Companies

Uchumi Sh4.2m rent row threatens shutdown of city store

uchumi

Shoppers at an Uchumi outlet in Nairobi. FILE

Uchumi Supermarket is locked in a legal battle with its landlord who is seeking to evict the retail chain from one of its branches on Ngong Road in Nairobi over Sh4.2 million rent arrears.

The retail chain claims that Kenya Bowling Centres Limited has threatened to seize and auction its goods over the arrears, which Uchumi argues that it has cleared.

Uchumi moved to the High Court in November seeking to block the firm from evicting it after a Magistrate’s Court dismissed its suit, citing lack of jurisdiction over the dispute.

“Second defendant acting on the 1st defendant instruction unlawfully proclaimed the applicant’s goods and proceeded to issue a 14 days notice when the 2nd defendant intends to remove and sell the plaintiff goods by public auction unless the alleged rent arrears of Sh4.2 million are paid forthwith,” said Uchumi in court documents.

The firm listed Kenya Bowling Centres Limited as its landlord and Jogan Dries Services as the first and second defendants respectively.

Uchumi has two branches on Ngong Road—Ngong Hyper and Ngong Adams Arcade—but chief executive Jonathan Ciano declined to identify the affected store.

Uchumi claims it has no rent arrears and asked the court to grant orders restraining the landlord from eviction.

The retail chain initially filed the suit in June at the commercial chief magistrate court, but the case was dismissed on November 15 on grounds that the matter should be settled by the Rent Tribunal.

The dismissal of the suit at the lower court prompted Uchumi to seek redress at the High Court as it filed a separate petition before the Business Premises Rent Tribunal.

The firm in court documents says its initial 12-year lease for the store expired in 2001, but the retailer has continued to occupy the premises.
The rent row erupted in June when Uchumi was slapped with arrears that it claims are non-existent.

Uchumi says it learnt in November that its landlord had not banked rental cheques from October 2012.

This prompted the chain lawyers to engage the landlord and they mutually agreed to raise the monthly rent to Sh625,000 per month backdated to October 2012.

The rental dispute has rocked many firms in Nairobi’s Central Business District. Its rival Tuskys also faced a lease row that forced it to relocate its new store on Tom Mboya Street that it recently acquired from rival Ukwala Supermarkets after it failed to reach a lease agreement with the landlord at its former Daima branch.