How to deal with a landlord who refuses to return your deposit – the specific legal steps

Moving out of a rented house in Nairobi often comes with a familiar headache: a landlord who suddenly stops picking up phone calls or invents exaggerated repair costs to keep your deposit.
Many tenants simply walk away and accept the loss, assuming legal action is too expensive or slow. However, Kenyan law provides steps to get your money back.
The problem stems from a lack of formal oversight during move-outs. In a peer-reviewed study on urban rental dynamics published in Environment and Urbanization, researchers noted that “tenants frequently lose their security deposits due to asymmetrical bargaining power and the absence of institutionalised move-out inspections.”
Overcoming this requires building an evidence trail. Before returning the keys, take detailed photos and videos of the empty house. Keep your tenancy agreement, rent receipts or M-Pesa statements, and all written messages regarding the refund.
Start with a formal written demand letter
Do not rely on verbal promises or informal chat messages. Draft a formal demand letter and send it to the landlord by registered post or email.

The letter must state the exact amount owed, such as Ksh25,000, cite the tenancy agreement, and specify your account details for the payment.
Give the landlord a clear deadline of 7 to 14 days to refund the money. State explicitly that failure to pay will lead to legal action.
This letter carries weight because it proves to a judge that you attempted to resolve the matter amicably before coming to court.
Take the dispute to the Small Claims Court
If the deadline passes without payment, escalate the matter. For disputes under Ksh1,000,000, the Small Claims Court is the most efficient option for Nairobi residents.

You do not need an advocate to file a case, which keeps costs minimal. Filing fees start at Ksh200, and by law, cases before this court must be resolved within 60 days.
For low-income residential tenancies governed by the Rent Restriction Act, the Rent Restriction Tribunal also provides legal resolution. With your photos, receipts, and a copy of the demand letter, the process is direct.
Landlords rely on tenants giving up out of frustration, but using established legal avenues can ensure you reclaim what is rightfully yours.