A real estate firm has sued Imperial Bank Limited (under receivership) for non-payment of rent for 15 months, which has accrued to Ksh84 million. Upper View Properties, a company owned by Imperial Bank shareholders, is seeking to evict the troubled bank from the building that houses its Mombasa branch.
Through Lawyer Andrew Wandabwa, the company says, Kenya Deposit Insurance Corporation (KDIC), which took over the property as receiver when the bank was put under receivership has declined to return the property records.
According to court documents, Wandabwa claims that KDIC has refused to return ETR machines, accounts and tax records, thus making it impossible for other tenants pay rent, as the property was also used to take a loan of Ksh250 million from KCB to recapitalise the bank. “Upper View Properties Limited is the registered proprietor of the land situated in Mombasa County measuring 0.59 acres, and the building by the name Mombasa Building has been built at that parcel of land,” claims Wandambwa.
He explains that the lease agreement between Imperial Bank and the company was entered on May 28, 2010, where 31,162 Square feet was leased to the bank. The bank’s lease expired on June 30, 2015, and has never paid rent since it was put under receivership.
“The bank has refused to execute the lease forwarded to it. Thus becoming a trespasser, and the company is entitled to profits in respect of the bank’s continued unlawful occupation of the premises,” said Wandabwa. “The bank has refused to execute the tendered lease or pay the rents due alleging that it is the beneficial owner of the subject property on the basis that the company acquired the suit premises from dividends declared by the directors of the bank when the directors/shareholders knew, or ought to have known that the bank was not earning any profits.”
| Relevant Period | Rent Due (Ksh.) |
| 01 July 2015 to 01 October 2015 –Qtr 1 | 10,161,407.00 |
| 02 October 2015 to 02 January 2016 –Qtr 2 | 10,161,407.00 |
| 03 January 2016 to 03 April 2016 –Qtr 3 | 10,161,407.00 |
| 04 April 2016 to 04 July 2016 –Qtr 4 | 10,161,407.00 |
| 05 July 2016 to 05 October 2016 –Qtr 1 | 11,177,549.00 |
| Oct 2016 – Dec 2016 – Qtr-2 (mesne profits) | 11,177,549.00 |
| Jan 2017 – Mar 2017 Qtr-3 (mesne profits) | 11,177,549.00 |
| TOTAL | 84, 339,682.00 |
He said the bank has the ulterior purpose of grabbing the said property. “By reason of the bank’s refusal to execute the lease, its continued possession of the suit premises is illegal, amounts to trespass, and the plaintiff claims for an order of eviction and accrued profits,” said Wandabwa.
Wandabwa says that Upper View Properties continues to suffer loss and damage and the danger of being foreclosed upon, by reason of the fact that the rents due from the building are assigned to Kenya Commercial Bank Limited.
The company wants the bank to pay Ksh84,339,682 being rent arrears together with the accrued profits exclusive of VAT.
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