A rent row between one of Nairobi’s better-known nightspots and its landlord is now before the Milimani Commercial Court, with about Sh16.5 million said to be at stake.
Golden Embassy Limited, which runs Sinaloa Club & Restaurant, is being pursued by its landlord and by Yunily Auctioneers over arrears the landlord puts at Sh10.8 million. A further Sh5.7 million, covering rent for August, September and October 2026, has since fallen due, taking the disputed sum to roughly Sh16.5 million before penalties, interest and auctioneer’s charges are counted.
When the case came up on Monday the court told the club to file proof of the rent it says it has paid by the close of business on 3 August 2026, and directed both sides to file written submissions on the landlord’s application to set aside an interim injunction. The landlord argues that order was obtained through material non-disclosure about the state of the rent account. The matter is due to be mentioned again on 17 August, when further directions are expected.
According to the landlord, the tenant fell into default after the first quarter of the lease and kept missing payments even after being allowed to switch from quarterly to monthly rent, stopping altogether after January 2026. Demand letters were issued on 19 January, 24 February and 10 March before auctioneers served a proclamation notice and began distress proceedings.
Golden Embassy rejects that account. The company says it has been paying rent, accuses the landlord of trying to rewrite the terms of the commercial lease and of moving to evict the business despite interim orders issued in April, and challenges a clause that imposes a two per cent daily penalty on overdue rent.
Alongside setting aside the injunction, the landlord wants orders compelling the tenant to clear the Sh10.8 million it claims is outstanding or to let distress for rent go ahead.
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Source: Capital FM
