KCB ordered to pay former tenant in cash safes dispute

The Court of Appeal has directed KCB Group #ticker:KCB to pay its former landlord after the lender left behind two safes in the building for ten months following the termination of its tenancy.

Justices Jamila Mohamed, Fatuma Sichale and Kantai ole Sankale ruled that Pickwell Properties Ltd was entitled to an equivalent of ten months’ rent as the two safes, which weighed in excess of 300 kilogrammes, were still at Shankardass House on Moi Avenue.

Pickwell said KCB remained in possession of the premises until October 31, 2006 when it removed the last of its trade fixtures, which included the two safes, after it terminated the tenancy on December 14, 2005 KCB.

The property firm demanded payment for the 10 months the safes sat at Shankardass House, prompting the legal fight. The building was later taken over by KCB’s rival Equity Bank.

The judges also upheld a decision of High Court judge Eric Ogolla, which found that KCB was not entitled to a refund of Sh12.7 million deposited as security and a further Sh3.9 million to cater for cost of renovation.

“In the circumstances of this case, I find that the appellant was in actual possession of the suit premises until October, 31, 2006, when it removed the last of its fixtures and fittings from the suit premises,” Justice Mohamed said in a judgment concurred by the other judges.

The Judge said according to the terms of the tenancy agreement, KCB was liable to pay rent until the time that it handed possession of the building to Pickwell Properties Ltd.

In 2013, Justice Eric Ogolla ruled that KCB was not entitled to a refund of security until it had fully discharged its tenancy obligations and restore the building to its former state.