This archive report was first published on 10 July 2020.
Kenya's property market is facing a significant challenge as the COVID-19 pandemic continues to affect households' ability to pay rent. According to a recent survey conducted by the Kenya National Bureau of Statistics (KNBS), nearly 70% of households struggled to pay their rent in May.
The survey, which was presented by Treasury Cabinet Secretary Ukur Yatani on July 9, 2020, revealed that 31.6% of households paid their rent on time in May, compared to 41.7% in April. The remaining households either defaulted on their rent or paid partially.
Of those who defaulted, 37% were unable to pay rent, while 23% paid partially and 8.5% hoped to meet their landlord's obligations in the future. The survey also found that 61% of households that were unable to pay rent cited reduced income as the main reason, while 25.7% attributed the challenges to temporary layoffs and closure of their businesses.
As the government continues to implement measures to slow down the spread of the virus, including closing bars and schools, the property market is expected to face further challenges. The rent defaults emerged in a period when office and homes lease costs eased in the first three months of the year, and the effects of the pandemic are expected to further hurt the property market due to low demand.
President Uhuru Kenyatta had earlier implored landlords to reduce rent to cushion Kenyans grappling with job losses, salary cuts, and unpaid leave. However, the number of households that received waivers or relief on their rent fell to 6.7% in May from 8.7% in April, as landlords shunned the government's calls to shield Kenyans from the coronavirus woes.
