Guide
Rent deposits in Kenya: what landlords should know
There is almost no law on residential deposits in Kenya, so the tenancy agreement does nearly all the work. Here is what to put in it.
At a glance
Deposits in short
| Legal limit | None. No Kenyan law caps a residential deposit or sets a deadline for refunding it. |
|---|---|
| Usual amount | One or two months' rent, sometimes with a separate deposit for water or electricity. |
| What governs it | The tenancy agreement. A dispute is a contract claim decided by the courts. |
| Refund timing | Whatever the agreement says. Thirty days after the tenant leaves is common practice, not a rule. |
| Disputes | A deposit claim of up to KES 1 million can go to the Small Claims Court. |
| New law | The Landlord and Tenant Bill 2021 lapsed in 2022. A petition to bring it back reached the Senate in June 2026. It is not law. |
What the law says
For ordinary homes, Kenyan law says almost nothing about deposits. No statute sets a maximum, a refund deadline or what may be deducted. The tenancy agreement decides all three, and a disagreement is settled as a contract claim in court.
The one exception is very cheap housing. The Rent Restriction Act covers homes let for KES 2,500 a month or less, and it bans charging a "premium" on top of the rent as a condition of the tenancy. Whether a refundable deposit counts as a premium has not been settled by the courts. Few lettings are that cheap today.
The Landlord and Tenant Bill 2021 would have changed this, including requiring receipts for deductions. It passed the National Assembly but lapsed in the Senate in 2022. A petition to reintroduce it was reported to the Senate on 10 June 2026. Until a new law passes, the agreement is what counts.
What to put in the agreement
- The amount, and whether there are separate deposits for water, electricity or keys.
- What it covers: damage beyond fair wear and tear, unpaid rent, unpaid bills, lost keys.
- Whether it can be used as the last month's rent. Usually it cannot. Saying so avoids the tenant who stops paying in their final month. If one does, see what you can do about rent arrears.
- How it is returned, and within how many days of the keys coming back.
- How deductions are worked out: from a move-out inspection compared with the move-in one, with receipts or quotes for the work.
At move-in and move-out
Most deposit disputes come down to what the unit looked like on the first day. Inspect it with the tenant when they move in, take dated photos of each room, and have both of you sign the record. Do the same when they leave. A deduction backed by two inspections and a receipt is hard to argue with. The Inspections app records both, with photos, for the tenant to sign.
Tell the tenant what you plan to deduct, with the reasons, before you refund the rest. Agreeing it with them first is quicker than defending it in the Small Claims Court, which hears claims of up to KES 1 million.
Keeping the deposit separate
A deposit is the tenant's money until it is used or returned. Treat it in your books as money you owe, not income. That way it is still there when the tenant leaves, and it is not counted as rent for tax.
PropertyView records a deposit as a liability when it is paid. When a tenant gives notice, you record the move-out inspection with its photos and send the tenant a proposed set of deductions. Your accounts change only once the tenant accepts it. The refund then goes out and the deposit balance clears.
Checked against the Land Act 2012, the Distress for Rent Act, the Rent Restriction Act and the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act on 18 October 2026. This is a plain-language summary, not legal advice. For a dispute, speak to an advocate.
Questions
Common questions
How much deposit can a landlord charge in Kenya?
There is no legal limit for ordinary residential lettings. One or two months' rent is usual.
How long does a landlord have to return a deposit?
No law sets a deadline. The tenancy agreement does. Thirty days after the tenant leaves is common practice.
Can a tenant use the deposit as the last month's rent?
Only if the agreement allows it. Most agreements say the deposit cannot be used as rent.
Where does a tenant go if a deposit is not returned?
A claim of up to KES 1 million can go to the Small Claims Court, which is quicker and cheaper than the ordinary courts.
Keep deposits out of the rent
Record each deposit as money held for the tenant, and settle it with them when they leave.