Sh1.29bn Landlord-Tenant War Over Kilimani Plaza Heads to New Court Showdown

A long-running dispute over Nairobi’s Senteu Plaza has taken another turn. The Environment and Land Court this week dismissed an application by former tenant SBS Dunhill Group.

The conflict centres on a commercial building in Kilimani. It began with a six-year lease signed in October 2017. Relations later deteriorated badly.

SBS Dunhill says its international board resolved in June 2017 to set up operations in Nairobi. The company claims it informed the landlords of its intention to buy the plaza at lease end.

The firm expanded its footprint through additional licence agreements. It occupied the first floor and other sections. Heavy investments followed.

At the heart of the argument was spending of roughly Sh1.2 billion on upgrades. This included street lighting along key roads, CCTV systems and landscaping works.

These works were done with the landlords’ knowledge according to the tenant. They formed part of preparations for eventual ownership. Excess rent deposits added fuel to the row.

Landlords led by Ajeetkumar Shah rejected any sale agreement. They denied receiving board resolutions. The lease documents contained no such clause.

The Environment and Land Court ruled on the purchase claim last December. It found the board resolution did not bind the owners. They were not parties to the meeting.

The judgment flagged serious document issues. Discrepancies appeared in execution dates. One purported signatory had died earlier.

SBS Dunhill was evicted in May 2025. The owners leased the premises to a new tenant. That occupant sought tribunal protection.

In the latest ruling on June 15 the court declined to quash tribunal proceedings. SBS Dunhill failed to provide sufficient evidence of irregularities.

Commercial real estate in areas like Kilimani remains attractive. Tenants often invest in fit-outs and external upgrades. Such moves create risks without formal contracts.

The case highlights common pitfalls in Kenyan commercial leases. Verbal assurances rarely hold up in court. Detailed records are essential.

Senteu Plaza continues under the new tenancy. Legal costs have mounted for all parties over several years. Further proceedings remain possible.

For Nairobi’s growing commercial property market this saga offers a clear lesson. Clear terms and proper documentation prevent prolonged battles over prime assets.