Justicia Shipena
Urban and rural development minister James Sankwasa says a fine of N$200 under the Rent Ordinance of 1977 no longer meet the realities of today’s property market.
Sankwasa said the penalties were set for a different time and must now be reviewed as part of efforts to modernise Namibia’s rental laws.
“As I indicated in my previous responses, we are seized with drafting a new bill that speaks to today’s rental markets. That means matters such as N$200 fines were ideal for the property market of that time,” Sankwasa told Parliament on Thursday.
He said the value of money has changed, and experts will assess what such fines from three decades ago would mean today.
“In today’s market, the time value of money must be considered, and the experts will advise on what N$200 thirty (30) years ago is worth today if fines are still found to be ideal solutions to the same problems they were solutions to (30) years ago,” he said.
He responded to questions about outdated provisions in the Rent Ordinance No. 13 of 1977, including weak enforcement and the absence of functioning rent control structures.
Sankwasa confirmed that the ministry is working to revive and establish rent control boards.
The process includes reviewing the 1977 ordinance and drafting a new bill aligned with current rental market conditions.
“The matter is procurement, and it will soon be advertised through Open National Bidding for consultants with expertise in property values, property laws, and rental matters to come on board,” Sankwasa told lawmakers.
The ministry does not have legal authority to control rents.
“Currently, there is no law that empowers the ministry to control the rental prices, hence the need to establish the rent control board to address this issue,” he said.
Sankwasa noted that the Rent Ordinance defines “reasonable rent” as not more than 9.5% per year of the property value, including land and improvements. This links rental prices directly to property values.
He pointed to the establishment of the Namibia Council for Property Valuers Profession, inaugurated in March 2025, as part of broader reform.
Banks, which finance properties and determine their value, have long influenced the valuation profession, which the council regulates.
Sankwasa said stabilising the rental market will require cooperation between the Namibia Estate Agents Board, the Namibia Council for Property Valuers Professionals, and the planned rent control boards.
He added that faster delivery of serviced land and affordable housing is also necessary.
He warned that reforms must not destabilise the property market.
“However, we cannot take years to find solutions, and that is what we are trying to be careful about to prevent crashing the market,” Sankwasa said.
He said enforcement of existing laws remains a problem.
“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. So, we start there,” he said.
The ministry has not given a timeline for when the new rental bill will be tabled in Parliament.
