The government has made a final decision regarding rent waivers after an outcry from Kenyans who argue that since Covid-19 outbreak, life has become unbearable.
Speaking to The Standard, Treasury CS Ukur Yattani made it clear that the state would not compel landlords to waive rent but they were free to do it on their own.
The CS explained that in so doing, the real estate industry would slow down yet it served as a source of income for the landlords and other clusters of workers.
Yattani disclosed that the much the state could do in search of a solution would be to appeal to the landlords to ease the burden on tenants, some of whom have since lost their jobs after the dusk-dawn curfew was instituted.
"We decided that that (rent waiver) could destroy the industry," stated Yattani.
The CS confirmed that he had received numerous calls to intervene in the waiver efforts but noted that the state would not be compelled to ask landlords to forcefully waive the arrears.
Yattani noted that Kenyans had received other reliefs including taxation aimed at boosting their incomes. In the tax department, the state slashed value-added tax from 16 to 14 per cent as well as a total waiver of Pay As You Earn for employees earning below Ksh24,000.
"The net effect in terms of reduction of income meaning there will be more disposable income and therefore the power to purchase more. Assuming they retain their salaries, they can purchase more consumer products than ever before," he added
President Uhuru Kenyatta has, during a past address, thanked the handful of landlords who opted to waive rents for their tenants.
"I note with appreciation that some property owners have reduced monthly rent to help provide a roof over the head of our vulnerable brothers and sisters.
"In that regard, I urge others to emulate these acts of personal and financial sacrifice. This is a time for compassion and understanding," he stated.
According to statistics released by the Kenya National Bureau of Statistics, Over 4.6 million households countrywide are occupying rented houses with Nairobi leading the pack.
In Nairobi alone, 9 out of 10 families live in rentals and most of them spend as much as a third of their income on the cost.
