M-Wakili

Ask a lawyer:
In the event that the landlord /agent refused to refund tenant's security deposit despite a written tenancy termination letter, what action should the tenant take?

Table of Contents

  1. Introduction

  2. Legal Framework Governing Security Deposits in Kenya

  3. Steps to Take When a Landlord Refuses to Refund a Security Deposit

    1. Review the Tenancy Agreement

    2. Document the Condition of the Property

    3. Send a Formal Demand Letter

    4. Seek Mediation

    5. File a Complaint with the Rent Restriction Tribunal

    6. Pursue Legal Action in Court

  4. Conclusion

  5. Sources

1. Introduction

In Kenya, the relationship between landlords and tenants is governed by various laws and regulations, including the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, the Rent Restriction Act, and the Land Act. One common issue that arises in this relationship is the refund of security deposits. When a landlord or agent refuses to refund a tenant's security deposit despite a written tenancy termination letter, the tenant has several legal avenues to pursue.

2. Legal Framework Governing Security Deposits in Kenya

The legal framework governing security deposits in Kenya is primarily outlined in the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act and the Rent Restriction Act. These laws provide guidelines on the rights and obligations of both landlords and tenants, including the handling of security deposits.

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act: This Act regulates the relationship between landlords and tenants in commercial properties. It provides for the establishment of the Business Premises Rent Tribunal, which handles disputes between landlords and tenants.

  • Rent Restriction Act: This Act applies to residential properties with a monthly rent of up to Ksh 2,500. It establishes the Rent Restriction Tribunal, which adjudicates disputes between landlords and tenants.

3. Steps to Take When a Landlord Refuses to Refund a Security Deposit

3.1 Review the Tenancy Agreement

The first step a tenant should take is to review the tenancy agreement. The agreement should outline the terms and conditions regarding the security deposit, including the circumstances under which the deposit may be withheld. It is essential to understand these terms to determine if the landlord's refusal to refund the deposit is justified.

3.2 Document the Condition of the Property

Before vacating the property, the tenant should document the condition of the property. This can be done by taking photographs or videos and making a detailed inventory of the property's condition. This documentation will serve as evidence in case the landlord claims that the deposit is being withheld due to damages.

3.3 Send a Formal Demand Letter

If the landlord refuses to refund the deposit, the tenant should send a formal demand letter. The letter should:

  • State the amount of the security deposit.

  • Reference the tenancy agreement and the termination letter.

  • Provide evidence of the property's condition.

  • Request the refund of the deposit within a specified period (e.g., 14 days).

3.4 Seek Mediation

If the landlord does not respond to the demand letter, the tenant can seek mediation. Mediation is a voluntary process where a neutral third party helps the landlord and tenant reach a mutually acceptable resolution. Mediation can be facilitated by organizations such as the Kenya National Commission on Human Rights (KNCHR) or the Rent Restriction Tribunal.

3.5 File a Complaint with the Rent Restriction Tribunal

If mediation fails, the tenant can file a complaint with the Rent Restriction Tribunal. The Tribunal has the authority to hear and determine disputes between landlords and tenants, including issues related to security deposits. The tenant will need to provide evidence, such as the tenancy agreement, termination letter, and documentation of the property's condition.

3.6 Pursue Legal Action in Court

As a last resort, the tenant can pursue legal action in court. The tenant can file a suit in the Small Claims Court or the Magistrate's Court, depending on the amount in dispute. The court will hear the case and make a determination based on the evidence presented. If the court rules in favor of the tenant, the landlord may be ordered to refund the deposit and pay any associated legal costs.

4. Conclusion

In Kenya, tenants have several legal avenues to pursue when a landlord refuses to refund a security deposit. By reviewing the tenancy agreement, documenting the property's condition, sending a formal demand letter, seeking mediation, filing a complaint with the Rent Restriction Tribunal, and pursuing legal action in court, tenants can assert their rights and seek a resolution to the dispute.

5. Sources

  • Landlord and Tenant (Shops, Hotels and Catering Establishments) Act

  • Rent Restriction Act

  • Kenya National Commission on Human Rights (KNCHR)

  • Business Premises Rent Tribunal

  • Rent Restriction Tribunal

Answered by mwakili.com