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Article 25;Universal Declaration of Human Rights, G.A. res. 217A (III), U.N. Doc A/810 at 71
(1948)
2
Governing Informal Settlements: On Whose Terms Charles A. Khamala: Lecturer Kabarak
University School of Law, Ph. D. Candidate in Law (Criminal Sciences) (Universit de Pau et des
Pays de l'Adour) LL.M. (London) LL. B. (Nairobi); Advocate of the High Court of Kenya,
chalekha@yahoo.co.uk
3
2) The Valuation section: inspects and assesses dwelling premises so as to supply the
Tribunal with necessary for the determination of Standard Rents
3) The Inspectorate section: receives tenancy complaints, upon which the necessary
investigations can be carried out
4) The Process section: serves all court documents including summons, hearing notices,
notices to quit and court orders
5) The Registry: documents and case files are stored here. Various applications are also
filed in the Registry.
There are 10 fully-fledged stations of the Rent Tribunal countywide. All these stations are
presided over by advocates of the High Court. They are:
1) Nairobi Rent Tribunal: serves the Nairobi, Kiambu, Machakos, Makueni, Kajiado,
Maragua and Thika regions.
2) Mombasa Rent Tribunal: serves the Mombasa, Kwale, Malindi, Taita Taveta, Tana River
and Kilifi regions.
3) Kisumu Rent Tribunal: serves the Kisumu, Siaya, Nyamira, Rachuonyo, Kisii, Homabay,
Suba, Kuria and Migori areas.
4) Nakuru Rent Tribunal: serves the Nakuru, Baringo, Narok, Kericho, Samburu, Koibatek,
Eldama-Ravine, Bomet and Trans-Mara areas.
5) Nyeri Rent Tribunal: serves the Nyeri, Muranga, Kirinyaga, Nyandarua and Laikipia
areas.
6) Kakamega Rent Tribunal: serves the Kakamega, Busia, Bungoma, Teso, Lugari, Vihiga,
Butere/Mumias and Mt. Elgon areas.
7) Eldoret Rent Tribunal: serves the Uasin Gishu, West Pokot, Turkana, Elgeyo, Nandi,
Trans Nzoia and Marakwet areas.
8) Embu Rent Tribunals: serves the Embu, Meru, Kitui, Isiolo, Marsabit, Nyambene,
Mbeere, Mwingi and Tharaka Nithi areas.
9) Garissa Rent Tribunal: serves the Garisssa, Wajir and Mandera areas.
10) Lamu Rent Tribunal: serves the Lamu area.
The Cabinet Secretary by notice in the Gazette has the mandate to appoint a Chairman and
Deputy Chairman of the tribunal. 8To be qualified for either of these positions, one has to have
held qualifications specified in paragraphs (a), (b), (c) and (d) of subsection (1) of Section 12 of
the Advocates Act for a period of not less than 5 years.9 These provisions are however
contained in section 13 of the existing Advocates Act. They are:
1) A person shall be duly qualified ifa) Having passed the relevant examinations of any recognized university in Kenya
he holds, or has become eligible for the conferment of, a degree in law of that
university; or
b) Having passed the relevant examinations of such university, university college or
other institution as the Council of Legal Education may from time to time
approve, he holds, or has become eligible for conferment of, a degree in law in
the grant of that university, university college or institution which the Council
may in each particular case approve; and thereafter both
i. he has attended as a pupil and received from an advocate
of such class as may be prescribed, instruction in the proper
business, practice and employment of an advocate, and has
attended such course or tuition as may be prescribed for a
period which in the aggregate including such instruction,
does not exceed eighteen months; and
ii. (ii) he has passed such examinations as the Council of Legal
Education may prescribe; or
c) He possesses any other qualifications which are acceptable to and
recognized by the Council of Legal Education.
d) He is an advocate of the High Court of Uganda or the High Court of Tanzania
The above are however not the only members of the Tribunal. The Minister also has a
mandate, through a notice in the Gazette, to appoint a panel of members of any number as
he may think fit for each tribunal.10
10
tenant includes a sub-tenant and any person from time to time deriving title under the
original tenant, and the widow of a tenant who was residing with him at the time of his death,
or where a tenant leaves no widow or is a woman, such member of the tenants family so
residing as may be determined by the court not withstanding that the rights under the tenancy
may have passed, on the tenants death, to some other person.
service tenancy a letting by the landlord to an employee in connexion with his employment
dwelling house any house or part of a house or room used as a dwelling place, or place of
residence and includes the site of the house and the garden and other lands and buildings let
therewith, and not as a separate entity or source of profit
standard rent is the fair rent assessed by the Rent Tribunal in accordance with the Rent
Restriction Act.
