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Kenya: Postal Corporation in court battle over Machakos land lease

A State corporation is entangled in a court battle with a company for terminating a land lease entered four years ago and allegations of failing to comply with a court order.

Postal Corporation of Kenya (PCK) terminated an agreement it entered with Romiko Channels Limited for lease of a vacant plot in Machakos town citing non-payment of rent.

In court papers, Romiko Channels Limited is accusing PCK of breaching the terms of the lease entered on June 11, 2014.

“The respondent, while knowing that it was in breach of implied terms of the lease, terminated the lease on grounds that the applicant had failed to make payments for rent and had failed to take over possession of the leased property,” Romiko states in documents filed before the Environment and Land Court in Machakos.

LAND RATES

The company says it could not develop the land because PCK had not cleared accumulated land rates owed to the Machakos County government to the tune of Sh2,312,410.

The company went to court to contest the termination of the lease pending judicial review proceedings.

But the State corporation failed to reverse its decision despite a court order.

Romiko now wants PCK to be cited for contempt of court.

“The applicant contents that the actions of the respondent are unfair, unreasonable, irrational and illegal, requiring the intervention of this court,” the company says.

COURT ORDER

The court had on January 22, 2018 stayed PCK’s decision to terminate its lease agreement with Romiko and ordered that the company retains the lessee of the plot.

But in a replying affidavit, PCK says it had already entered into an agreement with a third party for the lease of the same property before the case was filed at the High Court.

“The said third party has been in possession of the said suit property since August 2017 way before the applicant filed the judicial review proceedings,” the company says through Miller and Company Advocates.

Although the PCK says it ordered the third party stop developing the property, the company alleges that the court order was not complied with.

PCK in a letter to the Machakos County Planning Officer dated December 8, 2017, refers to the third party as Bonface Mulwa Mutuku, Rachel Macharia, Irene Mwangi and Stephen Ndungu.

In terminating the lease agreement with Romiko Channels Limited, PCK said the company had not paid rent.

By Daily Nation

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