Increasing rent can be a highly contentious affair especially in times of economic hardship. When most people are house hunting, rent is the number one reason they choose a house. So when the rent goes up from what they had initially planned for, it causes a strain on their budget. While this is true, landlords are also seeing an increase in utility charges and from time to time, they have to adjust rents to ensure they remain profitable at the end of the day. From this, you can already tell that rent increase is a touchy subject. In this guide, I will be explaining to you what the law says about rent increases, when they are legal and what to do if you feel the increase was unfairly done.
What the laws says about rent increases
The Kenyan law is very clear on rent increases and provides for a clear procedure of going about increasing rent. Unlike what happens in many estates, the process should not be random and only benefiting one side. Below are some of the factors that are considered for a rent hike to be legal;
1. Approval from rent restriction tribunal
The first thing is that the landlord must seek an assessment and approval from the tribunal. The rent restriction tribunal is a state body that is involved in disputes related to the tenant and landlord. The landlord should apply for an assessment of his property and get the go ahead needed to increase rents.
2. Increase must be justifiable
Rent increase cannot be random or without any backing. The landlord needs to validate why they are increasing rents. For instance;
- Increase in inflation affecting running costs like water
- Additional services brought in to benefit tenants
- An increase in property taxes
- Capital expenditures like adding cabro to the driveways
3. Written Notice
Any rent increase in Kenya must only come after a written notice has been issued by the landlord or agent. The law is clear that the period of notice should be within the 30 day – 90-day timeframe. This is to give tenants ample time to respond and adjust their budgets by either agreeing or disagreeing to the increase.
4. Mutually Agreed
A lawful rent increase must be agreed upon by both parties. It should not be at the expense of the tenant. That is why the law provides for a written notice period which is intended to allow the tenants to voice their concerns and settle them with the landlord before the period kicks in. Most tenants will go quiet and complain among themselves which typically doesn’t help the situation.
5. Can happen only ONCE a year
The law is also clear on the frequency of rent increases in the country. The landlord and tenant bill states that rent can only be increased ONCE every year. In my experience, rarely do Kenyan landlords increase rents more than once. In fact, data shows that most landlords will only increase rent once every 3-years. However, should your landlord increase rent more than once in a period of 12-months, then this is considered illegal.
Summary of what is legal and illegal
| What Is Legal | What Is Illegal |
| Obtaining approval from the Rent Restriction Tribunal. | Increasing rent without tribunal approval where required. |
| Increasing rent for valid reasons (inflation, taxes, improvements, added services). | Increasing rent without a valid or justifiable reason. |
| Giving tenants written notice of the increase. | Increasing rent without written notice. |
| Providing 30–90 days’ notice before the increase takes effect. | Giving less than 30 days’ notice or no notice at all. |
| Consulting tenants and allowing them to respond to the increase. | Imposing a rent increase without tenant engagement. |
| Increasing rent only once every 12 months. | Increasing rent more than once within 12 months. |
What to do if your rent goes up
- Make it known if you agree or disagree with the increase. Silence is always treated as compliance and once the notice date elapses, you can do nothing about it. You can voice your concerns directly or as a group to the landlord.
- If you disagree with the rent hike, write a ‘Letter of Objection’ within 30-days of receiving the notice. In the letter you can include reasons why the hike is unjustified and point back to the tenant agreement. I advise getting an advocate who is versed in property law draft it for you.
- If you feel that the increase was illegal or did not follow the procedure required, voice your concerns through the rent restriction tribunal. Bringing in an unbiased third-party will help you settle any issues with your landlord.
- Negotiate the increase or plan to move out. If your negotiations don’t go as planned, the best thing to do is to move out of the building and get a suitable rental unit that suits your budget. In most cases the amount of money you may spend on legal proceedings might be even more than the increase. Just weight what you stand to gain and loose and make the right decision.
