abuse of process.
“THAT The Landlord's prayer is dismissed. The Reference shall proceed to substantive hearing,” the ruling read.
The matter is scheduled for mention on April 22, 2026 for a pre-trial conference, with both parties required to file complete trial documents ahead of the hearing.
In a statement, Nyakera welcomed the ruling, saying it “confirmed that the Tribunal has jurisdiction and declared the termination notice issued by LBDA unlawful, null and void,” adding that “the Fairways tenancy remains valid.”
