NOTES:

1. This precedent is intended to act as a guide in drafting a Tenancy

Agreement or Periodic Lease (short term lease for a term of 1 year) between
companies for residential property.
2. It may be modified or amended as need may be.
3. This template therefore does not apply in case of tenancy for more than a
year.

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TENANCY
AGREEMENT

DATED 20[*]

-BETWEEN-

[*]

(THE “LANDLORD”)

-AND-

[*]

(THE “TENANT”)

-RELATING TO -

[*]

(THE “PROPERTY”)

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 TENANCY AGREEMENT

THIS TENANCY AGREEMENT is made as of this [*] day of [*] 20[*] BETWEEN:-

(1) [*]1, a limited liability company incorporated under the Laws of Kenya, for
purposes hereof of Post Office Box Number [*], (hereinafter referred to as the
“Landlord” which expression shall unless where the context so requires,
include the Landlord’s personal representatives, heirs and assigns); and

(2) [*]2, a limited liability company incorporated under the Laws of Kenya, for
purposes hereof of Post Office Box Number [*], (hereinafter referred to as the
“Tenant” which expression shall where the context so requires include the
Tenant’s personal representatives, heirs and assigns). The Landlord and the
Tenant are herein after together called Parties and Party shall refer to either
of them.

Recitals

(A) The Landlord is the legal and beneficial owner of the Premises (as
hereinafter defined).

(B) The Landlord has agreed to let to the Tenant and the Tenant has agreed to
accept the tenancy of the Premises (as hereinafter defined) on the terms and
conditions of this Lease.

(C) In consideration of the Rent (as hereinafter defined) paid by the Tenant to
the Landlord in accordance with the terms of this Lease, the Landlord has
agreed to grant to the Tenant a tenancy of the Premises for the Term (as
hereinafter defined) and subject to the covenants, agreements, conditions,
restrictions, stipulations and provisions hereinafter contained.

NOW THIS LEASE WITNESSES AS FOLLOWS:

1. Definitions and Interpretation

1.1. In this Lease (including its recitals and the Schedules), the following
expressions shall unless the context otherwise requires have the following
meanings:

(a) “Business Day” means any day (other than Sunday) on which
commercial banks in [*]3, are open for the conduct of banking
business;

1
Insert name of the Landlord.
2
Insert name of the Tenant.
3
Insert Location/jurisdiction within which the scope of the Agreement applies.

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 (b) “Commencement Date” means [*];

(c) “Interest” means the per annum rate of four per cent (4%) above the
Central Banks Rate or such other rate as the Landlord may from
time to time specify in writing calculated on daily balances and
compounded monthly;

(d) “Land Act” means the Land Act (Act No.6 of 2012);

(e) “Land Laws” means together the Land Act and the Land Registration
Act any subsidiary legislation, rules and regulations promulgated
thereunder and any practice directions issued pursuant to the Land
Act and the Land Registration Act;

(f) “Landlord’s Advocates” means Messrs. [*];

(g) “Land Registration Act” means the Land Registration Act (Act No. 3 of
2012);

(h) “Permitted Use” means the use of the Premises for private residence
of the Tenant and his/her family and their usual occasional house
guests and usual domestic staff;

(i) “Premises” means all that apartment/house/unit marked as number

…………………. And erected on property known as Land Reference
Number [*];

(j) “Rent” means the amount of Kenya Shillings [*] (KShs. [*]/=) per
month for the Term payable under the terms of clause 3; and

(k) “Term” means the period of one [1) year from the Commencement Date
or such other period as may be agreed by the parties in writing.

1.2. References to any right of the Landlord to have access to the Premises shall
be construed as extending to any superior Landlord, any chargee of the
Premises and all persons authorized by the Landlord, superior Landlord and
chargee.

1.3. References to "consent of the Landlord" or words to similar effect mean

consent in writing signed by or on behalf of the Landlord.

1.4. References to any clause or schedule without further designation shall be

construed as a reference to the clause or schedule of this Agreement so
numbered.

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1.5. Words importing one gender shall be construed as importing any other
gender.

1.6. Words importing the singular shall be construed as importing the plural and
vice versa.

1.7. Where any party comprises more than one person the obligations and
liabilities of that party under this Agreement shall be joint and several
obligations and liabilities of those persons.

1.8. Save as otherwise stated references to numbered clauses and schedules are
references to the clauses and schedules in this Agreement which are so
numbered.

