This archive report was first published on 20 May 2020.
Kenya's housing sector, one of the fastest growing over the last decade, is facing a significant challenge due to the COVID-19 pandemic. According to a recent survey conducted by the Kenya National Bureau of Statistics (KNBS), a third of households failed to pay their April rent, with only 8.5 percent of landlords offering rent relief.
As of May 20, 2020, the Treasury revealed that the main reason for households' inability to pay rent was reduced earnings. Treasury Secretary Ukur Yatani stated that 'only eight percent of the respondents received rent waivers or relief in April, meaning that majority of landlords did not heed calls to reduce rent.'
President Uhuru Kenyatta had previously called on property owners to share the economic burden by reducing rental charges or agreeing to deferred payments. However, more than half of those who defaulted on rent cited reduced incomes, while 22.4 percent said they had been placed on unpaid leave.
MPs are currently debating the Pandemic Response and Management Bill, 2020, which provides for rent deferrals during the period of the coronavirus pandemic. The bill aims to help tenants who are struggling to pay rent due to the economic impact of the pandemic.
According to HassConsult, a quarterly property pricing index in Kenya, rents had dropped 0.7 percent in the three months to March, compared to a growth of 8.7 percent in a similar quarter last year. The consultancy firm expects deeper cuts in rents in the current quarter ending in June as the effects of coronavirus push tenants to pressure landlords to cut or defer home and office leasing costs.
