Tenants of state-owned commercial units vow to take their case to the Prime Minister’s Office if they do not get a response from the executives of the Federal Housing Corporation. They requested that the Corporation reconsider its decision after rental fees were amended upwards late last year.

Around 3,000 tenants held a meeting at Global Hotel on Sierra Leone Street on January 23, 2019. After opening remarks by Semehal Mekonnen, chairperson of the tenant’s committee, the ''lawfulness'' and procedures of the rental increases were discussed.

Two months ago the Corporation announced rental fee hikes by an average of 2,090pc for the first time in the Corporation's 43 years history. The rental fee amendment was applied on 6,128 commercial units, though it was subsequently revised.

Rental fees levied on non-governmental organisations (NGO), embassies, government offices and civil society tenants were lowered. The corporation reduced a square meter rental fee for these agencies from 339 to 140 Br. It has also lowered the 92 dollars a square meter fee imposed on embassies to 50 dollars.

The increases on commercial units were applied progressively over three years, rising yearly by 35pc, 70pc and 100pc. After delivering the announcement, the Corporation warned tenants to vacate the units if they disagree with the revised fees.

Unsatisfied, the tenants held a meeting mid-last week and agreed on five declarations that they intend to submit to the management of the Corporation.

The committee proposed a rental fee of 71.50 Br a square metre until a new rental fee is agreed upon. They also called for the extension of the deadline to their rental agreement, and for the Corporation to cease and desist from asserting that the tenants are paying very low rents.

Additionally, they called for a new directive to be drafted that will govern the relationships between the tenants and the Corporation; and for the suspension of the rental adjustment until another assessment is conducted.