Habanos Lounge Standoff: Auctioneers Meet Resistance as Police and Goons Descend

The establishment, operated by Taskim Hadanos Chill & Grill Ltd and owned by businessman Morris Macharia Mbuthi and David Karigo Muthee opened towards the end of 2023 on leased land with a monthly rent agreement.

The landlord, staff and suppliers are now pursuing recovery of outstanding balances.

According to our sources, the latest default follows an earlier dispute in which auctioneers were brought in to recover outstanding rent before the matter was temporarily resolved.

The landlord subsequently returned to the legal process after rent arrears accumulated again.

However, efforts to recover the debt have reportedly been met with resistance at the premises and eviction order is in court.

Political connections and security deployment

Our sources allege that Macharia has relied on his close relationship with George Ruto, the President’s son, to mobilise security personnel and groups of men [Goons] who have repeatedly frustrated auctioneers attempting to execute the recovery process.

Photographs held by complainants show armed riot police and groups of men at the entertainment premises.

Sources further allege that personnel associated with the police Quick Response Unit (QRU) and elements linked to the National Intelligence Service (NIS) have been involved in efforts to repel the auctioneers, whereby Charles Kilonzo is in charge of goons.

The alleged involvement of state security personnel raises questions about whether public resources are being used to protect private commercial interests and obstruct the enforcement of legal claims.

The dispute is not limited to the landlord.

Former employees have also raised concerns over unpaid wages, with sources describing a pattern in which waitresses, kitchen staff and security workers are allegedly dismissed after about three months, particularly when they press management for their salaries.

The workers’ claims point to a separate dispute over employment obligations, with former staff reportedly facing harassment when they return to demand outstanding payments.

Section 17 of Kenya’s Employment Act, 2007, requires employers to pay wages earned for work performed.

The law also provides penalties for certain willful failures to pay wages.

The law on rent arrears

Kenya’s Distress for Rent Act, Cap 293, provides landlords with a legal mechanism for recovering rent that is due and unpaid under a lease or tenancy agreement.

Section 3 recognizes the right to recover arrears through distress for rent, subject to the Act and other applicable laws.

Where a tenancy is controlled under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, Cap 301, the Business Premises Rent Tribunal may have a role in authorizing or supervising the recovery process.

The legal process is intended to provide a route for recovering outstanding rent without resorting to intimidation or force outside the law.

In the Habanos Lounge dispute, the central issue is whether the landlord and auctioneers can pursue the recovery process without interference, while former workers seek payment for services already rendered.

The allegations also raise a wider question of accountability:

Can political connections be used to shield a private business from lawful financial obligations, at the expense of landlords, workers and the rule of law?