tribunal means a Rent Tribunal established under section 4 and, in relation to any particular
premises, means the Rent Tribunal having jurisdiction in the area wherein those premises are
situated
composite tenancy means a tenancy comprising more than one dwelling-house where the
tenancy is expressed to be in respect of, or where a single rent is expressed to be payable in
respect of, all those dwelling-houses
Premises means a dwelling-house to which this Act applies
excepted dwelling- house dwelling douses which are the property of and let to the tenant by
the Government, Kenya Railways, the Kenya Ports Authority, The Kenya Posts and
Telecommunications Corporation or a Local Authority
FUNCTIONS OF THE TRIBUNAL
The Actual Exercise of functions by the Tribunal:
In the exercise of its functions under the Rent Restrictions Act, a tribunal shall be presided over
by the Chairman or Deputy Chairman of the tribunal and shall consist of the person so presiding
and two members selected by the Permanent Secretary11 to the Ministry from the panel of
members appointed under subsection (4) by the Minister.12 This constitutes a full sitting.
11
12
However, in some instances, a full sitting as mentioned above may not be possible where
members of the panel are unavailable. In such cases, the jurisdiction of the tribunal may be
exercised by the Chairman or Deputy Chairman sitting either with one such member or alone.13
The tribunal may at any given time be presided over by a Chairman or Deputy Chairman,
however, save in the exercise of its power under Section 5 (1) (a)14, the jurisdiction of the
tribunal presided over by a Deputy Chairman shall be limited to cases in which the standard
rent of the premises in question does not exceed Kshs. 1500.15 The determination of matters by
the Tribunal is usually hinged on the majority vote of the persons constituting the Tribunal at
the time.16
The Chairman on the other hand, acting alone, has jurisdiction to deal with all interlocutory
applications which are not of such nature as to effect a decision in any matter which is in issue
between the parties.17
Functions of the Tribunal:
The Act at Section 5 lays down the functions and powers of this Tribunal. These include:
1. Resolve disputes between landlords and tenants of controlled tenancies by establishing
the facts of each case and then applying the relevant legal rules to decide what the
statutory rights and entitlements of the aggrieved actually are. At times it may settle
disputes between tenants, this may be in the determination of charges to be
apportioned between tenants who enjoy services in common, for example water,
conservancy, sweepers and watchmen.
2. The Tribunal has a mandate to fix rent payable in accordance with justice and apportion
amounts of service payable.18
3. The Tribunal has power to determine the rent payable for different premises included
in one composite tenancy. The principle of standard has the objective of ensuring that a
fair and economic rent is given to the landlord while guaranteeing the security of tenure
in his rented premises. In so doing, the Rent Tribunal balances the interests of landlords
and those of tenants. This has a twofold effect:
a) Creating an environment that ensures continued investment in low-income
houses by investors.
13
Ibid.
To assess the standard rent of any premises either on application of any person interested or of its own
motion
15
Ibid, note 11, Section 4(6)
16
Ibid, Section 4(7)
17
Ibid, Section 4(8)
18
Ibid, Section 5(b)
14
20
[1974] EA 465
Ibid, at note 14
21
22
23
terminated before increase of rent can be recovered under the RRA. A recovery order for
arrears and mesne profits may accompany an order for vacant possession. These powers
safeguard the tenants protection against arbitrary increases and provide security of tenure . 24
In summary, the Rent Restriction Tribunal has the mandate of restriction of the increase of rent,
the right of possession, extraction of premiums and fixing standard rent in relation to dwelling
houses; that is, hearing and determining disputes filed by landlords and tenants of residential
premises. 25
In many instances, landlord-tenant disputes mainly stem from the failure to honor duties,
responsibilities and promises by both landlords and tenants. For landlords, these may be failure
to conduct repairs on the property in question, which is a common grievance for many tenants,
while for tenants on the other hand; it could be their failure to pay up rent on a timely basis.
Such disputes could be resolved effectively by the Rent Tribunal upon the application of either
party. The Rent Restriction Act provides that premises with monthly rent not exceeding Kshs.
