KENYA Law and Practice Contributed by: Anne Kinyanjui and Bonface Abuya, DLA Piper Africa, Kenya (IKM Advocates)
notice, which depends on the circumstances of the case. 6.20 Registration Requirements Short-term leases for two years or less without the option of renewal are not registrable. Long-term leases for more than two years are required to be registered under the LRA. Leases are required to comply with the formali - ties of a valid contract. The lease will also be subject to stamp duty, charged at the rate of 2% of the average annual rent. The stamped lease is lodged at the relevant land registry for regis - tration. An entry of the registered lease will be made on the title document and on the deed file of the property maintained by the land registry. The tenant meets the registration costs and the legal fees of its advocates and the landlord’s advocates. Long-term leases of a period of 21 years and above and which confer ownership are deemed to be transfers of title. Accordingly, stamp duty is payable at 2% of the value of the leased prem - ises if located in a rural area, or at 4% of the value of the leased premises if located in an urban area. Upon registration, a title is issued to the lessee, who bears the registration costs and the legal fees of its advocates and the landlord’s advocates. 6.21 Forced Eviction Where a lease is lawfully terminated by a landlord as discussed in 6.19 Right to Terminate a Lease , the tenant may be evicted by the issuance of an eviction notice of at least three months. Eviction must comply with the law, particularly Section 152G of the LA.
A tenant may apply to the ELC to challenge the eviction notice. For controlled tenancies, the tenant may chal - lenge the eviction notice at the BPRT. In this case, eviction will be subject to the BPRT’s orders. For commercial leases, the tenant may challenge the eviction notice in courts of law. In this case, eviction will be subject to the court’s orders. For leases in respect of dwelling houses of a standard rent below KES2,500, the tenant may challenge an eviction notice at the Rent Tribu - nal. In this case, eviction will be subject to the Tribunal’s orders. 6.22 Termination by a Third Party A lease can be terminated by the government in cases of compulsory acquisition; see 2.9 Con- demnation, Expropriation or Compulsory Pur- chase . 6.23 Remedies/Damages for Breach Restrictions on Damages There are no statutory limitations on damag - es that a landlord may collect in the event of a tenant breach. However, under the common law rules governing the award of damages and case law, general damages are at the discre - tion of the trial court. For special damages, the landlord would have to prove actual losses that have been incurred in monetary terms as a direct result of the tenant’s breach. Remedies The remedies available to a landlord are contrac - tually negotiated. Typically, the lease will provide for a security deposit that will be forfeited in the event of a default by the tenant.
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