Case Study. Ngwana v Tsavo Lifestyle Ltd. When Informal Agreements Meet the Tribunal

Background

In 2022, a dispute between Mr. Ngwana, a rooftop restaurant operator, and his landlord, Tsavo Lifestyle Ltd, reached the Business Premises Rent Tribunal (BPRT). The landlord alleged that the tenant had defaulted on rent arrears dating back to September 2019. The tenant, however, insisted there was no formal rent agreement in place, and that his occupation was based on an arrangement where he provided marketing and promotional services in lieu of rent (Kenya Law, 2022).

Escalation

Tensions worsened when the landlord allegedly cut off electricity to the premises, causing the tenant’s perishable stock to spoil—losses amounting to approximately KSh 72,450 (Kenya Law, 2022). The tenant sought relief, arguing that the landlord’s actions amounted to harassment and unlawful eviction tactics.

Tribunal Intervention

On February 10, 2022, the BPRT granted an interim injunction restraining the landlord from evicting the tenant. The tribunal emphasized the need to maintain the status quo while the matter was fully heard. Later, on March 30, 2022, the tenant filed an amended application to dispute claims of rent arrears and reinforce the argument that his occupation was based on services rendered rather than monetary rent (Kenya Law, 2022).

Why the Case Drew Public Interest

This tribunal case stood out for several reasons:

Harassment tactics: The deliberate disconnection of electricity highlighted the extreme measures some landlords may use to pressure tenants.
Informality vs. legality: The case spotlighted the risks of operating without written agreements, which often lead to conflicting interpretations of obligations.
Tribunal’s protective role: The swift injunction demonstrated how the BPRT can provide immediate relief for tenants facing unlawful eviction.

Lessons Learned

The Ngwana v Tsavo Lifestyle Ltd case is a reminder that informal tenancy arrangements, while common in Kenya, can quickly spiral into conflict. It also underscores the importance of proper documentation and transparent record-keeping. With clear agreements, automated payment records, and structured communication, many such disputes could be prevented before ever reaching the tribunal.

References

Kenya Law. (2022). Ngwana v Tsavo Lifestyle Ltd (Tribunal Case E123 of 2022) [2022] KE BPRT 738 (10 February 2022). Kenya Law Reports.