Nyumbani Rentals
Dec 29, 2025 · 7 min read
Commissions are a constant source of friction. Landlords feel overcharged, and agents feel undervalued. But in Kenya, the law is clear on who gets paid and who doesn't. A shocking **47.1% of real estate firms are not registered** (KNBS 2023), posing a huge risk to property owners.
Case Study: Ladha v Soni [2017]
In the case of *Hussein Ladha v Haresh Soni [2017] eKLR*, the Plaintiff sued for a commission of USD 253,800. The court struck out the suit. Why? The Plaintiff was not a registered estate agent. The court ruled that **an unlicensed agent has NO legal right to claim commission**, declaring such agreements illegal and unenforceable (Source: JibuDocs).
Standard Commission Rates
While the Estate Agents Act (Cap 533) provides a scale, the market dictates reality. **Sales:** Typically 1-3% (tiered by value). **Lettings:** Standard is 1 month's rent. However, ensure this is agreed upon in writing *before* they bring a client.
Mediating Agent Disputes
Disputes often arise over 'Effective Cause'—who actually closed the deal? If Agent A shows the house, but the tenant returns 3 months later to rent directly from you, Agent A may still legally claim commission. To avoid this, use clear, non-exclusive agency agreements that define when commission is earned.