Judge clears way for suits against landlords withholding deposit
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Tenants struggling with rent are also being encouraged to alert their landlords that if they see us delaying with the rent, they can switch on their television to hear the President ask for the one year extension to deliver.
On January 23, 2025, Justice Helene Namisi of the High Court at Milimani Commercial and Tax Division ruled against LP Holdings Ltd, overturning a previous decision by the Small Claims Court.
Justice Namisi stated that the Small Claims Court (SCC) has jurisdiction to hear cases involving the refund of rent deposits, as such claims fall under Section 12(1)(b) of the Small Claims Court Act, which covers "contracts relating to money held and received."
When Dr Michelle Muhanda decided to move from her rented house in one of Nairobi's upmarket estates, Woodlands Grove Villas, she contacted the development manager to ask for her deposit.
She expected the process to be seamless, having been a tenant for seven years without any problems or confrontations with the development manager, LP Holdings Ltd.
