Kuwait Late Fees & Delayed Rent Payments for Landlords

Governed by Decree Law No. 35 of 1978 (effective 16 August 1978) and recently enhanced by Decree Law No. 95 of 2024, delaying the payment of monthly rent in the State of Kuwait is considered a significant violation. Therefore, the Kuwaiti legislator established a protective system for landlords to deal with delays and provide a definitive procedural path for eviction and collection.

Legal DisclaimerThis guide provides general legal information. Lease laws can change. Always consult a licensed notary or lawyer in this region.

Can a Landlord Add Interest or Penalties for Late Payment?

Based on Islamic Sharia principles and Article 305 of the Kuwaiti Civil Code, any agreement for interest or financial penalties for the delay in fulfilling a monetary obligation (such as rent) in residential transactions is considered void and unenforceable as it constitutes usury (Riba). Such clauses will be rejected in court.

• Prohibition of Late Fees: Fixed percentage late fees or hierarchical increases are legally void. Landlords may only claim actual proven damages resulting from the delay.
• Collecting Rights via Direct Eviction: The "Kuwaiti Rent Law" prefers to grant the landlord a solution by terminating the relationship through rescinding the contract rather than engaging in claims for financial fines.

The Golden (20) Day Grace Period and Proving the Delay

Kuwaiti law (Article 20 of Rent Law No. 35 of 1978) specifies a temporal protection period for the tenant regarding eviction lawsuits:

The landlord may only file for eviction if the tenant fails to pay the rent within the period specified in the contract, provided the delay exceeds twenty (20) consecutive days from the due date.

• Example: If the contract states the payment date is the "1st of every Gregorian month," the landlord is obligated to wait until the 21st of that month. If the tenant has not paid by then, the legal justification for an eviction lawsuit is established.

Filing an "Eviction for Non-Payment" Lawsuit

If the twenty-day period elapses without the tenant fulfilling the rent, the landlord has the right to file an Eviction for Non-Payment of Rent lawsuit before the Plenary Court (Rental Circuit).

Executive Formula and Notarized Contracts (Decree Law No. 95 of 2024): Under Decree Law No. 95 of 2024 (adding Article 11 bis to Law 35/1978), lease contracts authenticated by the Notary Public and carrying the "executive formula" serve as executive instruments for:

1. The collection of due rent: To initiate execution, the landlord must serve a formal notice via a bailiff, giving the tenant at least five (5) days to pay. Note that the 20-day grace period is not a prerequisite for this collection method.
2. The recovery of the property: This summary eviction process is permitted ONLY upon the expiry of the lease term. For non-payment during an active term, a standard eviction lawsuit under Article 20 is still required.

The Perquisite of Avoiding Rescission (The Tenant's First Chance)

The Kuwaiti judiciary offers a chance to the tenant if this is the first and only time they have defaulted. Under Article 20, if the tenant pays all rent arrears and litigation costs before the end of the first court session, the court may dismiss the eviction request.

Repeating the Refusal and Delay (No Leniency for the Second Time)

If the landlord files an eviction lawsuit for non-payment for a second time (repeating the delay and exceeding twenty days) without a justified excuse, the court must rule for eviction regardless of subsequent payment. Paying off the debt during the hearing will not benefit the tenant in dropping the eviction this time.

Avoid losing control over your collections. Thanks to Landager's collection and warning tool, a building owner in Kuwait can follow up with late tenants using a strict, direct electronic alarm that accurately calculates the twenty-day period, serving as live and clear evidence sent to the Rental Court administration when litigation is necessary.

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