MPs support picture to cap hire increases at inflation rate

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Economy

Monday October 11 2021

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Parliament buildings in Nairobi. FILE PHOTO | NMG

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By JOHN MUTUA

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Summary

  • A Parliamentary committee has backed the manager’s push to cap hire increases on industrial and residential premises.
  • The Nationwide Assembly committee on Transport, Public Works and Housing authorised the Landlord and Tenant Invoice of 2021, which now awaits debate and passage by the important thing Condo.
  • Rent increases shall be capped at the inflation rate of the preceding yr and landlords will only be allowed to make extra adjustments to compensate for extra services.

A Parliamentary committee has backed the manager’s push to cap hire increases on industrial and residential premises, environment the stage for the passage of the legislation that seeks to present protection to tenants from arbitrary adjustments.

The Nationwide Assembly committee on Transport, Public Works and Housing authorised the Landlord and Tenant Invoice of 2021, which now awaits debate and passage by the important thing Condo.

Rent increases shall be capped at the inflation rate of the preceding yr and landlords will only be allowed to make extra adjustments to compensate for extra services or for upgrading the premises.

“The committee having regarded as the Landlord and Tenant Invoice of 2021, stakeholders’ feedback and the above observations recommends the Condo to scuttle the Invoice,” reads the committee’s file.

Changes to the legislation will enable building owners to enlarge hire as soon as a yr for residential homes and as soon as in two years for industrial premises, lowering the payment of doing alternate.

This marks the first attempt by the Train to management hire in an economy that is per liberal pricing of items and services rather then sign controls.

Steady property has been indubitably one of Kenya’s fastest increasing sectors over the final decade, fuelling a energetic enlarge in land and house costs, though the appreciation has cooled in the final three years.

Rent costs agree with surged basically based mostly on the demand with asking rents in Nairobi increasing simply about threefold from 2007, prompting the Train’s efforts to cap costs.

The proposed upright adjustments will furthermore seize away the restriction for a tribunal to listen to disputes between landlords and tenants for hire that would now not exceed Sh2,500 in a picture to present protection to more tenants.

Landlords and tenants who fail to adjust to rulings of the tribunal face a aesthetic of Sh200,000 or one yr in detention heart or both.

If the legislation is successfully handed, hire will join gas in the payment management regime.

Kenya has most in vogue to let market forces management the payment of items and services whatever the presence of a legislation that provides for capping of costs.

In 2011, Kenya handed a legislation that allowed the return to sign controls of critical commodities, twenty years after it used to be abandoned in favour of liberal pricing.

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