[Source: Business Daily, by Philip Muyanga]
Co-operative Bank of Kenya has gone to court seeking an injunction restraining its landlord, a wealthy Mombasa-based family, from evicting the lender from its Mtwapa branch.
In a suit filed at the Environment and Land Court in Mombasa, the bank says from November 2007 it has been a tenant of Mombasa Maize Millers Ltd, which is associated with the family of Mombasa millionaire Mohammed Islam Ali.
It argues that upon expiry of the lease, parties negotiated a new contract covering five years and three months effective November 2013, with an option of renewal.
Co-op Bank claims that at some point when the lease was in progress, Mombasa Maize Millers began exerting pressure on it to move out of the premises, citing the company’s expansion plans as the reason.
According to the bank, they were searching for alternative premises. “Unfortunately, the plaintiff (bank) states that despite their effort it became clear by around July 2018 that an alternative location was not available,” the bank argues in its suit papers.
Co-op Bank further argues it entered into negotiations to secure extension of the lease to December 2019.
The bank says the Central Bank of Kenya requires that before a lender’s branch business is closed there should be a written consent of the regulator following a six-month notice.
Co-op says the landlord has declined to extend the lease, but threatened to evict it by January 31. Co-op Bank is seeking to stay until December 31 this year.
There are interim orders restraining the landlord from evicting the lender.
The case has been fixed for hearing on May 6.
[Full article: Business Daily, by Philip Muyanga]