2,500 (US$34.57) as of January 1, 1981, are subject to the provisions of the Act and thus under
the jurisdiction of the Rent Tribunal. Coincidentally, such premises form the bulk of rentals for
informal housing units in the country, which are the largest portion of the rental market.26
The amount provided for in the Act has however been rendered obsolete by the passing of time
in many aspects. This Act was enacted in 1-10-1959, when the cost of living was quite low
compared to recent times. Kshs. 2500 at that time was probably a lot of money, unlike today
when it is almost impossible to get good living premises going at this rate. Premises going at
such rent may be found mostly in informal settlements that many citizens prefer to avoid.
To the aforementioned effect, proposals have been made to change this figure to Kshs. 1500027
to accommodate the changing times and put more tenants under the protection of the Act and
consequently under the umbrella of the Rent Tribunal. This proposal is however yet to be
effected.
24
Exit the Rentier State: Legislating to Provide Affordable and Secure Tenure in Kenya, Governing
Informal Settlements: On Whose Terms by Charles A. Khamala; 31 May 2011
25
26
TS03J - Task Force on Property and Housing I, 6193 ; Collins Kowuor; Controlled Tenancy: A curse or
Blessing to Property Investment in Kenya
27
The Proposed Kenyan Landlord and Tenant Bill(2007)
The Tribunal has no jurisdiction to determine disputes relating to ownership of premises. This
was stated in the Civil Appeal case of Stephen Ronoh v Harun Cheboi.28 Here, the respondent
was the plaintiff in Rent Restriction Tribunal case number 12 of 2002. In his plaint, he averred
that he was the landlord and owner of the premises in question and the appellant was his
tenant at a monthly rent of Kshs 2000. He claimed against the appellant a sum of Kshs. 32000
being arrears in rent. The appellant denied that the respondent was the landlord and that he
owed him any arrears in rent. He further stated that he was the registered owner of the plot in
question. An issue arose as to the true owner of the disputed premises which the chairman of
the Tribunal gave judgment upon. The Court, on appeal, held that the chairman of the Tribunal
acted without jurisdiction when she held that the respondent is the rightful owner of the
structure irregardless of where the defendant may for the time being believe it stands and he is
the one who is entitled to rents from this premises. It went on to state that the mandate of the
Rent Restriction Tribunal is defined in Sections 5 and 6 of the Rent Restriction Act and the same
does not include the determination of property ownership.
THE SUBJECT OF RENT RESTRICTION
Rent restriction is basically a means of protecting tenants from high market rents that would
otherwise result from shortages of rented accommodation.29 Rent restriction prevents
landlords from raising rents haphazardly and thus in the process protect tenants from rapid
increases in rents. The tenant enjoys protection since the landlord cannot unilaterally increase
rent, without the authority of the Tribunal. However, not all tenants enjoy the protection of the
Tribunal.
Unprotected Tenants or Premises:
Protected tenants are, therefore, those who live in residential premises whose rent is below
Kshs. 2500, or the standard rent as stipulated by the Act. However, this protection is subject to
a number of exceptions. Tenants living in Government let premises do not fall under this
protection. Desai v Shah, is a classic example of this exception. Here, tenants paying KShs. 2500
per month did not automatically become protected tenants under the Act. The premises that
were the question of this matter fell under the umbrella of service tenancies.
Premises whose rent goes beyond Kshs 2500 are also out of the scope of protection of the Act
and Tribunal, whether such premises are furnished or unfurnished. To this effect, it is
noteworthy that premises may be let furnished or unfurnished. Thus in Sands v Mutual
28
29
(2006) eKLR
Julia Le Grand, Carol Propper & Carol Robinson; The Economics of Social Problems (London,
MacMillan Press (1976) 1982)
Benefits Ltd 30 Chanaan Singh J dismissed claims that a cooker and refrigerator are substantial
enough to constitute furnished lettings under the Rent Restriction Act.
Excepted dwelling houses which include property of and let to tenants by the Government, a
Local Authority, Kenya Railways, the Kenya Ports Authority or the Kenya Ports and
Telecommunications Corporation are also outside the scope of the Act and the Tribunal.
As stated earlier on in this paper, the Tribunal has power to fix rent to be paid in accordance to
justice and fairness.31 To this effect, it has been submitted that the process of determining
standard rent be guided by expert valuation reports. This view could be attributed to the fact
that such reports would in most instances be objective and accurate. The Rent Restriction
Tribunal may however, determine the standard rent to be of a figure it considers fair having
regard to the rents of premises of the same nature as the one in question.32 Independent
valuations conducted by the parties to the dispute more often than not contradict, as each
party seeks to attain a figure that fits their interests.
A tenant usually retains the right to request for a valuation. Here, the landlord may engage an
assessor to determine the value of the premises in question. This assessment may however be
disputed by the tenant.
