How to Write a Tenancy Agreement in Kenya (2026): Landlord and Tenant Act Requirements

A valid tenancy agreement in Kenya must identify the parties, describe the premises, set the rent and payment date, state the tenancy duration, and spell out each party's obligations. For commercial and hospitality tenancies covered by the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301), additional statutory protections apply that override anything the parties try to contract out of.

Which law governs your tenancy

Kenya draws a sharp line between two categories of tenancy, and the rules are different enough that mixing them up creates real legal exposure.

Residential tenancies fall under the Rent Restriction Act (Cap 296) for lower-value properties. The Act empowers the Rent Restriction Tribunal to fix a "standard rent" and can void any premium or excess charged above it. Coverage is determined by rent level, not construction date — the Act's controlled tenancy threshold is very low in nominal terms (reflecting a 1981 base), so in practice a large proportion of modern residential lets fall outside the Act. Landlords should take legal advice to confirm whether a specific letting is covered before drafting.

Commercial, retail, hotel and catering tenancies are governed by the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301). This statute applies to any tenancy of a shop, hotel, or catering establishment in a municipality, township, or trading centre. Cap 301 confers security of tenure on qualifying tenants: a landlord cannot simply end a controlled tenancy by serving an ordinary notice to quit. The Business Premises Rent Tribunal (BPRT) has jurisdiction to hear disputes about rent, termination, and goodwill compensation under the Act.

A third layer — the Land Act (Cap 280) and the Land Registration Act (Cap 300) — governs leases exceeding two years, which must be registered with the relevant land registry to be enforceable against third parties.

Core clauses every agreement needs

Whether the tenancy is residential or commercial, certain provisions are non-negotiable for a well-drafted agreement.

Party identification. Full legal names, ID or passport numbers, and physical addresses for both landlord and tenant. If the landlord holds title through a company or trust, the registered name and PIN should appear. Missing or vague party details are the most common reason agreements fall apart in tribunal proceedings.

Property description. The LR number or plot number, the physical address, and a brief description of the premises — including any fixtures, appliances, or parking included in the letting. For commercial premises covered by Cap 301, the exact floor area can matter to rent review calculations.

Rent, deposit, and payment mechanics. State the monthly rent in Kenya Shillings, the due date (e.g., first calendar day of each month), the accepted payment method, and any late-payment charge. The deposit should be specified as a separate figure — typically one to three months' rent — and the agreement should state whether it attracts interest and when it must be returned after vacation.

Term and commencement. Specify whether this is a fixed-term tenancy, a periodic (month-to-month) tenancy, or a tenancy at will. The commencement date must be stated clearly. Fixed-term agreements automatically expire; periodic tenancies require a notice to quit to end them.

Permitted use. For commercial premises this is especially important. Cap 301 Section 2 defines "shop" broadly, but the permitted use clause determines whether a subletting or change of business activity triggers a breach.

Repair and maintenance obligations. Kenyan common law places structural repairs on the landlord unless the agreement says otherwise. Internal decorative repairs and minor maintenance are typically the tenant's responsibility. The agreement should set this out in enough detail to avoid disputes over who replaces a broken water heater versus who fixes a cracked roof beam.

Access for inspection. The landlord's right to enter for inspection, with reasonable notice — at minimum 24 hours except in emergencies — should be written in. Landlords who enter without notice expose themselves to claims of harassment under the Protection Against Domestic Violence Act for residential premises, and to injunction applications generally.

Notice periods under Cap 301 for controlled tenancies

Under the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301), a landlord wishing to recover possession must serve a notice in the prescribed form under the Act. The minimum notice period for a controlled tenancy is two months, served in writing, specifying the grounds for recovery.

Cap 301 Section 7 sets out the grounds on which a landlord may recover possession of a controlled tenancy, including: the tenant's failure to pay rent, breach of a material term, the landlord genuinely requiring the premises for their own occupation or that of a close family member, or intended demolition or reconstruction. The tribunal must be satisfied that the ground is genuine; a landlord who pleads personal occupation and then re-lets within two years of recovery risks a compensation claim.

