This archive report was first published on 20 April 2020.
On April 20, 2020, Nairobi Senator Johnson Sakaja's bill to protect vulnerable individuals during the COVID-19 pandemic was gazetted, allowing tenants to sign agreements with landlords over rent challenges.
The Pandemic Response and Management Bill 2020 provides a wide range of mitigation measures to safeguard those affected by the pandemic. The bill proposes that in the event of rent challenges, tenants can enter into an agreement with their landlords on how to meet their obligations at the end of the pandemic.
According to the bill, upon receipt of a notice, the contracting parties shall enter into an agreement on how the tenant shall meet their obligation at the end of the pandemic. The bill also states that employers shall not terminate a contract of service or dismiss or coerce an employee to take a salary cut.
Additionally, the Labour Cabinet Secretary shall develop measures to protect the employer and the employee during the pandemic. The bill further proposes that where a pandemic affects the economic or purchasing power of the public, the Treasury Cabinet Secretary may, with the approval of Parliament, introduce tax measures to cushion the affected persons for the duration.
Furthermore, the bill states that where citizens are not able to service their loans and mortgages, the individual borrower shall notify and enter into an agreement with the lending institution on how to make the payments after the pandemic. The Senate team also wants borrowers saved from the burden of paying penalties, with the Credit Reference Bureau (CRB) barred from listing those who default during the period.
Lenders shall not charge fees, interest, or any other penalty for non-payment or late payment of obligations during the pandemic period, as stated in the bill.