A case that illustrates the above is that of Musa Ibrahim Osman v Leila Khamis Shikely33, an
appeal arising out of the judgment of the Rent Restriction Tribunal at Mombasa in respect of
assessment of rent of residential premises. The applicant had carried out an independent
assessment of the rent of the premises that amounted to Kshs 865 on the other hand the
Tribunals assessment officer made a different assessment, which the landlady relied upon, that
amounted to a sum of Kshs 4,750. The Tribunal made an average of the two valuations and set
a valuation amount at Kshs 2807 per month. The applicant on appeal contested that the
valuation process adopted by the tribunal was wrong. This method of assessment was said to
be wrong under section 9 (2) (a) of the Rent Restriction Act which states that rent should be
determined on the basis of open market rent. In the Tribunal case the tribunal had reached its
conclusion stating:
We have carefully considered the two reports. We are of the view that both reports are
too much tilted in favor of the parties. We have taken the difference between the two reports
30
31
32
33
divided by two and then added the result to the rent recommended by tenant valuer. The
approximate rent is Kshs 5000.we assess new rent at Kshs 5000 per month
The court, on appeal held that the Tribunal had the power to assess to do what it could to
determine fair rent to the landlord. In the circumstances, the court found that the Tribunal had
not failed to act within the law. In this regard the appeal was dismissed with costs to the
respondent.
Applications to the Tribunal:
The procedure for settling of disputes shall be prescribed by the Civil Procedure Act as far as
practicable except as prescribed in the Act, and shall be as follows:1. The applicant is to make a formal application as prescribed by the tribunal34 . Such an
application must be signed either by the party or their advocate. The applicant would
also be required to pay the prescribed fees.35
2. The notice of hearing should be served to all parties or their advocates and the date
fixed for hearing shall not be earlier than 10 days after the date of service. 36
3. The hearing shall be open to the public and the affected parties shall appear either in
person or by an advocate.37
Orders of the Tribunal have the same force of effect as a court order or decree. This extends to
the execution and observance of such orders. Any party, who fails to carry out an order by the
tribunal after the period of appeal lapses or the decision is upheld on appeal, is guilty of an
offence subject to a fine of not more than Kshs 2000 or imprisonment of 6months or less, or
both punishments.38
REVIEWS AND APPEALS
An aggrieved party may apply to the tribunal for a review of its decision.39 No appeal is however
possible from the decision of such a review.40
34
35
36
37
38
39
40
In instances where the Chairman of a tribunal forms an opinion that a question arising in any
proceedings before the Tribunal involves a substantial question of law, he may, adjourn the
proceedings and refer that question of law to the High Court for a decision on the matter. 41 The
Act goes on to state that a decision of the Tribunal is final and conclusive. 42 However there are
a number of exceptions set out in section 8 (2).
No further appeal(s) shall lie from the determination of an appeal on the above stated matters.
This was held in the case of H. Odongo & 6 others v. Loans and Savings Kenya Limited 43where
a second appeal to question the jurisdiction of the High Court to hear appeal matters against
the Rent Restriction Tribunal was quashed. It was held that the High Court has no jurisdiction to
review its appellate decisions under the Rent Restriction Act.
The appeal to the High Court should be made within 15 days of the making of the decision
which the applicant deems unfair or prejudicial.
The law requires that hearings of the Tribunal be conducted in public.44 This is in line with the
rules of natural justice as one would be assured of a fair and just hearing. Decisions can also
only be made by persons who have been part of the hearing from the onset. 45 This provision
would also ensure that there is fairness and justice in the hearing of the matter.
In Rent Restriction Tribunal v Mayfair Bakeries Limited46, an application or an order of
certiorari was made after the tribunal acted in excess of its powers by estimating the cost of
repairs payable for the premises in question. Such a power would have to be expressly
conferred on the Tribunal by statute. In this instance the tribunal had no such powers.
41
42
43
44
45
46
The Rent Restriction Act also stipulates that for a member to participate in a decision of the
tribunal, the individual must have been present throughout the entire hearing.47 If a member
participates in a decision before the tribunal without being present through the entire session
when the matter was being heard, a party to the proceedings may seek review of the decision.
A notice of the hearing shall be served by the Tribunal on the parties or their advocates; and
the date of hearing shall be fixed not to be earlier than10 days from the date of service of the
notice of hearing. 48 This provision is set to allow all the parties to prepare adequately for the
proceedings, and are thus in line with the requirements of natural justice and fair hearing.
47
48
Ibid, section 6