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‘We owe you nothing’: Chester House sues City Hall over 'wrong' rent defaulter listing
City Hall, the headquarters of the Nairobi City County Government.
The owner of Chester House in Nairobi’s Central Business District has sued the Nairobi County Government after the building was incorrectly listed as a land rate defaulter.
In a petition, the owners of the building said that the county government’s threat to enforce land rate payments was unlawful, mistaken and potentially destructive, as there were no arrears.
Chester House Limited has sought temporary orders to prevent the county government from taking enforcement action that could disrupt the dozens of professional and commercial businesses operating from the premises.
In an affidavit, company director Jared Benson Kangwana said, “The applicant has fully paid land rates for the year 2025 in respect of its property and holds official receipts and invoices confirming this fact, yet fears imminent, unjustified and reputational damaging action damaging action by the respondent, akin to what befell Kenya Power and Lighting Company at Stima Plaza.”
Read: Uganda House, Chester House among buildings targeted in City Hall’s Sh50bn unpaid land rates raid
Justice Judy Omange of the Environment and Land Court ordered the county government to respond to the case within 14 days.
The court has ordered the parties to maintain the status quo, pending the mention of the case on June 10.
The proprietor said that the building is a high-occupancy commercial premises hosting an array of tenants, including professional firms, law offices, medical clinics, financial consultants, retailers and other licensed businesses.
Mr Kangwana said that the continuity of their operations depended heavily on uninterrupted services and stable access to a dignified commercial environment.
On May 16, the city county government published a notice listing hundreds of land parcels alleged to be in arrears and threatening enforcement actions, including auctions, obstructions and the public humiliation of defaulting properties.
The county government has been clamping down on land rate and rent defaulters, planning to recover billions of shillings in arrears.
A notice claimed that Chester House had rent arrears of Sh122,500 and Sh46 million shillings, respectively, but Chester House claimed it had no connection with the listed land parcels.
“The centrality of Chester House within Nairobi’s commercial fabric makes it especially vulnerable to reputational harm. A single day of closure or disruption could irreversibly damage tenant relationships, contractual obligations,” he said.
Ray Tollo of Gitonga & Tollo Advocates LLP submitted on behalf of Chester House that the threat of enforcement action against a property with no arrears had the potential to ruin its reputation.
Mr Tollo said that the notice had exposed the building to reputational damage, operational risk and potential third-party liability for its tenants, who rely on stability and access in order to conduct their daily business.
“This kind of attribution creates a serious risk,” he said, adding that the county enforcement officers embarked on aggressive measures without verifying the specific property or issuing notice to the affected owners.
The proprietor argued that, in a lawful society, entities accused of default are entitled to fair administrative action, including proper notice, an opportunity to respond, and access to an independent adjudicator if disputes arise.
“Instead, the county’s publication and subsequent threats of enforcement violate key constitutional protections under Articles 40 on protection of property, 47 on the right to fair administrative action, and 28 on the right to dignity,” he said.
This case will serve as a test of how far devolved units can go in the name of revenue collection, and of whether due process is being respected in the administration of land rates in the capital.
If the suit is successful, it may set a precedent for how local governments handle enforcement and could prompt a broader discussion on the need for fairness, accuracy and accountability in public administration.