The Senate has asked the public to submit views on the Landlord and Tenant Bill, 2021 that if enacted into law will give the government power to cap rent increases on commercial and residential premises.
The National Assembly passed the Bill and forwarded it to the Senate for input as it affects functions of county governments.
Kenyans have 10 days to submit memoranda on a Bill that seeks to protect tenants from arbitrary changes by landlords.
The Senate has asked the public to submit views on the Landlord and Tenant Bill, 2021 that if enacted into law will give the government power to cap rent increases on commercial and residential premises.
The National Assembly passed the Bill and forwarded it to the Senate for input as it affects functions of county governments.
“Pursuant to provisions of Article 118 of the Constitution and Standing Order 140(5)…the committee on Roads and Transportation now invite interested members of the public to submit any representation that they may have on the Bill by way of written memoranda,” Jeremiah Nyegenye, the Clerk of the Senate said in a public notice.
The memo may be sent by email and must be received on or before Friday January 14, Mr Nyegenye said.
If the government-backed Bill becomes law, rent increases will be capped at the inflation rate of the preceding year.
This means rent increase this year will be capped at about 6 percent -- the average 2021 inflation--if the President signs the Bill into law.
Landlords will, however, have a window to breach the average inflation rate in case of sharp increases in rates paid counties and other State agencies or when they introduce an additional service to clients like security, garbage collection or home internet.
Building owners can also increase rent above the measure of cost of living if they make necessary upgrades to homes and office blocks.
Lease costs
The Bill also provides for cuts on rents when landlords withdraw some of the services that had prompted earlier increases in building lease costs.
The changes to the law will allow building owners to increase rent once a year for residential houses and once in two years for commercial premises, lowering the cost of doing business.
This marks the first attempt by the State to regulate rent in an economy that is largely based on liberal pricing of goods and services.
Real estate has been one of Kenya’s fastest growing sectors over the past decade, fueling a sharp increase in land and house prices.
Rent costs have surged in response to the demand with asking rents in Nairobi growing nearly threefold from 2007, prompting the State’s efforts to cap prices.
The proposed legal changes will also remove the restriction for a tribunal to hear disputes between landlords and tenants for rent that does not exceed Sh2,500 in a bid to protect more tenants.
