In the wake of many a tenants’ nightmare in Kenya, the Landlord and Tenant Bill, 2021 (the “Bill”) may be a much awaited solution. The relationships between landlords and tenants have been uncordial sometimes owing to parties not keeping their end of the bargain, especially monetary obligations.
The Bill intends to consolidate all laws governing the renting of business and residential premises and the relationships between tenants and landlords. The Bill, should it be passed into law, will repeal the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, the Rent Restriction Act and the Distress for Rent Act. The Bill anticipates powers of landlords, privileges of the tenant and mutual responsibility with respect to the leased premises.
Powers of the landlord:
- Increase rent. The landlord must issue a 90-day notice to the tenant stating their intention and the new rent amount. Conversely, an increase without notice is void.
A landlord can only increase rent where they undertake to carry out capital expenditure, provide a new or additional service or having taken account of inflationary rates in the economy. Additionally, where the land rates have increased or have become payable since letting the premises. The Bill defines specific instances for usage of the capital expenditure and determinants of the inflationary rates. A tenant shall be deemed to agree to the increase in rent where they do not oppose it within thirty (30) days of receiving the notice.
It is noteworthy that rent can only be increased within twelve to twenty-four months for residential and business premises respectively after a previous increase or where the tenancy is a first for the tenant in the subject premises.
- Seize property in default of rent payment or where breach of an obligation by the tenant; and dispose of the same. However, they must follow due legal process.
Disposal of property is only permissible upon the death of the tenant or within sixty (60) days of the date of abandonment of the premises, and possessions therein, by the tenant whilst in arrears. Abandonment will not be construed where there are no rent arrears.
- Remove furniture or soft furnishings (linen, cutlery, kitchen utensils, glassware and crockery) from any leased furnished apartment. A landlord shall make an application to the Rent Tribunal to obtain consent to remove these items. Consequently, rent shall be reduced in proportion to the value of the furniture removed or as advised by the Rent Tribunal.
Rights of the Tenant:
- Right to sublease or assign their tenancy to another but with the consent of the landlord. Where the landlord unreasonably withholds their consent, the tenant can obtain orders to sublet or assign their tenancy from the Rent Tribunal and it shall have the same effect as if it were granted by the landlord. The Rent Tribunal may prescribe the terms of such assignment or sub-let.
- Right to services offered by the landlord. Where the landlord denies services to a tenant, they shall be committing an offence punishable by fine of up to Kshs. 10,000.00 or imprisonment for up to six (6) months. Services refer to the use of shared facilities such as water, power, security etc.
Both parties to a tenancy are bound the terms of the agreement. The terms allow either party to terminate the tenancy, having given notice to the other party. A landlord is entitled to termination in such instances including where the tenant has sublet or assigned without his consent, the tenancy period has lapsed or where default in payment of rent for three (3) consecutive months or the reason for the tenancy has been actualized.
A landlord may also terminate in good faith where they need the premises for personal use by self or their relations and specify the date of such termination. A termination notice can also be issued where possession is necessary for demolition, conversion or for extensive repairs or renovations. Specific to this, the termination date will be at least 120 days from the date of the landlord’s notice. In both instances, the tenant may consequently terminate after the landlord’s notice of intention to terminate.
The consolidation of these statutes promises an efficient, convenient and easy administration of tenancies in Kenya. Moreover, the Rent Tribunals established therein will operate in consonance of terms stipulated in respective statutes, a departure from the current minor differences elucidated in those established under each mentioned statute. The relationship between tenants and landlords is expected to be more orderly, should the Bill be passed into Law,
The Bill can be accessed here.
Please contact us at info@cfllegal.com should you require further information.
