The proprietor of Chester House has sued Nairobi County after the building was wrongly listed among defaulters of land rates.
The owners of the building in the central business district said in a petition the threat by the county as part of plans to enforce land rate payments was unlawful, mistaken and potentially destructive, as it had no arrears.
Chester House Limited has sought temporary orders to block the county government from executing enforcement actions that could disrupt dozens of professional and commercial businesses operating from the premises.
"The applicant has fully paid land rates for the year 2025 in respect of its property and holds official receipts and invoices confirming this fact, yet fears imminent, unjustified and reputational damaging action by the respondent, akin to what befell Kenya Power and Lighting Company at Stima Plaza," said Jared Benson Kangwana, a director, in an affidavit.
Justice Judy Omange of the Environment and Land Court directed the county government to respond to the case within 14 days.
The court ordered the parties to maintain the status quo, pending the mention of the case on June 10.
The proprietor said the building is a high-occupancy commercial premises hosting an array of tenants, including professional firms, law offices, medical clinics, financial consultants, retailers and other licensed businesses.
Mr Kangwana said the continuity of their operations depends heavily on uninterrupted services, stable access and a dignified commercial environment.
The notice by the City Hall was published on May 16, listing hundreds of land parcels alleged to be in arrears, threatening to carry out enforcement actions including auction, obstruction and public humiliation of defaulting properties.
The county government has been clamping down on land rates and rent defaulters to recover billions of shillings in arrears.
The notice claimed that Chester House had rent arrears of Sh122,500 and Sh46 million, respectively but Chester House said it had no connection with the listed land parcels.
"The centrality of Chester House within Nairobi's commercial fabric makes it especially vulnerable to reputational harm. A single day of closure or disruption could irreversibly damage tenant relationships and contractual obligations," he said.
Through Ray Tollo of Gitonga & Tollo Advocates LLP, Chester House submitted that the threat of enforcement action against a property that has no arrears had the potential of ruining its reputation.
Mr Tollo said the notice had exposed the building to reputational damage, operational risk, and potential third-party liability to its tenants, who rely on stability and access to conduct daily business.
"This kind of attribution creates a serious risk," he said, adding that the county enforcement officers embarked on aggressive measures without verifying the specific property or issuing notice to the affected owners.
The proprietor argued that in a lawful society, entities accused of default are entitled to fair administrative action, including proper notice, an opportunity to respond, and access to an independent adjudicator if disputes arise.
“Instead, the County’s publication and subsequent threats of enforcement violate key constitutional protections under Articles 40 on protection of property, 47 on the right to fair administrative action, and 28 on the right to dignity,” he said.
The case is as a test of how far devolved units can go in the name of revenue collection and whether due process is being respected in the administration of land rates in the capital.
If successful, the suit may set a precedent for how local governments handle enforcement and could prompt a broader discussion on the need for fairness, accuracy, and accountability in public administration.
