Rubavu: Eritrean investor caught in land lease dispute considers lawsuit

An Eritrean investor whose business has been caught up in a commercial land lease dispute with the new owner of a plot located on the shores of Lake Kivu is considering taking the matter to the court of law after the two parties have failed to reach an agreement. Mediation efforts by Rubavu District authorities and the Private Sector Federation between Awtseana Welday Abraham, the owner of Lakeside View Lounge and Restaurant, and local businesswoman Belinda Umwali have yet to yield results. Umwali happens to be one of the owners of Saga Bay, a bar and restaurant establishment operating right next to Lake Side Lounge and Restaurant. ALSO READ: Why does mediation in resolving business disputes matter? The dispute centres on a 2024 lease agreement for the property on which Lakeside View operates. Abraham claims to have signed a 10-year lease agreement with one Eugene Sibomana, who later sold the land to Umwali, without informing the tenant when the contract was still valid. He added that he had continued to pay monthly rent to Sibomana. He claims that the sudden ownership change exposed him to pressure to either vacate the premises or accept what he describes as exorbitant rental amount demanded by the new owner. “There have been incidents involving the blocking of access to my premises. This affected the ability of customers and vehicles to enter the business and caused serious disruption to our operations,” he said. ALSO READ: Businesses encouraged to use mediation in disputes Abraham says he invested about $350,000 in establishing and renovating the business. About the commercial lease The lease agreement, signed in January 2024, states that Sibomana agreed to lease Abraham a commercial property located in Nengo Cell, Gisenyi Sector, on the shores of Lake Kivu, for a period of 10 years ending in 2034. The agreement provides for renewal upon mutual written consent by both parties. During the first four years, the monthly rent was set at Rwf1 million, payable quarterly in advance. According to a copy of the agreement seen by The New Times, the rent would increase by Rwf500,000 in five years, bringing the monthly rent to Rwf1.5 million. Article Six of the agreement provides that, in the event of a dispute, the parties should first seek an amicable settlement before resorting to court action. Meanwhile, the Private Sector Federation (PSF) in Rubavu previously mediated between the parties and advised Abraham to take Sibomana to court. “We advised them to take the case to court,” said Antoine Habarurema, Chairperson of the Private Sector Federation in Rubavu. “We asked him to sit down with Belinda, sign a new lease agreement, and take the former landlord to court. However, he did not want us to mediate between him and Belinda.” Abraham, however, said he initially preferred an administrative and peaceful solution. He maintained that he is prepared to pursue the matter in court if necessary. “My objective is not confrontation; it is to have my contractual rights and investment protected through the proper legal process,” he said. Mediation at district level During a second mediation meeting held at Rubavu District on August 17, Abraham said he would recognize Umwali as the legal new owner of the property. He asked that she recognize and honor the existing lease agreement and allow it to continue for the remaining period. Abraham proposed increasing the monthly rent from Rwf1 million to Rwf2 million to “resolve the business row amicably and maintain good relations with the new owners.” He further proposed that, after two and a half years, the rent could increase to Rwf2.5 million per month for the remaining period of the lease. “My position is that I first wanted to seek an administrative and peaceful solution through the relevant authorities because I believe the matter involves more than a private disagreement,” Abraham said. “However, if an amicable solution cannot be reached, I will consider pursuing the matter through the appropriate legal channels.” Umwali’s side Speaking to The New Times, Umwali denied allegations that she was attempting to force Abraham out of the property or deliberately harassing his business. She said that she and her brother bought the land from Sibomana and were shown a letter addressed to Abraham titled “Termination of Rental Agreement of Lakeside,” which they understood to mean that there were no outstanding issues concerning the property. However, The New Times observed that the copy of the letter it reviewed was not signed by Sibomana, who wrote it not, nor by Abraham to whom it was addressed. At the last meeting, district officials stated that since the document had not been signed by either Sibomana or Abraham, and since it was not an official document from any government authority, it could not by itself be considered sufficient evidence that the contract had been legally terminated. During the meeting, Umwali said she proposed a new lease agreement that would raise the monthly rent to Rwf4 million. She stated that she would not accept the agreement signed with Sibomana, and that the new agreement would be terminated after four years. She also alleged that Abraham had not paid rent for the past six months. “He owes us Rwf24 million. We keep paying the bank for a plot from which we are not getting any profit, while he continues operating his business on our land,” Umwali said. “We are facing losses because we bought the land after taking a bank loan.” According to Umwali, several mediation efforts have failed because Abraham has not agreed to sign a new lease agreement with the new owners. She said that if he does not accept their proposal, the matter could eventually be taken to court. “We do not want to force him to vacate because we do not have an immediate project for the land,” she said. “All we want is to have a contract with him so that he can continue operating his business.” Responding to allegations that construction materials had been deliberately placed to obstruct access to Lakeside View, Umwali said she had the right to use her land and that the materials were being stored there temporarily because of limited space at another construction site. Sibomana did not respond to requests for comment by The New Times. The meeting with district officials was concluded without a final agreement or mutually accepted resolution being reached between the parties.

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Rubavu: Eritrean investor caught in land lease dispute considers lawsuit