1.9. The clause and schedule headings do not form part of this Agreement and
shall not be taken into account in its construction and interpretation.

2. Demise

The Landlord grants and leases to the Tenant the Premises for the Term at the
Rent and subject to all rights, easements, privileges, restrictions, covenants
and stipulations of whatever nature affecting the Premises and excepting and
reserving to the Landlord, its servants, agents and licensees a similar right
whether before or after the execution of this Agreement.

3. Rent and Renewal of Term

3.1. The Rent payable in respect of the Premises shall be a monthly sum of
Kenya Shillings [*] (KShs. [*]/-) and the same shall become due and
payable from the Commencement Date without any deductions whatsoever,
and on or before the 5th day of every succeeding month.

3.2. Renewal of the Term shall be upon express written notice of intent by the
Tenant to the Landlord not later than thirty (30) days prior to determination
of the Term, failure to which the tenancy will automatically terminate.

3.3. In the event that the parties agree to renew the tenancy for a further term to
be agreed between the parties, the Rent payable shall escalate at such rate
as the Landlord may determine and the parties shall enter into a fresh
tenancy agreement.

3.4. Deposit

3.4.1 On the Commencement Date, the Tenant shall pay a security deposit
equivalent to two (2) months’ rent for the Premises amounting to Kenya
Shillings [*] (KShs. [*]/-) which amount shall be retained by the Landlord

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 throughout the Term as security for the due performance by the Tenant of
the covenants agreements restrictions stipulations and provisions herein
contained provided that the Landlord shall be entitled at any time and from
time to time to apply the deposit monies in and towards the satisfaction and
discharge of the covenants and agreements on the part of the Tenant if after
giving thirty (30) days’ notice specifying the nature of the breach and the
Tenant fails to satisfy or discharge a material covenant or agreement herein.
The Tenant acknowledges and agrees that the Landlord shall not be
required to account for any interest on the deposit monies held by the
Landlord.

3.4.2 The Deposit, less any deductions as the Landlord shall deem sufficient to
make good any damage to the Premises, shall be refunded by the Landlord to
the Tenant within thirty (30) days of expiry or other determination of the
Term hereby created and upon fulfilment by the tenants of all their
obligations under this agreement.

3.5. Service Charge

In addition to paying Rent, the Tenant shall pay a monthly service charge of
Kenya Shillings [*] (KShs. [*]/-) Only and the same shall become due and
monthly in advance, on or before the fifth day of every succeeding month.

3.6. All payments shall be paid directly to the Landlord by way of cheque,
banker’s cheque or cash into the Landlord’s or Landlord’s agent nominated
bank account.

4. The Tenant's Covenants

The Tenant covenants with the Landlord: -

(a) To pay the Rent on the days and in the manner set out in Clause 3
above, not to exercise or seek to exercise any right or claim to withhold
Rent or any right or claim to legal or equitable set off and, if so,
required by the Landlord, to make such payments by banker's order to
the bank and account which the Landlord may from time to time
nominate.

(b) To pay all electricity, water and telephone user charges, if any in
respect of the Premises throughout the Term of this Agreement or up to
the date of its sooner determination.

(c) Having satisfied themselves upon gaining access to the Premises that it
is in good order, to be responsible for the full maintenance of it
throughout the Term of this Agreement.

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(d) To insure their personal and household belongings and indemnify the
Landlord against any action, claim or demand arising from any loss,
damage, theft or injury to the Tenant or Tenant’s family, licensee,
invitees or servants.

(e) To ensure that the internal plumbing, immersion heaters, window locks,
fastenings and other ancillary apparatus are in good order before
gaining access to the Premises and thereafter throughout the Term of
this Agreement carry out or cause to be carried out all running repairs
necessary.

(f) To pay and indemnify the Landlord against Value Added Tax or any tax
of a similar nature, if applicable, which may be substituted for it or
levied in addition to it chargeable in respect of any payment made by
the Tenant under any of the terms of or in connection with this
Agreement or in respect of any payment made by the Landlord where
the Tenant agrees in this Agreement to reimburse the Landlord for such
payment.

(g) To repair the Premises and keep them in repair excepting damage
caused by an Insured Risk other than where the insurance money is
irrecoverable in consequence of any act or default of the Tenant or
anyone at the Premises expressly or by implication with the Tenant’s
authority.

