The National Social Security Fund (NSSF) has won a legal battle over control of its 455 capacity car parking bay, which is located on Kenyatta Avenue in Nairobi.
Justice Samson Okongo upheld an appeal by NSSF and dismissed application by two firms that were challenging decision by NSSF to pick another firm to run the parking bay.
The dispute started in 2006 when NSSF picked Hasmo Agencies Limited to replace Value Zone Limited as the operator of the parking bay, prompting two other firms that had been subcontracted to appeal the decision.
“The first respondent’s (Sokomania Limited) notice of motion dated January 7, 2016…and the second respondent’s (Lulu East Africa Limited) notice of motion dated January 7, 2016…are dismissed with costs,” Justice Okongo ruled.
In the ruling dated February 14, Justice Okongo allowed the appeal by NSSF to set aside the orders made by the Rent Tribunal, which had restrained it from taking over the parking bay.
The court was told that back in 2013 NSSF entered into an agreement with Value Zone Limited for the management and collection of the parking fees.
Subsequently, Value Zone Limited subcontracted the two firms of Sokomania and Lulu to manage and collect the parking fees on its behalf.
The contract between Value Zone and NSSF expired on December 31, 2015, and the contract between the two firms and Value Zone also expired on same date.
Prior to expiry of the contract, NSSF had picked Hasmo Agencies to take over management of the parking space as from January 1, 2016.
But despite Value Chain informing the Sokomania and Lulu to vacate the premise and allow the new firm to take over, the two firms declined and instead filed an appeal before Business Rent Tribunal.
The tribunal granted orders restraining NSSF from evicting the two firms pending hearing and determination of the case prompting NSSF to move to High Court.
Justice Okongo said that the tribunal misdirected itself on several issues and as a result arrived at a wrong decision, noting that NSSF had established grounds that justified the court to interfere with the decision of the Tribunal.