Malindi Court Reveals How Tenants Can Lose Millions Despite Paying Rent

The Environment and Land Court in Malindi has ordered a commercial tenant to pay Ksh21.9 million after finding the tenant in breach of several obligations under a lease agreement.

The judgment, delivered on 22 September 2026, followed a dispute dating back to 2020 over unpaid utility charges and unauthorised structural alterations to the leased property. The landlord told the court that the tenant had failed to pay charges for water, electricity and sanitary services. She said she was forced to spend Ksh1.6 million to restore the services after the tenant defaulted.

The landlord also accused the tenant of carrying out structural alterations without obtaining written consent. She sought Ksh20.2 million for restoration works and a further Ksh65,000 in professional assessment fees.

The tenant filed a defence denying liability but did not call any witnesses or produce documentary evidence to support the case. The court found that the landlord had proved her claims on a balance of probabilities, meaning that her account was more likely to be true than not. With no evidence from the tenant to challenge the landlord’s testimony, the court found in her favour.

The ruling highlights the range of obligations contained in commercial lease agreements beyond the payment of rent. Tenants may also be required to meet utility charges, obtain consent before making alterations and comply with other contractual conditions.