House passes landlord & tenant bill, rejects rent in dollars

Parliament on Wednesday passed into law the Landlord and Tenant Bill 2018 rejecting an earlier plan to force tenants pay rent in US dollars.

The Physical Infrastructure Committee suggested omission of the proposal in the Landlord and Tenant Bill, stating that a landlord cannot increase rent beyond 10% annually.

Lands Minister Betty Amongi said that since inflation hasn’t increased beyond 1% the proposal should stay.

Amongi opposed the proposal in the Landlord and Tenant bill requiring security deposit of one month for residential premises and 3 months for commercial premises.

She said 3 months for commercial premises is high.

The Landlord and Tenant Bill, 2018 proposes that a Landlord must notify tenants about plans to increase rent in a period of 90 days.

Hon Thomas Tayebwa (Ruhinda North) said the Landlord and Tenant Bill, 2018 should consider instances where the premise changes ownership.

He says the new owner may choose to for instance renovate the premise and increase rent to cover renovation costs.

Hon Agaba Abbas (Kitagwenda) suggested that security deposit for rent should be optional.

He said some landlords do not demand for security deposit.

Hon Latif Sebaggala (Kawempe North) said the purpose for security deposit is that in case the tenant tampers with the house, the landlord is able to use the deposit for renovation.

“I also want to see a safe guard for tenants when the premise ownership changes.”

Hon Muhammad Nsereko said Uganda should borrow a leaf from developed countries and guard its currency through legislation that encourages use of local currency, while transacting business.

He suggested that landlords should cease from charging rent in dollars.

The house approved the provision within the Landlord and Tenant Bill, 2018, requiring rent to be charged in the local currency as opposed to the US Dollar, as it has been the case.

The house then passed the Landlord and Tenant Bill, 2018, aimed at harmonising the relationship between landlords and tenants.

Hon Nsereko thanked Parliament ‘on behalf’ of tenants and landlords of Uganda.

He says “for the 1st time the front bench was in agreement”.