Case Study: Can a Former Tenant Claim for a Deposit Refund in the Small Claims Court?
The simple answer is YES. However, certain legal considerations apply, as highlighted in a recent High Court Judgment by Hon. Lady Justice Helene R. Namisi in Muhanda v LP Holdings Ltd [2025] KEHC 393 (KLR).
Case Background
The Appellant was a tenant of the Respondent’s property from February 2015 to October 2022. Upon vacating the premises, she requested a joint inspection with the Respondent, but they failed to attend.
Subsequently, she sought a refund of her rental deposit. Instead of refunding the amount, the Respondent issued a Bill of Quantities dated May 10, 2023, amounting to Kshs 271,857.60 for alleged repairs. The Appellant disputed these charges as excessive and unsupported, prompting her to file a claim in the Small Claims Court, seeking a refund of Kshs 230,000 along with other reliefs.
In response, the Respondent filed a Preliminary Objection, arguing that the dispute involved a rental deposit, which, according to Section 12 of the Small Claims Court Act, was outside the court’s jurisdiction. The Respondent relied on the case of Christofferson v Kavneet Kaur Sehmi t/a The Random Shop (Civil Appeal E036 of 2022) [KEHC 14035 (KLR)], which stated that the Small Claims Court lacks jurisdiction over rental deposit disputes.
The Appellant, however, argued that her claim was not about rent arrears, but rather a refund of a deposit, which falls under Section 12(1)(b) of the Small Claims Court Act as a matter of contractual money held and received.
Court’s Analysis & Ruling
The High Court found that the Small Claims Court (trial court) had misinterpreted the law by focusing on rent arrears, which was part of the Respondent’s counterclaim, rather than addressing the Appellant’s claim for a deposit refund.
The court held that the claim was contractual, involving money held and received, and thus fell within the jurisdiction of the Small Claims Court under Section 12(1)(b). The decision was guided by the case of Greenlife Crop Protection Africa Ltd v Trovic Ventures Ltd & 2 others (Civil Appeal E148 of 2023).
The Small Claims Court had jurisdiction to hear the matter and as a result, the High Court set aside the trial court’s decision and ordered that the case be heard afresh before a different adjudicator.

What this Means for Tenants & Landlords
This Judgment has important implications for both tenants and landlords:
• Once a landlord-tenant relationship ends, the Rent Restriction Tribunal has no jurisdiction over deposit refund disputes.
• Former tenants can now file claims in the Small Claims Court to recover their rental deposits, as such claims are considered contractual matters involving money held and received.
• This decision enhances access to justice, offering tenants a faster and more cost-effective way to resolve deposit disputes without lengthy legal battles in rent tribunals.
• Landlords are now obligated to account for rental deposits transparently, ensuring fair treatment of tenants and preventing unjustified deductions.