COURT OF APPEAL NULLIFIES RULING IN GIKOMBA BUSINESS CENTRE LEASE DISPUTE

The Court of Appeal has nullified a previous High Court ruling in the ongoing lease dispute between Gikomba Business Centre Ltd and the Pumwani Riyadha Mosque Committee, delivering a major legal victory for the mosque trustees.
In a judgment delivered on July 11, 2025, a three-judge appellate bench found that the High Court lacked jurisdiction to hear the dispute, as it involved land matters that fall under the Environment and Land Court (ELC). The case centered around a contested 35-year lease agreement signed in 2015 for Land Reference No. 209/19680, which Gikomba Business Centre claimed was breached by the mosque committee.
“The High Court did not have the jurisdiction to entertain the dispute as it revolved around the use and occupation of land, which is the preserve of the ELC,” ruled the court.
Although the Court of Appeal upheld an earlier finding that the mosque committee had waived its right to arbitration by participating in court proceedings, it emphasized that the lack of jurisdiction rendered the suit invalid.
The appellate court subsequently set aside the High Court’s ruling delivered on December 5, 2024, struck out the entire case filed by Gikomba Business Centre on October 8, 2024, and awarded costs to the mosque trustees.
Legal experts say the decision reinforces the importance of filing land-related cases in the correct forum and respecting jurisdictional boundaries established by the Constitution and statutes.
The ruling also serves as a cautionary tale for parties entering into commercial leases, reminding them to adhere to contractual dispute resolution mechanisms and to act swiftly when invoking arbitration clauses.