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Guide

How to write a tenancy agreement in Kenya

What the Landlord and Tenant Act 2021 requires, what every Kenya tenancy agreement must include, and the most common mistakes that make agreements unenforceable.

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The Landlord and Tenant Act 2021 significantly updated Kenya's tenancy law — it now explicitly covers residential premises (previously only commercial), caps security deposits at a reasonable amount, and establishes clearer procedures for termination. Most tenancy agreements in circulation pre-date this Act and are missing required provisions. An agreement that doesn't reflect current law can be challenged or rendered partially unenforceable, particularly around notice periods and deposit refund timelines.

Every Kenya tenancy agreement should specify: the exact property address, monthly rent and due date, payment method (M-Pesa details or bank account), security deposit amount and refund conditions, notice period (minimum 28 days recommended), which utilities are included, and whether subletting is permitted. Without these, the parties fall back on the Act's defaults, which may not match what was verbally agreed.

The most common mistake is a vague property description — "a house in Kileleshwa" is not enough. Include the house number, estate name, floor (for apartments), and any relevant landmarks. For commercial premises, include the square footage and any restrictions on signage or alterations. The contract generator follows similar principles of precision.

Both parties should sign in the presence of two witnesses, with each signatory retaining a copy. A signed tenancy agreement gives both landlord and tenant standing in a dispute — the Business Premises Rent Tribunal for commercial premises, and the courts for residential. Keep all rent payment receipts and communications in writing throughout the tenancy.

Frequently asked questions

Is a verbal tenancy agreement legally binding in Kenya?

Yes, a verbal tenancy agreement is legally binding in Kenya under the Law of Contract Act (Cap. 23). However, it is extremely difficult to enforce because there is no written record of the agreed terms — rent amount, notice period, deposit, and permitted use are all harder to prove. The Landlord and Tenant Act 2021 does not require tenancy agreements to be in writing, but a signed written agreement protects both parties significantly. Courts and the Rent Tribunal default to statutory minimums when terms cannot be proven, which may be less favourable than what was actually agreed.

How much security deposit can a landlord charge in Kenya?

There is no statutory cap on residential deposits under the Landlord and Tenant Act 2021, but one to two months' rent is standard practice. Charging more than three months' rent as a deposit would likely be challenged in dispute proceedings as unreasonable or unconscionable. The deposit must be refunded within 30 days of the end of the tenancy, with a written account of any deductions. Deductions are only lawful for unpaid rent or damage beyond normal wear and tear — general deterioration from ordinary use cannot be charged to the tenant.

What is the minimum notice period to end a tenancy in Kenya?

For monthly tenancies, the minimum notice period is one month, served in writing, to match the rental period. For fixed-term tenancies, neither party can terminate early without the other's consent unless the agreement includes a break clause. The Landlord and Tenant Act 2021 and industry practice recommend 28 days' written notice as the baseline. Notice should be dated and delivered in a provable way — WhatsApp message with read receipts, email, or personal delivery with acknowledgement. A landlord who terminates without giving proper notice owes the tenant compensation equivalent to the notice period.

Can a landlord increase rent during a tenancy in Kenya?

During a fixed-term tenancy, the landlord cannot increase rent unless the agreement explicitly provides for it and specifies the mechanism (for example, linked to CPI or a fixed percentage). For periodic (month-to-month) tenancies, the landlord must give reasonable notice of a rent increase — industry practice and case law suggest 3 months. Any rent increase must be communicated in writing. If the tenant believes the increase is unreasonable, they can seek mediation or apply to the Rent Tribunal for commercial premises.

What should I do if my landlord refuses to return my deposit?

Send a formal written demand letter specifying the amount, citing the 30-day return requirement, and giving 14 days to pay. Keep a copy with proof of delivery. If unpaid, file in the Small Claims Court (for amounts up to KES 1 million, civil procedure online) — the process is relatively quick and costs are low. For commercial premises, the Business Premises Rent Tribunal has jurisdiction. Present your tenancy agreement, move-in photos, payment receipts, and any move-out correspondence as evidence. A written tenancy agreement with a clear deposit clause is your strongest asset.

Does a tenancy agreement need to be stamped or witnessed in Kenya?

Witnessing is not legally required but strongly recommended — it proves the parties signed voluntarily and without duress. Stamp duty on leases under the Stamp Duty Act (Cap. 480): leases of less than 3 years attract no stamp duty; leases of 3 years or more attract 1% of the total rent payable over the term. Most residential and 1-year commercial leases are therefore stamp-duty exempt. If you choose to stamp it at the Kenya Revenue Authority, this also provides a further layer of authenticity.

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