(h) At least fourteen (14) days prior to the termination of this Agreement
due to breach of the Agreement for Sale terms by the Tenant (to varnish
the floor, paint with two coats of the best vinyl paint ( and in case of
wall and ceiling, at least two coats of plastic emulsion paint), as shall be
deemed necessary after a joint inspection between the Tenant and the
Landlord or its appointed agent, all parts of the interior and terrace of
the Premises as are usually painted to such specification and colour as
the Landlord shall in writing approve.

(i) To permit the Landlord and its agent or agents and all persons duly
authorized by the Landlord with all necessary apparatus, appliances,
machinery and materials to enter upon the Premises at all reasonable
times upon giving reasonable notice in writing to the Tenant of not less
than forty eight (48) hours for the purpose of examining the state and
condition of the Premises or of taking inventories of the Landlord’s
fixtures therein or of doing such work and things as may be properly
required for any repair or renewal either of the Premises or of the
electricity or water or drainage lines under any part of the Premises.

7
(j) To pay for the replacement of or make good repair or restore to the
reasonable satisfaction of the Landlord, all such articles of fixtures,
fittings, furniture and effects as shall be broken, lost, damaged or
destroyed during the Tenancy.

(k) To execute any repairs lawfully required to be done by the Tenant

before the expiration of one (1) calendar months’ notice given in writing
by the Landlord or its authorized agent or agents and if the Tenant shall
within such time fail to execute such work the Landlord may execute or
cause such work to be executed and recover the cost thereof from the
Tenant but without prejudice to the Landlord’s right of re-entry set out
in this Agreement.

(l) To report immediately in writing to the Landlord or its authorized agent

or agents any signs of infestation by white ants, bees or other
destructive insects or any wet or dry rot in the Premises and should the
Tenant fail to report as aforesaid then the Tenant shall be liable for the
cost of rectifying the additional damage due to such failure.

(m) To permit no person other than a person in the domestic service of the
said Tenant to occupy accommodation in the servant’s quarters (if any).

(n) Not without the previous written consent of the Landlord or its
authorized agent or agents to make any alterations attach fixtures or
erect additional structures in or upon the Premises or drive any nails
screws or other fastenings into the floors, walls, ceiling or woodwork of
the Premises.

(o) Not to transfer, assign, sub-let or part with or share the Premises or any
part of it without the prior written consent of the Landlord. In the event
that the Landlord gives consent, to assign, sub-let or part with or share
the Premises or any part of it, subsequent contracts executed to that
effect shall be drawn between the Landlord, Tenant and Assignee and
the Tenant shall remain liable for settlement of Rent due as per this
Agreement.

(p) Not to paint or exhibit in any window or upon any external part of the
Premises any trade, professional or business notice or advertisement
whatsoever.

(q) Not to do or permit or suffer to be done anything in or upon the

Premises or the garden or grounds surrounding the same which may at
any time be or become a nuisance or annoyance to the tenants or
occupiers of any adjacent premises.

8
 (r) Not to do or permit to be done anything whereby the Landlord’s policy
or policies of insurance of the said Premises against the Insured Risks
may become void or voidable or whereby the rate of premium for any
insurance may be increased and to repay to the Landlord all sums paid
by the Landlord by way of increased premium and all expenses incurred
by it in or about any renewal of any such policy or policies where the
payment of such sums or any of them shall have been rendered
necessary by a breach or non-observance of this covenant and all such
payments shall be added to the rent reserved and be recoverable as
Rents.

(s) To pay the nominal fees and disbursements of the Landlord’s advocates
and all other costs and expenses incurred by the Landlord in relation to
the preparation, execution and stamping of this Agreement as set out in
the schedule hereto.

(t) To be responsible for and to keep the Landlord fully indemnified against
all damages, losses, cost, expenses, actions, demands, proceedings,
claims and liabilities made against or suffered or incurred by the
Landlord arising directly or indirectly out of any act, omission or
negligence of the Tenant or any person at the Premises expressly or
impliedly with the Tenant’s authority or out of any breach or non-
observance by the Tenant of the covenants, conditions or other
provisions of this Agreement.

(u) That at all times if the Tenant is not the one living in the premises,
he/she shall provide the Landlord or the body charged with
management of the common property, with full details of the person
living in the Premises and provide him or her with the conduct rules
of the housing estate.

5. The Landlord's Covenant

The Landlord covenants with the Tenant: -

(a) To pay the land rent or any rate or tax which may be levied on the said
Property by the Government of Kenya or any other statutory authority
subject to the Landlord’s right of recovery.

