President Uhuru Kenyatta’s personal assistant Jomo Gecaga has opted to settle a Sh950,000 rent dispute with Dr Evans Kidero out of court.
The parties will appear in court next Wednesday to confirm whether they will have reached a deal. Magistrate Edgar Kagoni had granted them two weeks to formalise their terms of settlement.
Once consent is filed and adopted by the court, the matter will be withdrawn.
JSTA Ltd, which is associated with Jomo’s father Udi Gecaga filed the case in October seeking to block its eviction from Gem Suites Riverside apartments that costs $5000 (Sh540,000) monthly. The documents showed that Jomo was the occupant of the apartment.
It sought to have the court intervene over the rent dispute, saying it would cause them great embarrassment if GemInvest instructed auctioneers to levy distress and attempt to evict Gecaga. The row was triggered by a notice seeking to pay the halved rent of Sh250,000 beyond September to December and a push to forgo paying an additional lease fee of Sh950,000.
Udi had requested the Kideros to extend the offer for paying half rent to December, arguing that the cash flow in the family business had weakened in the wake of Covid-19 economic hardships. But the Kideros, under GemInvest Limited, rejected their request.
Kidero said out of courtesy, utmost good will and due regard for the prevailing economic circumstances occasioned by Covid-19, they extended an olive branch to JSTA by first applying the security deposited by JSTA of 1,084,900 to settle the rental arrears owing to the company for the month February and March 2020.
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Gem subsequently agreed to JSTA request to substitute the rental amount at Sh542,450 with Sh400,000 from April 1.
On September 11, JSTA then sought a further reduction in rental payment to Sh250,000 as the rental amount for the month of September through to December 2020. GemInvest rejected the request.
As a result, Gem, on September 17, wrote to JSTA issuing a termination notice for failure to clear the outstanding amounts of Sh950,000 owed by September 30 as per the tenancy agreement.