- Residents of Nanak House were informed about the transfer of ownership of the commercial building in September 2024.
- The new proprietor increased the monthly rental fee to KSh 600,000 and set the goodwill value at KSh 15 million.
- On Wednesday, March 19, business owners and merchants were prevented from accessing the premises as the newly acquired owner barred their entry.
Over the last two decades, entrepreneurs at Nanak House within Nairobi's central business district have experienced favorable conditions for running their businesses.
Nevertheless, the circumstances for the tenants shifted dramatically in September 2024 after the property was purchased by a new proprietor.
The tenants were informed about alterations in the rent payment procedures as ownership transitioned from the initial proprietor to an undisclosed new owner.
What modifications occurred at Nanak House in Nairobi?
The entrepreneurs protested against the revised rental conditions that hiked the monthly rent from KSh 150,000 to KSh 600,000 regardless of the store’s dimensions.
The new proprietor increased the goodwill payment to KSh 15 million. Non-compliance would result in eviction without prior notification.
In October 2024, the occupants shifted their case to the Business Premises Rent Tribunal and submitted an appeal against the rent hike.
In their plea, they protested about being ill-treated by the new owner who had disconnected electricity and water supplies.
As per documents reviewed by Pawonation.com.co.ke The tenants received injunctions preventing the implementation of the new rent guidelines set forth by the landlord in December 2024.
Hon. Cyprian Mugambi, who was heading the tribunal, ordered that:
- The landlord cannot hike up the rent for the property without justification.
- The tenant will keep paying the rent at the present rate.
- The landlord and their representatives must not harass the tenant or obstruct the tenant’s use and enjoyment of the leased property.
- The issue has been declared resolved.
- There are no instructions regarding costs.
Conflicting orders
In March 2025, however, the new owner submitted an appeal to the tribunal and succeeded in getting an order that supported the new tenancy terms along with adjustments to the rental payments.
The directives given by Hon. Mike Makori on Monday, March 17, came as a surprise to the tenants and have left them concerned about the safety of their businesses.
For more than two decades, we've been renters, with our lease set to end next year. We currently have a court order mandating that things stay as they are, but yesterday, representatives of the new owner arrived and prevented people from opening their stores.
"This morning, even after receiving the order, she brought stones and obstructed the building. We urgently request your intervention for the safety of our enterprises as she is disregarding all directives," stated one of the occupants.
They encouraged the new owner to respect the directive released in December 2024, mentioning that they have maintained peaceful operations over the past two decades.
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