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Kenyan supermarket in court over rent dispute
Kenyan supermarket in court over rent dispute

Kenyan supermarket in court over rent dispute

FMCG SUPPLIER NEWS - Jan 16th 2014, 11:35

Uchumi supermarket has moved to court to stop its landlord from auctioning its stock over rent arrears totalling to Sh4.2 million. 

Uchumi in court over Sh4.2 million rent

The supermarket accuses Jogan Dries Services of unlawfully proclaiming its goods on instruction of Kenya Bowling Centre to recover outstanding rent.

The court heard that if not stopped, Jogan Dries will sell the goods through public auction. Uchumi in its suit papers disputes the claim that it has not paid rent.

It says it has never breached any obligations under the tenancy relationship and following the dispute, it filed a case before rent tribunal, which has not been heard because the tribunal has not been sitting since June 2013.

Subsequently, the supermarket filed another case before the chief magistrate's court. However, the landlord said the court did not have jurisdiction to handle the matter and the case was dismissed.

The parties then agreed to have the rent increased to Sh625,000 per month as per Kenya Bowling's proposal and it be backdated to October 2012. Also agreed upon was a new lease for six years.

Uchumi says following the agreement, it issued Kenya Bowling with 13 cheques reflecting the new rent.But Kenya Bowling is said to have instructed Jogan to seize the goods.

Kenya Bowling has opposed the case saying it is misconceived. It filed an objection in court on grounds that there is no new agreement entered into by the parties as claimed by Uchumi.

The case was postponed late last year after the parties said they were negotiating.

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