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Nairobi Landlord Moves Kenyans Online as He Reduces Rent Charges for Tenants

A Nairobi landlord has moved Kenyans on social media following his decision to reduce monthly rent for his tenants. In a letter dated October 17th, the property’s manager identified as Simon Ngugi asked occupants of Muhu Building on Naivasha Road in Dagoretti North, Nairobi to pay Sh2,000 less on rent beginning November 1st, 2019. Occupants have been paying Sh10,000 per month for each unit, meaning the same house will cost them Sh8,000 from this month. The letter also copied to the landlord John Roki, stated that the decision was made to retain current tenants and attract new ones due to “serious business fall.” “We have noted a serious business fall in recent months. We, therefore, extend our support to your business by reducing your rent,” Simon Ngugi noted. “Your new rent from November 1, 2019, is Ksh8, 000 down from Ksh10,000.” Speaking to K24 Digital, the building’s agent Paul Newton confirmed the authenticity of the letter. “Yes, the letter is genuine. We arrived at the decision after keenly scrutinizing how our tenants settled their rent arrears in the last few months. Honestly, we noticed they were struggling to raise the money, and, therefore, we had to reduce the monthly rental…

Kenyan landlords are pushing for a plan that seeks to have rent defaulters listed with credit reference bureaus (CRBs). The Urban Landlords and Tenants Association of Kenya (ULTAK) is seeking the Central Bank of Kenya’s authority to implement the proposal. If CBK approves the request, landlords will liaise with CRBs concerning their tenants’ monthly payments. ULTAK secretary-general Ephraim Murigo says the plan will ensure tenants who previously defaulted on rent payments find it hard to rent houses in other locations. Before signing lease agreements, landlords will demand a CRB clearance from those seeking to rent their houses. “Today, landlords resort to a number of crafty ways like locking up a tenant’s belongings to recover unpaid rent. Once our plan is implemented, it will become difficult for tenants to dodge their responsibilities, and hence landlords will have an easier time,” Says Murigo. “My association has come up with a formula whereby tenants will stop feeling like defaulting on rent is normal. We have approached credit reference bureaus to partner with them with an aim of listing all tenants who default on rent payment.” 2018 data by Transunion Credit Reference Bureau shows that more than 500,000 Kenyans have been blacklisted and thus…

An oversupply of prime residential properties in Nairobi is applying pressure that’s forcing buying prices and rents downwards, according to Knight Frank in its Kenya Market Update report for the second half of 2018, which could signal a cooling off in the cost of housing in the capital. Prime residential prices fell by 4.5% in 2018, compared to a 0.9% drop in 2017, as the segment tilted in favour of buyers. Rents in the top-end of the market also dropped by 1.3% in 2018, although a slower decline compared to the previous year’s 2.8%. Mr Ben Woodhams, Knight Frank Kenya Managing Director said sustained demand from expatriates and middle-to high-income earners keen on location and quality of houses helped reduce the decline in high-end residential rents. In the commercial property segment, he noted that the uptake of Grade A office space continued rapidly in the second half of 2018, although prime rents stagnated at Ksh130 ($1.3) per square foot per month owing to the current oversupply. “This report shows absorption of Grade A office space rose by 63 percent in the six months compared to the first half’s uptake,” he said. “Serviced office providers emerged as major takers, with this…