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{
    "id": 1164170,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1164170/?format=api",
    "text_counter": 97,
    "type": "speech",
    "speaker_name": "Sen. Olekina",
    "speaker_title": "",
    "speaker": {
        "id": 407,
        "legal_name": "Ledama Olekina",
        "slug": "ledama-olekina"
    },
    "content": "If it is an insured scheme, then the agreement between the tenant and the landlord must clearly specify how that interest is going to be utilised or shared. Is it going to be 100 percent taken by the landlord and yet that money does not belong to him or her or is it going to be taken by the tenant who has decided to put that money aside so that it can protect in the event that something needs to be fixed in that house? Madam Temporary Speaker, I would have also hoped we would think of a situation where this tenancy agreement creates an escrow account. In terms of escrow account, it mostly relates to mortgage schemes. However, in this country, Kenya Revenue Authority (KRA) now requires a certain amount of money to be paid by the landlord as a tenancy income in taxes. It would be important for us to amend this legislation and factor in all those issues of the escrow account. If it was a tenancy agreement and you do not have to pay any taxes to KRA, then the escrow issue would not come into play. Today, I am aware that even in our Senate offices which are spread across the country, KRA requires us to hold 15 percent taxes on the rent that we pay to our landlords. In the event that, that money is withheld, because KRA assumes everyone is a tax agent, so long as you are collecting any money, you automatically become a tax agent whether you have signed an agreement with the KRA or not. It is time for us now when we are drafting legislation to take into consideration all these issues that will come in to dictate how the tenancy agreement should be run. I will be seeking either the Senate Majority Leader or the Committee Stage amendment and if they do not, then I will be bringing the amendments, one, to define how the tenancy deposit will be handled during the period of the deposit, whether it will be the Government protected scheme or insured account. The tenants need to know and understand their rights. There is one thing that makes me happy here. I think all the landlords ought to be alive to this fact that you cannot just evict a Kenyan living in your property without the consent of the Rent Tribunal in the event that that tenant has not paid rent. The tenant may have not paid for one month or could be having a tendency of delaying in paying rent; you then need to report that person to the Rent Tribunal - this has been brought up by this Bill - then you get consent from the tribunal to convict that person This Bill also talks about that duration where, if the eviction is not carried out within a stipulated period of time, I think it is 60 days, then it lapses. That person continues to stay in that house. It can be extended if the landlord goes back to the Rent Tribunal and seeks for an extension. These are issues the tenants and the landlords must be alive to. I would really request that as part of the tenancy agreement, the piece of legislation that deals with this like the Landlord and Tenancy; if it becomes an Act, should be attached to the tenancy agreement or; it should be cited in the terms and condition for rental so that the tenant and landlord are well aware of their rights. Madam Temporary Speaker, the other issue is in Section 31 which deals with the issue of subletting. The law as it is proposed sets as follows; Section 31 (1) “A tenant may with the consent of the landlord assign premises to another person. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}