New Law Gives Landlords Powers To Evict Tenants Over Rent Arrears For One Month

Parliament has once again passed into law the Landlord and Tenant Bill 2021 that gives powers to landlords to enter premises and confiscate property in case the tenant fails to pay rent within 30days.

Clause 30 of the revised bill stipulates; Failure to pay rent by tenant and claims for rent arrears and the default continues for more than 30days, the land shall be entitled to re-enter the premises and take possession thereof in the presence of the Area Local Council Officials and the Police.

Robert Kasolo (Iki Iki County) who also doubles as Vice Chairperson, Parliament’s Physical Infrastructure Committee that scrutunised the bill defended the clause arguing that a tenancy is primarily based on two things; occupation of the premises by the tenant against payment of rent to the landlord.

“If the tenant cannot pay rent, then he/she can’t continue occupying the premises indefinitely until an order of eviction is obtained. This will defeat the whole purpose of letting out premises,” said Kasolo.

It should be recalled that when Parliament passed the Landlord and Tenant Bill in 2019, President Museveni declined to append the signature to the legislation citing failure by Parliament to clearly define nuisance and residential premises thus prompting Parliament to reconsider the bill.

Parliament also approved Clause 12 that proposed provision of separate prepaid electricity meters on grounds that implementing of the provision wasn’t practicable and poses technical difficulties given the building requirements in terms of wiring the units of business premises.

Despite earlier expressing the rejection to have rent paid in dollars, the Parliament chickened out at in Clause 23 to allow the landlord and tenants agree upon which currency the rent should be paid with Kasolo remarking, “The law should uphold the freedom of parties to contract. It should be permissible for parties to mutually agree on the possibility of payment in Uganda shillings equivalent to the USD.”

Whereas Government had proposed in clause 27, for increment of rent to carry a three month notice, Parliament voted to reduce the period to just sixty days on grounds that the law should give the parties opportunity to agree on how rent should be increased especially with a long term tenancy.

Kasolo said, “The Committee proposes that the minimum period of notice for increase in rent should be amended to provide for a shorter period of sixty days.” The proposal was approved by MPs.

Government through the Ministry of Lands, Housing and Urban Development had proposed in clause 46(2) to outlaw unlawful eviction of tenants by landlords and provided for a fine of 250 currency points which is equivalent to Shs5M.

However, Parliament rejected the proposal with Kasolo arguing, “Two hundred and fifty currency points are standard yet the rent charged for different premises is different. The penalty imposed on the landlord as provided in the Landlord and Tenant Bill 2O21 is the equivalent of Shs5Million which may be too much or too little depending on the rent charged for the premise.”

Instead, Parliament approved a provision to have landlords who evict tenants illegally pay a compensation of three months worth rent paid.

Parliament also voted to delete clause 48 that barred landlords from subjecting tenants to annoyance on grounds that the proposal presupposes that only landlords can annoy yet tenant too could subject the landlord to annoyance making the provision ambiguous.

Legislators also approved Clause 50 of the bill to give powers to the landlord of entry of rented premises by Landlord on grounds that situations of emergency could arise and that such situations warrant the landlord undisputed entry into the rented premises to mitigate possible damage to the property in such disasters as fire and flooding.