Version: 1.0
Effective Date: 2026-05-24
Applies To: Guest-initiated cancellation of confirmed, paid bookings
1. Cancellation Eligibility Window
A guest may cancel a booking only during the 2-week finalization grace period that begins immediately after payment is confirmed. This window exists to allow guests to verify the property before formally committing to the tenancy.
A booking cannot be cancelled on the Kushi platform once any of the following has occurred:
- The guest has manually finalized the booking within the app.
- The 2-week grace period has elapsed and the booking has been automatically finalized by the system.
In either case, the host has already received their payment and the tenancy agreement has been issued. Any dispute after this point is governed by the signed Tenancy Agreement and must be resolved directly between the guest and the host. Kushi is not a party to post-finalization cancellations.
2. What Has and Has Not Been Utilized at Cancellation Time
When a guest cancels within the grace period, the following is true:
| Item | Status at Cancellation |
|---|---|
| Base rent | Held by Kushi — not yet transferred to host |
| Caution fee | Held by Kushi — not yet transferred to host |
| Service charge | Held by Kushi — not yet transferred to host |
| Legal fee | Collected but unutilized — tenancy agreement has not been issued |
| Stamp duty | Collected but unutilized — not yet remitted to FIRS |
| Platform fee | Utilized — Kushi has completed matching, KYC, and facilitation |
3. Refund Breakdown
The following table defines exactly what is refunded to the guest upon a valid cancellation:
| Fee Item | Refund Amount | Rationale |
|---|---|---|
| Base Rent | 90% refunded | A 10% cancellation fee is deducted (see Section 4) |
| Caution Fee | 95% refunded | The 5% caution custody fee is non-refundable per the Caution Fee Policy |
| Service Charge | 100% refunded | Host has not rendered any tenancy-related services |
| Legal Fee | 100% refunded | Tenancy agreement has not been issued |
| Stamp Duty | 100% refunded | Not yet remitted to FIRS |
| Platform Fee | Non-refundable | Kushi has fully performed its facilitation role |
Note: The caution fee refund follows the standard refund process and is issued directly to the guest. Because the tenancy never commenced, the host is not granted a claim window against the caution deposit for this cancellation type.
4. Cancellation Fee (10% of Base Rent)
A cancellation fee of 10% of the base rent is deducted from the guest's refund. This fee is allocated as follows:
| Recipient | Allocation | Purpose |
|---|---|---|
| Host | 5% of base rent | Compensation for the property being removed from the market during the grace period |
| Kushi | 5% of base rent | Cancellation processing and administrative costs |
The host's 5% portion is disbursed to the host's payout account within the standard payout window.
5. Refund Processing
- Refunds are processed within 5–7 business days of the cancellation being confirmed.
- All refunds are issued to the original payment method used at checkout via Flutterwave.
- The caution fee refund (95%) is processed through the same mechanism — no separate request is required.
- Kushi will send the guest a cancellation confirmation and itemized refund breakdown by email.
6. Listing Status After Cancellation
Upon a valid guest-initiated cancellation:
- The property listing is immediately reinstated as available on the platform.
- The host is notified of the cancellation and the 5% compensation disbursement.
- The guest's account retains a record of the cancelled booking.
- The guest is free to apply for the same or a different property.
7. Relationship to the Tenancy Agreement
Because cancellation is only permitted before the tenancy agreement is issued, this policy operates entirely outside the scope of the Tenancy Agreement. No agreement is ever generated for a cancelled booking. The signed Mandate (submitted during the application) becomes void upon cancellation.
8. Disputes
If a guest believes their refund was calculated incorrectly, they may raise a dispute through the Kushi support channel within 14 days of receiving the refund confirmation. Kushi's determination on refund amounts is final for cancellations processed under this policy.
This policy is incorporated by reference into the Kushi Terms of Service. See also: caution-fee-policy.md, fee-schedule.md.