Zomba-based High Court Judge Redson Kapindu has as ruled in favour of the Malawi Housing Corporation (MHC) in a case which its tenants obtained an injunction, restraining the corporation from effecting rental hikes.
MHC planned to increase its rentals in July with an average of 48 percent but on August 30 this year, the court granted the tenants leave to apply for judicial review, and the court, as a consequential interlocutory relief, also granted them an order of stay of the decision by the corporation to increase rentals with effect from September 1.
The dismissed arguments the tenants made on the premise that the MHC Act does not permit the corporation to make profits.
MHC director of administration and corporate affairs James Kaphale described the ruling as fair.
He said with the court determination, it has given the corporation powers to now go full throttle in implementing the rental hikes which were initially pegged at 48 percent.
“As Malawi Housing Corporation, we are happy that the court has dismissed the tenants, both on the injunction and the judicial review. This will enable us to implement the rental adjustments as earlier communicated to our tenants in Juky 2017,” Kaphale told Nyasa Times.
Spokesperson for the tenants Goodnews Mphande said the High Court has provided that “whenever we are ready on the matter, we can go back,” saying they want to consult with the lawyer and advised on the way forward.
Boasting of about 6 000 housing units nationwide, MHC is a statutory body established by an Act of Parliament in 1964 and is wholly owned by the Malawi Government.