Archaic Laws Hold Tenants Hostage in Rent Debate

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Archaic Laws Hold Tenants Hostage in Rent Debate
Archaic Laws Hold Tenants Hostage in Rent Debate

Africa-Press – Namibia. For thousands of Namibians, the end of the month has become a moment of dread. Rent is climbing, deposits are disputed, and when problems arise, many tenants discover there is little practical protection to fall back on.

Now, the government has acknowledged what frustrated renters have long suspected: that Namibia’s rental market is operating without a functioning legal backbone.

Responding to questions from the Popular Democratic Movement (PDM) in Parliament last week, Deputy Minister of Urban and Rural Development Evelyn !Nawases-Taeyele admitted that the country’s main rental law, the Rents Ordinance (No. 13 of 1977), is “completely outdated” and has effectively been non-functional since Independence.

In simple terms, the system meant to regulate rent and protect tenants has not been working for decades.

The ministry is now trying to revive the long-dormant Rent Control Boards, once envisioned as watchdogs to ensure fairness between landlords and tenants. But doing so will not be as simple as flicking a switch.

The revival process necessitates a comprehensive review of the 1977 ordinance and the drafting of entirely new legislation to align with contemporary property market realities. According to !Nawases-Taeyele, the process is currently at the procurement stage. Consultants with expertise in property law, valuation, and rental matters will soon be appointed through an open national bidding process. However, no timeline has been given for when the new law will reach the Cabinet or Parliament. Until then, the ministry has no legal power to control rental prices. For tenants in Windhoek, Swakopmund and other high-demand areas, that means rental costs are largely dictated by market forces, not regulatory muscle. Namibia’s rental squeeze is unfolding against the backdrop of a housing backlog estimated at more than 300 000 units. Closing that gap is estimated to require over N$70 billion. Under National Development Plan 6 (NDP6), land and housing delivery have been prioritised, with a focus on upgrading informal settlements, establishing townships and servicing land before homes can be built. But supply constraints persist, particularly in urban hubs like Khomas and Erongo. In 2024, the average monthly rent exceeded N$7 000. Two-bedroom units surged by 14%, while inflation peaked at just over 5%. For many households, rent is rising far faster than salaries. Complaints are mounting, especially over rental deposits.

In theory, Section 25 of the 1977 ordinance limits deposits to no more than 50% of one month’s rent and requires regulated administration. In practice, !Nawases-Taeyele conceded that these provisions have not been operational for decades.

Instead, rental oversight has been left to the Namibia Estate Agents Board under the Estate Agents Act of 1976, which falls under the Ministry of International Relations and Trade. Enforcement of deposit rules rests with that board. The result, critics argue, is fragmented and weak enforcement. Laws exist on paper, but tenants often struggle to recover deposits or ensure interest-bearing requirements are honoured. Even if the Rent Control Board is revived! !Nawases-Taeyele warned that this alone will not automatically bring rent down.

Under the 1977 ordinance, “reasonable rent” is defined as 9.5% per annum of a property’s value, including land and improvements. In a market where property values remain elevated, that formula can still justify high rent.

The deputy minister also raised concerns about property valuations, arguing that commercial banks have, for years, both financed home loans and influenced valuations, effectively acting as both “player and referee”.

A new council, she said, aims to professionalise and stabilise valuations to reduce distortions. At the same time, she cautioned against reforms that could destabilise the property market. “Sometimes the system seems wrong not because there aren’t enough laws, but simply because the existing laws are not being implemented effectively or are being disobeyed or abused!” !Nawases-Taeyele said.

Civil society organisations are less patient. The African Labour and Human Rights Centre recently accused the government of inaction and failure to enforce existing rental laws. Its director, August Maletzky, told local media that the state has for decades neglected to revive a rent control board or modernise penalties under the 1977 ordinance.

“For decades, the State has neglected to revive a rent control board. It has neglected to modernise penalties and the enforcement of an established statutory law,” Maletzky said.

“More concerning is the ministry’s admission that there is no effective control of rental prices. Exploitation is happening in broad daylight, yet the government continues with its lengthy processes. While the government is drafting laws, Namibians are suffering,” said Maletzky.

For now, tenants remain caught in a system that even the government describes as outdated and ineffective. The promise of a revived Rent Control Board offers hope, but without clear timelines, enforceable rules, and stronger oversight, many renters will continue to navigate rising costs and uncertain returns on their deposits on their own.

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