The High Court has ordered LP Holdings Ltd to refund KSh 230,000 in rent deposit to former tenant Michelle Muhanda following a protracted dispute that began when she vacated a residential premises in October 2022.
Justice Francis Tuiyott, sitting at the Milimani Commercial Courts, delivered the ruling on November 28, 2025, dismissing the landlord’s counterclaim for KSh 271,857.60 in alleged repair costs while also declining Muhanda’s demand for KSh 800,000 in punitive damages.
Muhanda, a marketing consultant, had occupied the three-bedroom apartment in Lavington from January 2015 to October 2022 under a tenancy agreement that required a three-month rent deposit of KSh 230,000, equivalent to the monthly rent of KSh 76,666.
Upon giving notice and vacating the property in good condition, Muhanda requested the return of her deposit as stipulated in the agreement. LP Holdings Ltd refused, claiming extensive repairs were needed and presenting an invoice for KSh 271,857.60 covering repainting, plumbing works, and replacement of curtains and light fittings.
In her suit filed in February 2023, Muhanda argued that the landlord’s deductions were exaggerated and that normal wear and tear could not justify withholding the full deposit. She further sought punitive damages for what she termed “malicious retention” of her money, causing her financial distress and forcing her to borrow from friends to secure alternative accommodation.
During the hearing, LP Holdings Ltd’s property manager David Kamau testified that the premises required complete repainting because of “stubborn stains” and that all sanitary fittings had to be replaced due to “tenant negligence.” He produced photographs showing chipped paint in the living room and limescale in bathroom taps.
Muhanda’s lawyer, James Mwamu, countered with an independent valuation report from a registered quantity surveyor showing that fair wear and tear repairs would not exceed KSh 48,000. The report noted that curtains naturally fade after seven years and that minor paint touch-ups were standard practice between tenancies.
Justice Tuiyott, in a 28-page judgment, found the landlord’s repair claims largely unsubstantiated. “The respondent has failed to demonstrate that the alleged defects were beyond normal wear and tear for a property occupied for seven years,” the judge ruled. “The invoice presented appears inflated and includes items such as complete curtain replacement which cannot reasonably be attributed to the tenant.”
The court ordered LP Holdings Ltd to refund the full KSh 230,000 deposit within 14 days, together with interest at court rates from the date of filing the suit. However, the judge declined to award punitive damages, stating that while the landlord’s conduct was unreasonable, it did not meet the threshold for exemplary damages.
Muhanda, speaking outside the court after the ruling, expressed relief but maintained that the ordeal had been unnecessarily painful. “I vacated the house in perfect condition and even left some items behind as goodwill,” she told journalists. “They kept my money for three years, forcing me to pay rent elsewhere while fighting in court. I am glad justice has been served, though I wish the court had awarded the punitive damages to teach such landlords a lesson.”
LP Holdings Ltd’s lawyer, Fredrick Ngatia, said his client would comply with the refund order but was considering an appeal on the interest component. “We respect the court’s finding on the quantum of repairs,” Ngatia said. “However, we believe the deposit should have been subjected to reasonable deductions for wear and tear.”
The ruling has been welcomed by tenant advocacy groups. The Kenya Tenants Association chairperson, Stephen Mutoro, described it as a landmark decision. “For too long, landlords have treated deposits as free money,” Mutoro said. “This judgment sends a clear message that deposits are not retention fees but trust funds to be returned unless damage is proven beyond normal wear and tear.”
The case highlights growing tensions in Nairobi’s rental market, where deposits of two to three months’ rent are standard but refunds are frequently contested. Data from the Rent Tribunal shows that deposit disputes account for 42 percent of all landlord-tenant cases filed in the city.
Muhanda’s victory comes after similar rulings in 2024 where courts ordered refunds in the KSh 150,000–KSh 400,000 range, establishing a pattern of judicial protection for tenants against inflated repair claims.
