Habanos Lounge: Police, goons and rent row as auctioneers face resistance

The establishment, operated by Taskim Hadanos Chill & Grill Ltd and owned by businessmen Morris Macharia Mbuthi and David Karigo Muthee, opened towards the end of 2023 on leased land for an undisclosed monthly rent.

The landlord, former employees and suppliers are now pursuing outstanding payments, with the landlord seeking recovery of rent arrears and an eviction matter before the court.

According to our sources, the latest dispute follows an earlier rent default that prompted the landlord to engage auctioneers.

The matter was temporarily resolved, but arrears subsequently accumulated again, leaving the landlord seeking rent arrears, including interest.

Efforts to recover the debt have reportedly encountered resistance at the premises.

Political connections and security deployment

The complainants allege that Macharia has relied on his close relationship with George Ruto, the President’s son, to mobilize security personnel and groups of men to frustrate auctioneers pursuing the outstanding rent.

Photographs provided by the complainants show armed riot police and groups of men at the entertainment premises.

Sources allege that personnel associated with the police Quick Response Unit (QRU) and individuals linked to the National Intelligence Service (NIS) have been involved in efforts to repel the auctioneers.

The sources also identify Charles Kilonzo as the person in charge of the group of men described as goons.

The alleged involvement of specialized police personnel and intelligence-linked individuals raises questions about the use of state security resources in a private commercial dispute.

The complainants want the rent recovery process to proceed without interference.

Workers and suppliers also seek payment

The dispute extends beyond the landlord.

Former waitresses, kitchen staff and security workers are reportedly pursuing unpaid salaries, while suppliers are seeking payment for goods and services delivered to the business.

According to our sources, some employees have been dismissed after approximately three months, particularly when they demand their outstanding wages.

Former staff returning to seek payment have also reportedly faced harassment at the premises.

Section 17 of Kenya’s Employment Act, 2007, requires employers to pay wages earned for work performed.

The law also provides penalties for certain willful failures to pay wages. (Employment Act, 2007)

What does the law say about rent arrears?

Kenya’s Distress for Rent Act, Cap 293, provides a legal mechanism for recovering rent that is due and unpaid.

Section 3 addresses the right to levy distress for rent, subject to the Act’s provisions.

For qualifying controlled business tenancies, Section 12 of the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301, empowers the Business Premises Rent Tribunal to make orders concerning recovery of rent arrears and possession, and to permit distress for rent.

The legal framework provides avenues for landlords to pursue rent arrears through established procedures.

The Habanos Lounge dispute now raises a wider question of accountability:

Can a landlord, workers and suppliers pursue outstanding payments without intimidation or interference, regardless of a business proprietor’s alleged political connections?