This archive report was first published on 10 July 2020.
As the Covid-19 pandemic continues to affect the economy, a recent survey by the Kenya National Bureau of Statistics (KNBS) has revealed a significant increase in rent defaults across the country.
According to the survey, conducted in May, nearly 70 percent of households struggled to pay rent, with 31.6 percent of those interviewed paying rent on time compared to 41.7 percent in April.
Of those who defaulted, 37 percent were unable to pay rent, while 23 percent paid partially and 8.5 percent were hopeful of meeting their landlord's obligations.
The survey also found that 61 percent of those who were unable to pay rent blamed it on reduced income, while 25.7 percent attributed the challenges to temporary layoffs and closure of their businesses.
“The majority of the households that were unable to pay rent cited reduced income or earnings as the main reason,” said Treasury Secretary Ukur Yatani on Thursday.
The government's decision to close bars and schools in March to slow down the spread of the virus has had a significant impact on consumer spending, leading to job cuts and unpaid leave for workers.
As a result, the property market is expected to be further hurt due to low demand, with the number of households that got waivers or relief on their rent falling to 6.7 percent in the period from 8.7 percent in April.
