As businesses at MIC Plaza, a major commercial complex in Kigali, grapple with sudden rent increases and unclear charges for electricity, water, security and maintenance, many small shops are shutting down or relocating. While MIC manages the units it still owns, those sold to private buyers are controlled entirely by individual landlords. This situation has raised questions about whether Rwanda’s condominium law—meant to regulate shared property ownership and management is being properly applied. ALSO READ: Businesses count losses as rent pressures mount at MIC Plaza Paul Rwigamba, Director of Projects and Property Management at Century Real Estate, said developments like MIC Plaza, which are owned by multiple individuals, are legally classified as condominiums and should be governed under the condominium law. Under Law N°15/2010 of 07/05/2010, which establishes and regulates condominiums, Article 11 requires the creation of an association of co-owners to manage the property and safeguard the collective interests of owners. Rwigamba explained that common facilities such as lighting, bathrooms and shared water infrastructure belong to all unit owners collectively and therefore require clear, jointly agreed rules. “The issue tenants are facing at MIC Plaza is that an owners’ association does not seem to exist or function properly. Anyone who buys a unit should know that they automatically become part of an association, and that association should manage the property as a whole,” he said. In properly managed condominiums, he added, tenants typically pay a monthly service charge based on the size of the space they occupy. “That money is used to cover shared costs such as water, electricity, security and maintenance. Importantly, this service charge is not income for the landlord.” This arrangement is backed by Article 12 of the condominium law, which gives owners’ associations the power to determine each owner’s contribution to shared expenses, manage service contracts, enforce rules governing common areas and take action against owners who fail to meet their obligations. On rent increases, Rwigamba said these are separate from service charges and are governed by agreements between landlords and tenants. ALSO READ: Who protects consumers from unfair housing prices? “Some landlords may have bought their units at a high price or taken bank loans, which may push them to increase rent,” he said. “However, there is no law that fixes how much rent should be charged. Rent is determined by the landlord, market prices, and supply and demand. Increasing rent is not illegal.” He noted that rent adjustments should ideally be addressed through clear contractual arrangements. “It is a contractual obligation. One common approach is rent escalation, where a landlord may propose, for example, a 5 per cent annual increase when signing the contract,” he said. “The tenant can negotiate this down to 2 or 3 per cent. Whatever is agreed at the beginning of the contract is what takes precedence.” Philbert Mbanza, a certified real property valuer, said disputes like those at MIC Plaza often arise from weak or vague tenancy contracts. “Normally, a contract should clearly state when and how rent can be increased. The problem is that some landlords increase rent whenever they want,” he said. Mbanza added that tenant protection remains a major gap in Rwanda’s legal framework, as there is no law that comprehensively safeguards tenants. “Even when new developments are built, rents increase—not just at MIC Plaza, but in other buildings as well,” he said. He also pointed to practices not clearly regulated by law, such as requiring tenants to pay three months’ rent in advance, with the third month held as “caution money” and promised back upon exit, but often withheld on claims of damage. ALSO READ: Property owners on the spot for ripping off tenants on ‘caution money’ “So far, the law mainly protects landlords. Under contract law, both parties should be treated equally—tenants have obligations, but landlords also have obligations,” he said. Joseph Rutiyomba, Chairperson of the Rwanda Association of Real Estate Brokers (RWAREB), said the sector still suffers from weak regulation and oversight. “Unlike other professions in Rwanda—such as lawyers or property valuers, where affiliation to a professional body is mandatory, real estate lacks a binding framework,” he said. “When disputes arise, people often have no option but to go to court.” Rutiyomba said discussions have recently been held with the Ministry of Infrastructure and the Rwanda Land Authority to formalise a Real Estate Industry association. “The body would oversee transactions, mediate disputes between tenants and property owners, and help prevent conflicts before they reach court,” he said.
