KENYA Law and Practice Contributed by: Anne Kinyanjui and Bonface Abuya, DLA Piper Africa, Kenya (IKM Advocates)
deemed to be a periodic lease pursuant to Sec - tion 57 (1) (a) of the LA. In this case, the term of the periodic lease will be the period by reference to which rent is paid. Finally, where the lease is terminated or the term lapses and the landlord accepts rent and allows the tenant to occupy the premises for at least two subsequent months, a periodic lease from month to month is deemed to have come into force, pursuant to Section 60 (2) of the LA. Maintenance and Repair Provisions Sections 65 (1) (c) and (d) of the LA impose an obligation on landlords to keep the exterior parts of leased premises in a proper state of repair, and to ensure dwelling houses are fit for human habitation. Sections 66 (1) (c) and (e) of the LA impose an obligation on tenants to keep the interior parts of leased premises and boundary marks of land in a reasonable state of repair. Tenants are also required to yield up the leased premises in the same condition they were in when the term of the lease began (subject to fair wear and tear). The parties can agree to further terms. Frequency of Rent Payments The law does not regulate the frequency of rent payments, which is contractually agreed by the parties. 6.5 Rent Variation The law does not regulate rent variation, except in the case of commercial leases governed by the LTA, which sets out elaborate notice require - ments and allows the tenant to challenge the proposed variation before the Business Prem - ises Rent Tribunal (BPRT).
If the lease is silent on rent variation, this can only be done by agreement between the parties. 6.6 Determination of New Rent Rent is varied based on a pre-agreed escala - tion rate indicated in the lease. The frequency of escalation is also indicated in the lease. 6.7 Payment of VAT VAT is payable on rental income from non- residential premises at the rate of 16%. Rental income earned from the lease of residential premises is exempted from VAT payment under Part II of the First Schedule of the Value Added Tax Act 2013( “VAT Act” ). 6.8 Costs Payable by a Tenant at the Start of a Lease The tenant bears the following costs: • the cost of fitting out the premises; • the security deposit on the rent and the ser - vice charge; • the initial service charge; • the stamp duty payable on the lease, which is charged at 2% of the average annual rent; • nominal fees for registration of the lease; and • the tenant’s legal fees and the landlord’s legal fees (as may be agreed by the parties). 6.9 Payment of Maintenance and Repair The maintenance and repair costs for common areas are paid by the landlord or the manage - ment company from the service charge paid by the tenants. These costs are apportioned amongst the tenants. 6.10 Payment of Utilities and Telecommunications Each tenant bears the cost of installing individ - ual utility meters (water, electricity, etc) for the
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