Proposed Landlord and Tenant Bill, 2021
This is notably the first attempt by the Government to control rent considering our economy has over the years resisted price controls in favour of economic liberalisation. Some of the salient provisions of the Bill are:
- Establishment of a Tribunal
The Bill provides for the establishment, composition and jurisdiction of the Landlord and Tenant tribunals which will have the powers to hear and determine all disputes between landlords and tenants including but not limited to determining, assessing, varying or fixing rent and/or service charge payable, award compensation and, where need be, to issue injunctions, make orders for recovery or possession and for payment of arrears of rent, mesne profits and service charge. - Evictions
The Bill deals with eviction orders and provides for the power of a tribunal in matters relating to eviction. Landlords shall no longer be able to evict or seize tenants’ belongings for non-payment of rent or any other breach of obligations without following due process. Landlords could now face up to six months in prison and/or be liable to pay a fine of up to two months’ rent for so doing. - Rent Control
The Bill provides for fair rent and gives the procedure for variations and increments and even decrement of rent on residential and commercial properties. Once passed, landlords shall not be at liberty to vary or increase rent at will and without justification. The Bill also provides for the alteration of terms and conditions in a tenancy. It further provides for keeping of a statement of rent paid, the keeping of a record of the payment of rent and condition of statutory tenancy. Rent increments have been limited to once a year for residential houses and once in two years for commercial premises. - Miscellaneous Provisions
The Bill provides for general matters relating to tenancies including provisions on notice of termination and the right to assign or sublet rental premises. The Bill also proposes the manner in which orders will be enforced, offences will be prosecuted, distress of rent and makes provision for the disposal of a tenant’s property upon the death of the tenant.
The Bill provides that any tenancy agreement that precludes its operation shall be deemed as void. This may affect the liberty of parties to contract outside the provisions of the Bill by imposing the provisions of the Act in all tenancy agreements.
The Bill is in its inception stages and is yet to be tabled before Parliament for the 1st Reading. Once it goes through the first reading, it will go through public participation where stakeholders will be invited to give their views and recommendations. As Hon. Amos Kimunya suggested, the government-backed Bill, if passed, will protect tenants while offering returns to real estate investors. We are keenly following the progression of this Bill through the various stages and will update you accordingly.
This alert is for information purposes only. Should you have any questions or need legal advice, please contact Mwangi Kibicho (mwangi@jkkibicho.co.ke) or Leah Muchiri (wmuchiri@jkkibicho.co.ke)
