NAIROBI, Kenya, Aug 4 – Sinaloa Club & Restaurant is embroiled in a legal dispute with its landlord over an alleged Sh16.5 million rent debt, after a Nairobi court directed the tenant to file proof of rent payments before issuing further orders later this month.When the matter came up before the Milimani Commercial Court on Monday, the court directed Sinaloa Club to file evidence of rent payments made by close of business August 3, 2026. The court also ordered parties to file written submissions on the landlord’s application seeking to set aside interim orders of injunction which were obtained by the restaurant through material non-disclosure. The case will be mentioned on August 17, 2026, when the court is expected to issue further directions.The dispute is between Golden Embassy Limited, which operates Sinaloa Club & Restaurant, and its landlord, Joanne Muthoni Mwangi, together with Yunily Auctioneers, over alleged rent arrears and efforts to recover the outstanding amounts.According to court documents, the landlord claims the club owes Sh10.8 million in accumulated rent arrears. A further Sh5.7 million, being rent for August, September and October 2026, has since fallen due, bringing the amount in dispute to approximately Sh16.5 million, excluding any contractual penalties, interest and auctioneer’s charges.The landlord argues that Golden Embassy Limited fell into default after the first quarter of the lease and subsequently failed to honour rent obligations despite being granted temporary accommodation to switch from quarterly to monthly payments. Court filings state that the tenant allegedly stopped paying rent altogether after January 2026, prompting the issuance of demand notices before auctioneers were instructed to commence distress proceedings.The defendants further contend that several demand letters were issued on January 19, February 24 and March 10, 2026, before Yunily Auctioneers issued a proclamation notice on April 15 16 in a bid to recover the alleged arrears.Golden Embassy Limited has, however, challenged the landlord’s claims, maintaining that it has been paying rent and accusing the landlord of attempting to alter the terms of the commercial lease and unlawfully evict the business despite interim court orders issued in April. The company also disputes the amounts claimed and contests the contractual provision imposing a two per cent daily penalty on overdue rent.The landlord has applied to have the interim injunction set aside, arguing that it was obtained through material non-disclosure and misrepresentation regarding the status of the rent account. In the application, the landlord is also seeking orders compelling the tenant to settle the alleged Sh10.8 million in outstanding rent arrears or allow distress for rent to proceed.The court is expected to consider the parties’ written submissions and the tenant’s proof of rent payments before issuing further orders on August 17.