Rent increment has always been a contentious issue between landlords and tenants in Kenya, particularly now that many people are grappling with a high cost of living.
The government though protects landlords from economic shocks by allowing them to increase rent every year or once in two years depending on the type of premises.
This provision of increasing rent annually is provided by the Landlord and Tenant Bill, 2021 which was passed by the National Assembly on November 25, 2021, and The Rent Restrictions Act, 2010.
“The landlord may increase rent once every 12 months for residential premises and once every 24 months for business premises,” the Bill states in part.
While the Bill gives the landlord leeway to increase rent, he must issue a written notice to the tenant at least 90 days prior to their intention to increase rent.
“Failure to do so renders the rent increase invalid. Where a tenant does not object to this notice within 30 days after receipt, they are deemed to have accepted the increase,” the Bill expounds.
The Bill indicates four reasons whereby a landlord is justified to increase rent one being the landlord incurring a capital expenditure.
The landlord can also increase rent to cushion himself against the inflation rate or where additional service is provided to the premises.
Lastly, rent can be increased annually when land rates payable increase or becomes chargeable.
The Rent Restrictions Act of 2010, limits land rates to water, light and/or conservancy charges.
The Act notes that redecoration or repairs, whether structural repairs or not do not form part of capital expenditure and cannot be used as a basis of rent increment.
Jason Katungi, a real estate agent speaking to Kenyans.co.ke revealed that most landlords increase rent through a flat rate of 5 per cent annually.
“The Rent Tribunal gives us permission to increase the rate every year depending on inflation and repairs we make on the rentals.
“While the rent increase varies depending on the house owner, majorly we increase by 5 per cent every year,” he told Kenyans.co.ke.
