PRIME Kericho Hotel lease row reveals risks in tenant-funded facelifts 10h ago

A legal dispute in Kericho County between Majani Hotels Group and Tea Hotel Limited highlights the financial risks associated with tenant-funded property renovations without a clear contractual framework. Majani Hotels, which signed a 20-year lease in August 2023 for a hotel and swimming pool complex, claims to have invested Sh10 million in revitalizing a dilapidated facility. The tenant sought court intervention to prevent lease termination, arguing their investment justified rent reconciliation and revised revenue-sharing terms. However, Tea Hotel, the landlord, counters that the renovations were merely to make the premises operational, not an investment, and accuses Majani of failing to pay rent for over two years and subletting illegally. The Environment and Land Court has declined to issue interim orders, emphasizing that contracts cannot be rewritten and directing the case for a full hearing to determine the validity of the termination notice and rent obligations.

















