Kenya's rental property market employs hundreds of thousands of caretakers — the individuals who collect rent, manage repairs, handle tenant issues, and maintain residential and commercial buildings on behalf of property owners. Yet the majority of these caretaking arrangements are governed by verbal agreements or poorly drafted letters that leave both the property owner and the caretaker legally exposed.
This guide covers everything a property owner or caretaker in Kenya needs to know about caretaker agreements — what they must include, the legal rights and obligations they create, how caretakers are classified under employment law, and the most common disputes and how to avoid them.
A property caretaker in Kenya is generally classified as an employee under the Employment Act 2007, not an independent contractor. This means the Employment Act's minimum protections — including minimum wage, leave entitlements, and termination procedures — apply to most caretaking arrangements.
What is a Caretaker Agreement?
A caretaker agreement is a written contract between a property owner (or their agent) and a caretaker, defining the scope of the caretaker's duties, their compensation, their accommodation arrangements (if any), and the conditions under which the relationship can be ended.
In Kenya, caretaker agreements typically arise in three scenarios: residential apartment blocks where the caretaker lives on-site; commercial properties where a caretaker manages access and basic maintenance; and absentee landlord arrangements where the owner lives far from the property and needs someone to manage it day-to-day.
Caretaker vs. Property Manager — What's the Difference?
These terms are often used interchangeably in Kenya but they describe different roles with different legal implications. A caretaker typically performs hands-on physical duties — cleaning, minor repairs, security, and rent collection. A property manager is usually a professional or company engaged under a management agreement to make decisions about the property, including sourcing tenants, setting rent, and overseeing renovations. Property managers are typically paid a percentage of rental income rather than a fixed salary.
For this article, we focus on the caretaker role — the most common arrangement across Kenya's residential rental market.
Rights and Responsibilities — At a Glance
✅ Caretaker's Responsibilities
- Collecting rent on the agreed dates and issuing receipts
- Maintaining common areas — staircases, compound, bins
- Reporting maintenance issues to the property owner promptly
- Controlling access — logging visitors, managing gate security
- Overseeing minor repairs as authorised
- Handling tenant complaints and escalating as needed
- Keeping records of occupancy, payments, and repairs
- Not subletting their accommodation to third parties
⚖️ Caretaker's Legal Rights
- Minimum wage as gazetted (if employed full-time)
- Annual leave of 21 days after 12 months
- Sick leave entitlement under the Employment Act
- Written notice before termination (minimum 28 days)
- Safe and habitable accommodation if provided on-site
- NSSF and NHIF contributions from employer
- Protection from summary dismissal without just cause
- Gratuity on termination if applicable
What a Caretaker Cannot Legally Do
This is the area where the most disputes arise. Many property owners informally expand the caretaker's role beyond what is legally appropriate, and many caretakers overstep the boundaries of their authority. Under Kenyan law, a caretaker:
- Cannot evict a tenant — Only a court order can compel a tenant to vacate. A caretaker who changes a tenant's locks or removes their belongings without a court order exposes the property owner to liability for illegal eviction.
- Cannot increase or negotiate rent — Unless expressly authorised in writing by the property owner, rent terms are set by the landlord-tenant agreement and cannot be varied by the caretaker.
- Cannot enter a tenant's unit without notice — Even a caretaker managing the property needs to give reasonable notice before entering an occupied unit, except in a genuine emergency.
- Cannot pocket rent collected — All rent collected must be accounted for and remitted to the property owner. Misappropriation of rent is a criminal offence.
- Cannot authorise major expenditure — Repairs or improvements above a reasonable threshold must be approved by the property owner in advance.
The most frequent dispute is a property owner terminating a caretaker who is also living on the property — and then discovering that the caretaker has both an employment claim and a right to remain in accommodation. Always have a clearly written agreement that addresses what happens to the accommodation upon termination of employment.
What Must a Caretaker Agreement Include?
Essential Clauses in Every Caretaker Agreement
- Full details of both parties — property owner's name, ID, and address; caretaker's name, ID, and address
- Property description — the specific property or properties being managed
- Commencement date and duration — fixed-term or indefinite
- Scope of duties — a specific, detailed list of what the caretaker is and is not authorised to do
- Remuneration — monthly salary, any allowances, and payment date
- Accommodation clause — if the caretaker lives on-site, clearly state that the accommodation is tied to the employment and terminates with it
- Rent collection authority — specify which units, how receipts are issued, and how collected funds are remitted
- Authorised expenditure limit — the maximum the caretaker can spend on repairs without prior approval
- Reporting obligations — how and how often the caretaker reports to the owner
- Notice period — minimum 28 days for monthly-paid caretakers
- Termination procedure — including what happens to accommodation on termination
- Confidentiality — tenant personal information must be kept confidential
Is a Caretaker an Employee or an Independent Contractor?
This is one of the most legally significant questions in any caretaking arrangement. The classification matters because it determines whether the Employment Act's protections apply. Kenyan courts use a multi-factor test to determine employment status, looking at control (does the owner control how the work is done?), integration (is the caretaker integrated into the property's operation?), and economic dependence (is the caretaker financially dependent on this one arrangement?).
In practice, a resident caretaker who lives on-site, works set hours, and performs ongoing duties under the owner's direction will almost always be classified as an employee — regardless of what any agreement says. Courts have consistently held that calling someone an "independent contractor" does not make them one if the economic and operational reality is that of employment.
Caretaker Accommodation — Key Legal Points
When a caretaker lives on the property they manage, the accommodation creates additional legal complexity. The critical principle is that the right to occupy is tied to the employment. When the employment ends, the right to occupy ends simultaneously — but only if this is clearly stated in the written agreement.
Without this clause, a caretaker who has occupied premises for a long period may claim tenancy rights, making removal legally complicated and requiring a court order. Always include an explicit clause stating that the accommodation is provided as a benefit of employment and does not create any tenancy rights.
Download a Lawyer-Drafted Caretaker Agreement
Sheria.ke's Caretaker Agreement template covers all essential clauses — duties, pay, accommodation terms, and termination — drafted by Ochieng Omollo & Co. Advocates and compliant with Kenya's Employment Act 2007.
Download the Template →Frequently Asked Questions
Can a caretaker be dismissed without notice in Kenya?
Only in cases of gross misconduct — such as theft of rent, violent behaviour, or serious breach of the agreement. In all other cases, the minimum notice period under the Employment Act applies: 28 days for monthly-paid caretakers. Dismissing a caretaker without notice or cause exposes the property owner to a claim at the Employment and Labour Relations Court.
Does a caretaker need to be registered with NSSF and NHIF?
Yes, if they are classified as an employee (which is the case for most residential caretakers). The property owner is obligated to register the caretaker with NSSF and NHIF and make the required employer contributions. Failure to do so is an offence under the respective statutes.
What happens if a caretaker steals rent money?
Theft or misappropriation of rent by a caretaker is a criminal offence under the Penal Code and can be reported to the police. It also constitutes gross misconduct justifying summary dismissal without notice. The caretaker is personally liable to repay the misappropriated funds. Having a clear rent collection and remittance procedure — including receipts and regular accounts — is the most effective deterrent.
Can a property owner use the caretaker to collect higher rent than is owed?
No. A caretaker collecting rent in excess of what tenants owe — whether at the owner's direction or on their own initiative — is potentially liable for extortion. Rent must match the agreed tenancy terms.