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Kuwait acts on car rental fees

MoCI to standardize contracts

publish time

17/01/2026

publish time

17/01/2026

Kuwait acts on car rental fees

KUWAIT CITY, Jan 17: In a move to regulate the contractual relationship between car rental offices and consumers, officials at the Ministry of Commerce and Industry have ordered the formation of a four member committee to study proposals for amending the car rental agreement. The directive follows the outcomes of a coordination meeting held last week with relevant parties. According to informed sources, the ministry officials have instructed the formation of a committee with representatives from the Ministry of Commerce and Industry, the Ministry of Interior, the Insurance Regulatory Unit, and the Experts Department at the Ministry of Justice.

This committee will study the submitted proposals for amending the car rental agreement, prepare a detailed report on its findings, and submit it to the Minister of Commerce and Industry, Khalifa Al-Ajil, for further action The proposed amendments include regulating the operations of car rental offices and companies in accordance with seven main axes. The most notable of these is establishing clear and approved classifications for car categories and rental prices, covering economy, mid-range, and luxury vehicles.

The proposals also aim to standardize rental agreement terms in all offices and companies, using clear and specific language that protects the rights and outlines the obligations of both parties. In addition, the proposals recommend abolishing the standardized charge for additional kilometers in rental contracts and replacing it with a calculation method based on the vehicle’s value, category, and prevailing market price, with exceptions for certain special vehicle categories whose usage requires different arrangements.

The proposals further emphasize the importance of requiring rental offices to notify renters of an approaching contract expiration within a fixed timeframe, whether by phone or text message, ensuring consumers are fully aware of the rental period. In cases of renter default, failure to return the vehicle, or loss of communication, immediate legal action will be taken to prevent the accumulation of unpaid rent without the consumer’s knowledge. The proposals also call for prohibiting consumers from paying unjustified fees, such as file-opening charges, fees for each accident, depreciation in the event of total loss, or mandatory vehicle repairs at the dealership, unless these clauses are explicitly stated in the contract and approved in advance by the Ministry of Commerce and Industry.

The proposals further emphasize the requirement for rental offices and companies to provide a comprehensive record, including the history of accidents involving rented vehicles, repair invoices, and copies of rental contracts. They also require providing an alternative vehicle to the consumer if the rented car breaks down due to a technical malfunction during the rental period, without any additional cost, and stipulate that the consumer should not be charged for vehicle towing in such cases

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff