The High Court has issued temporary orders restraining Turkish clothing retailer LC Waikiki Retail Ke Ltd from terminating a sublease agreement between itself and Nova Holdings Ltd before the stipulated period has lapsed.
Justice Wendy Micheni, sitting in Mombasa, also restrained the multinational clothing retailer from vacating the leased premises on the first floor of Likoni Mall in Mombasa, which belongs to Nova Holdings Ltd.
The orders were issued from October 2 to October 15, 2025, when an application by Nova Holdings for confirmation of temporary orders pending hearing and determination of the application is expected to be heard inter partes.
In its application, Nova Holdings, which is associated with businessman Ashok Doshi, claims that LC Waikiki has commenced the process of moving from Likoni Mall, and if allowed to vacate the premises, the substratum of the case will be spent.
Through lawyer Willis Oluga, Nova Holdings also argues that LC Waikiki has begun its exit from the premises and is currently carting away its goods and items.
“The plaintiff (Nova Holdings Ltd) is apprehensive that if the defendant carts away all its goods and items, there will be nothing left for it (plaintiff) to auction in recovery of any amount that this court may award, thereby defeating the plaintiff's claim,” the application states in part.
In the main case, Nova Holdings claims Sh40.4 million on account of rent and value-added tax (VAT), and Sh5.4 million in respect of service charge and VAT. The plaintiff is also seeking a declaration that the defendant is in breach of the sublease agreement dated January 24, 2022, and registered on April 22, 2022, between the two parties.
Nova Holdings is also seeking a permanent injunction restraining LC Waikiki from prematurely terminating the sublease agreement between them before the arrival of the period permissible for ending it.
Nova Holdings argues that on or January 24, 2022, it entered into a sub-lease agreement with the defendant pursuant to which it leased out shops together with adjoining passage on the first floor of Likoni Mall for 15 years effective June 3, 2022.
The plaintiff also argues that under the sub-lease, LC Waikiki could only terminate it (the sub-lease) after the expiry of 66 months (five years and six months), thus the multinational clothing retailer could only end it after December 3, 2027.
Nova Holdings Ltd argues that in utter breach and violation of the sublease, the defendant terminated it effective July 1, 2025.
“The termination of the lease by the defendant was done prematurely and 29 months earlier than the time permitted by the sub-lease for the defendant to terminate the lease,” part of the suit documents state.
Nova Holdings argues that since the sublease expressly prohibited the defendant from terminating it before the expiry of 66 months from the date of commencement, it is entitled to rent for the period within which LC Waikiki could lawfully terminate it, being rent for 29 months.
It also argues that it will suffer damages for loss of business opportunity as a result of locking out other potential tenants and leasing out the premises to LC Waikiki under the comfort that it would run for a continuous period of 66 months before termination.
“The defendant terminated the sublease after serving three years with a balance of two and a half years to the period when it was permitted to terminate the sublease,” the firm says.
Nova Holdings says that the rent due from LC Waikiki under the sublease was Sh1.1 million and a service charge of Sh124,193 per month for the fourth year, Sh1.1 million and a service charge of Sh130,403 per month for the fifth year, and Sh1.2 million and a service charge of Sh136,923 for six months of the sixth year.
