Habanos Lounge, a popular entertainment spot on Nairobi’s outskirts, is at the centre of a growing legal and financial dispute over alleged rent arrears, unpaid salaries, and claims of interference in debt-recovery efforts.
The establishment, operated by Taskim Hadanos Chill & Grill Ltd and associated with businessmen Morris Macharia Mbuthi and David Karigo Muthee, is facing pressure from both its landlord and former employees over money allegedly owed.
The dispute stems from claims that the lounge accumulated substantial rent arrears, prompting the landlord to initiate recovery proceedings.
According to parties familiar with the matter, auctioneers had previously been instructed to recover the debt before the dispute resurfaced, with fresh recovery efforts now linked to ongoing eviction proceedings.
The landlord is seeking to recover the outstanding rent through legal channels, a move that could ultimately see the business removed from the premises if the dispute is not resolved.
Habanos Lounge Workers Demand Salary Arrears
The rent dispute has been compounded by complaints from former employees who claim they still have not received salaries for services rendered while working at the establishment.
Several former workers allege they served the business for months before leaving without receiving their full wages.
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The claims involve workers from different departments, including waitresses, kitchen staff and security personnel.
Some of the former employees further allege they were dismissed after demanding payment of their salaries, accusations that have added another layer to the growing controversy surrounding the entertainment outlet.
The workers are now seeking payment of what they describe as long-overdue salary arrears, with some considering legal action to recover their dues.
Claims of Interference
The dispute has also attracted attention because of allegations surrounding efforts to recover the outstanding debts.
Sources involved in the matter claim that groups of men and armed police officers deployed at the premises frustrated auctioneers’ attempts to recover the alleged rent arrears.
The allegations further claim that individuals linked to influential circles tried to prevent the recovery exercise from proceeding.
The claims also link the dispute to George Ruto, the son of President William Ruto, although no evidence has been publicly produced linking him to the dispute and no court has made any finding on the allegations.
Sources further allege that personnel said to be attached to the police Quick Response Unit and individuals believed to have links to the National Intelligence Service were present during some of the recovery attempts.
The allegations have not been independently verified.
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The claims, however, have raised questions about whether private debt recovery processes can be executed without interference when powerful interests are alleged to be involved.
Previous Scrutiny
The latest rent and salary dispute facing Habanos Lounge is not the first controversy involving the popular entertainment joint along Northern Bypass near Kiambu Road.
The establishment has previously faced regulatory action over noise pollution complaints from residents living in nearby estates.
In April 2025, the National Environment Management Authority (NEMA) ordered the closure of the club, citing persistent noise complaints and its failure to comply with directives aimed at controlling noise pollution.
Residents had complained that loud music from the venue was affecting households in surrounding neighbourhoods.
The following month, the Nairobi City County Government, working alongside NEMA and other agencies, announced a separate closure, directing the establishment to install proper soundproofing measures before reopening.
Under Kenyan law, landlords may recover unpaid rent through auctioneers and court processes, while employees can pursue salary arrears through labour institutions and the courts.
The dispute has therefore placed Habanos Lounge at the centre of parallel claims by both creditors and former workers.
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