Tenants who struggle to get back their rent deposits can now take landlords to the Small Claims Court (SCC).
This follows a ruling by Justice Helene Namisi of the High Court on January 23, 2025. The judge overturned an earlier decision by the SCC, which had dismissed a case on jurisdiction grounds.
The case was filed by Dr. Michelle Muhanda after she moved out of her house at Woodlands Grove Villas in Nairobi in October 2022. She had paid a rent deposit of KSh 1.23 million and expected a refund after seven years of tenancy.
Instead, the property managers, LP Holdings Ltd, refused to return the money. They claimed she owed KSh 271,857 for repair works. Dr. Muhanda argued that the house was in good condition and that her request for a joint inspection was ignored.
She first took the case to the SCC, asking for her deposit, damages, and compensation under the Consumer Protection Act. The court dismissed the matter, saying it had no jurisdiction.
Dr. Muhanda then appealed to the High Court.In her ruling, Justice Namisi said the SCC is the right forum to handle rent deposit disputes. She explained that claims for money held and received fall under The Constitution. The judge noted that the deposit was a contract between tenant and landlord, and therefore within the SCC’s powers.
The judgment means that tenants can now sue landlords who withhold rent deposits. Cases filed at the SCC must be determined within 60 days, making the process faster and cheaper.
Lawyer Joseph Mwai, who represented Dr. Muhanda, welcomed the ruling.
The decision is seen as a big win for tenants across the country.
Source: The Nation.
By Vivian K.