For residential tenancies outside Cap 301, the notice period depends on how rent is paid. Monthly periodic tenants are entitled to one clear calendar month's notice to quit, served before the rent day. A week-to-week tenancy requires one week's notice. Notice must be in writing to be enforceable in the Rent Restriction Tribunal.

Controlled tenancies: what the landlord cannot do

Section 4 of Cap 301 renders any agreement, condition, or arrangement void to the extent it purports to exclude or restrict the tenant's statutory rights. Practically, this means:

• A landlord cannot charge a premium (key money) to grant or renew a controlled tenancy.
• A landlord cannot require the tenant to accept a tenancy at a higher rent than the controlled rent as a condition of any renewal or continuance.
• A rent review clause in a controlled tenancy that bypasses the BPRT is unenforceable.

Tenants under Cap 301 also have a statutory right to compensation for goodwill in some circumstances when a landlord recovers possession for their own use. Drafting a commercial lease without understanding this exposure has caught more than one landlord off guard when the tenant files before the BPRT after vacation.

Practical drafting tips

Use a clear rent review mechanism. For tenancies of more than one year, omitting a rent review clause invites a dispute. State the review cycle (annual is standard), the basis of review (market rent, CPI, or a fixed percentage), and the procedure if the parties cannot agree. In a controlled tenancy, the BPRT has power to set a reasonable rent on application under Cap 301 Section 9.

Attach an inventory. A signed inventory and condition report at commencement prevents the security-deposit dispute that almost every tenancy ends with. Photographs with timestamps, signed by both parties, carry the most weight before the tribunal.

Stamp duty. Under the Stamp Duty Act (Cap 480), a lease of immovable property must be stamped within 30 days of execution. The rate for a lease of three years or less is 1% of the annual rent; for leases exceeding three years, the rate is 2% of the annual rent. Unstamped leases are inadmissible as evidence in civil proceedings, which effectively makes them unenforceable.

Registration for longer leases. Any tenancy exceeding two years should be registered at the relevant land registry under the Land Registration Act (No. 3 of 2012). Short-term leases of less than two years are exempt from registration, but a longer unregistered lease binds only the immediate parties — a subsequent purchaser of the freehold takes free of the unregistered interest.

What to do if the other party refuses to sign

A written tenancy agreement is not strictly required for a periodic tenancy to exist in Kenya — conduct and part performance can establish the tenancy — but without writing, the precise terms become a matter of disputed oral evidence. The Rent Restriction Tribunal and the BPRT routinely hear cases where the only "agreement" is a series of rent receipts.

If a prospective tenant or landlord refuses to sign, that is itself a signal worth heeding before handing over keys or paying a deposit. A straightforward monthly tenancy agreement for Kenya sets out all the essential terms in plain English — rent, deposit, notice periods, and permitted use — in a format both parties can review in minutes.

Ending the tenancy

For periodic residential tenancies, either party may end the arrangement by serving the appropriate notice (one calendar month for monthly tenancies) before the rent day. The notice should be in writing, signed, and either delivered personally or sent by registered post to create a record.

For controlled commercial tenancies under Cap 301, the tenant who receives a notice to quit may apply to the BPRT within two months to contest it. During that period the tenancy continues. A landlord who changes the locks, withholds services, or otherwise interferes with the tenant's quiet enjoyment during this window risks an injunction and potential criminal liability under the Trespass Act.

After vacation, the landlord must return the deposit — less any agreed deductions for damage beyond fair wear and tear — within a reasonable period. "Reasonable" is fact-specific, but holding the deposit beyond 30 days without a written breakdown of deductions is likely to be treated as bad faith by any tribunal.

Keeping the agreement clear, properly stamped, and signed before any money changes hands is the single most effective step a landlord or tenant in Kenya can take to stay out of tribunal proceedings entirely.