Naivas Supermarket is embroiled in a multi-million rent row with one of its former landlords at the closed Naivas Ngong branch. The retailer is seeking to be exempted from paying its former landlord in Ngong rent amounting to Sh. 52.3 million. The retailer argues that it cannot pay the rent because its business at the premises did not break even.
This has been revealed in the proceedings of an arbitration, in which Naivas says that its business at the premises was frustrated by the government’s decision to block an access path that led to the business. It then adds that the landlord who was identified as Premier Home & Properties Limited is to blame for constructing the building close to a road.
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Naivas had leased the premises in August 2012. According to the lease agreement, Naivas was to operate at the premises for a period of 10 years. It enjoyed customer flow of about 2,000 customers daily. In October 2019 though, the government started the construction of the Kiserian – Ngong town road. The road passes by the supermarket. The construction works forced the contractor to block part of the access to the supermarket. This led to loss of business which eventually forced Naivas to shut down its Naivas Ngong branch.
“Blocking access to the premises affected the business and flow of customers, which is about 35 percent and attempt to engage the property dealer was futile. This left the shop with no choice but to close down,” Naivas Limited’s representative, Evelyne Njeri Wanjau, told the High Court in Kajiado.
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However, the landlord has demanded that Naivas pays the outside amount of rent in the lease agreement. The landlord argues that Naivas had requested a 10-year fixed term with no termination clause. The lease was to expire on July 31, 2022.
