Knight Frank backs claim against church in lease row

Corporate News

A signage at Al Yusra’s branch within the City Centre Aug 28. Knight Frank says the restaurateur had a valid tenancy contract with the church. PHOTO | SALATON NJAU 

By GALGALLO FAYO, gfayo@ke.nationmedia.com

In Summary

• Knight Frank says that the restaurateur had a valid tenancy agreement and distanced itself from any liability arising from the termination of tenancy.
• Al Yusra has sued the Kenya Conference of Catholic Bishops and Knight Frank Limited for Sh88 million it claims to have been the loss incurred following the cancellation of its lease agreement for a section of the Catholic Church-owned Waumini Building in Westlands.

Real estate management company Knight Frank has supported a compensation claim of nearly Sh90 million made by restaurateur Al Yusra which argues that its tenancy was terminated unlawfully and due to religious prejudice by the Catholic Church.

In a court filing related to an ongoing court case between Al Yusra and the Catholic Church, Knight Frank says that the restaurateur had a valid tenancy agreement and distanced itself from any liability arising from the termination of tenancy.

Al Yusra has sued the Kenya Conference of Catholic Bishops (KCCB) and Knight Frank Limited for Sh88 million it claims to have been the loss incurred following the cancellation of its lease agreement for a section of the Catholic Church-owned Waumini Building in Westlands.

“The decision to terminate the tenancy agreement between the petitioner and the 1st respondent (KCCB) was unilateral and made by the first respondent resulting from a meeting of the trustees of the first respondent which second respondent (Knight Frank) was not privy to,” says Margaret Motiri, Knight Frank’s property manager.

Ms Motiri in a sworn affidavit says that Knight Frank rented the property to Al Yusra in December after instructions from KCCB, and says that all terms were approved by the church body.

She says Knight Frank allowed Al Yusra access to the premise after KCCB approved the terms and the rent paid. 

Knight Frank claims it received an e-mail from KCCB in January stating that it has resolved not to have a restaurant business at its premise and that it intended to terminate the tenancy agreement with Al Yusra.

READ: Restaurateur in lease row with Catholic Church

Knight Frank says it wrote back advising KCCB to seek legal advice from its lawyers on the consequence of their resolution.

Al Yusra was allowed to continue with renovation of the building until March when it was allegedly stopped from accessing the premise and the KCCB distanced itself from the agreement signed on its behalf by Knight Frank.

The restaurant’s owners want the High Court to compel the church body to allow them to operate the eating joint as per the agreement or compensate them for termination of contract.

Through lawyer Rahma Jillo, Al Yusra claims that “the only reason given was that the (Catholic) bishops were uncomfortable in having Somali Muslims at the headquarters of the Kenya Conference of Catholic Bishops and that the restaurant would be patronised by Somalis.”

Knight Frank says it never supported attempts to deny Al Yusra its right to operate its business from the Waumini House on the basis that “its directors are of Somali ethnicity.”

Knight Frank further claims that the Kenya Conference of Catholic Bishops had requested it to profile all tenants at Waumini House and provide details of other Muslim tenants.

“Which instructions (to profile tenants) the 2nd respondents did not carry out as it would be tantamount to validating the 1st respondent’s (KCCB) bias towards the petitioner (Al Yusra),” says Knight Frank.