(b) To keep the external walls, roof, main drains, common parts and
structure of the Premises in a proper state of repair and maintenance.

(c) Within thirty (30) days of the expiry or determination of the Term and
after delivery up of the Premises in accordance with the Tenant’s

9
 covenants herein the Landlord will refund to the Tenant the Deposit
without any interest, whatsoever, and upon deducting any charges
authorised in this Agreement.

(d) That the Tenant paying the Rent and performing and observing in the
several covenants on its part and the conditions contained in this
Agreement shall peaceably hold and enjoy the Premises during the
Term without any interruption by the Landlord or any person or agents
rightfully claiming under or in trust for the Landlord.

(e) To carry out any repairs to the interior of the Premises or to the
Landlord’s fixtures fittings and fastenings therein which may become
necessary at any time during the Term by reason of structural repairs
to or defects in the building or by reason of any breach or non-
performance of the obligations of the Landlord under this clause.

6. Rights of Re-entry and Termination

6.1. If there is a breach by the Tenant of any covenant or other term of this
Agreement, the Landlord may subject to the provisions of section 75 of the
Land Act re-enter the Premises or any part of them at any time and even if any
previous right of re-entry has been waived and then the Term will absolutely
cease but without prejudice to any rights or remedies which may have accrued
to the Landlord against the Tenant in respect of any breach of covenant or
other term of this Agreement including the breach in respect of which the re-
entry is made.

6.2. The Tenant may terminate the Tenancy hereby created by giving the Landlord
or its duly appointed agent one (1) month’s written notice of such wish to
terminate or make a payment of One (1) month’s Rent in lieu of such notice.

6.3. This Tenancy shall be deemed to be, automatically terminated on

determination of the Term if the Tenant shall not have expressed interest to
renew the Term.

7. Provisos

7.1 If and whenever during the Term the Rent or any part of it is outstanding for
fourteen (14) days after becoming due whether formally demanded or not the
Tenant shall pay to the Landlord interest on the rent payable at the Interest
Rate until payment in full.
7.2 No liability shall attach in respect of any breach of any positive covenant
(other than covenants for the payment of Rent) on the part of the Landlord or
the Tenant contained or implied in this Agreement so long as they are

10
 prevented from performing the covenant by statutory restrictions, non-
availability of labour or materials or matters beyond their control except that if
breach of any positive covenant occurs, the Landlord or Tenant as the case
may be shall remedy the breach immediately conditions permit and in the
event of any breach on the part of the Tenant not having been remedied before
the expiration or sooner determination of the Term the Tenant shall forthwith
upon the expiration or sooner determination of the Term pay to the Landlord
such an amount as is necessary to remedy the breach.
7.3 If and whenever during the Term the Premises or any part thereof is: -
a) damaged or destroyed by one or more of the Insured Risks; or
b) rendered non-operational or inaccessible for any reason including
road improvements and/or construction,

so that the Premises or any part thereof is rendered unfit for occupation or use
the Landlord shall allow to the Tenant a total or proportionate abatement of
the Rent hereby reserved as the case may be.

7.4 Each of the Tenant's covenants shall remain in full force notwithstanding that
the Landlord shall have temporarily waived or released any such covenant.
7.5 This Agreement embodies the entire understanding of the parties relating to
the Premises and to all matters dealt with by any of the provisions of this
Agreement.
7.6 Any notice or communication under or in connection with this Agreement shall
be in writing and shall be delivered personally or by post, email to the
addresses indicated on the introduction clause herein or to such other address
as the recipient may have notified to the other party in writing. Proof of
posting or dispatch shall be deemed to be proof of receipt.

8. Amendments

No provision of this Agreement shall be waived or varied by either party hereto

except by an instrument in writing.

9. Applicable Law

This Agreement and its performance shall be governed by and construed in all
respects in accordance with the Laws of Kenya. The parties hereby
irrevocably submit to the non-exclusive jurisdiction of the High Court of
Kenya but this Agreement may be enforced in any court of competent
jurisdiction.

10. Acceptance

The Tenant accepts this Agreement subject to its covenants, conditions,

restrictions and stipulations.

11
IN WITNESS WHEREOF the parties have executed this Agreement on the day
and year hereinbefore mentioned.

12
Signed by the Landlord the said )

SEALED with the Common Seal of the )

Landlord, [*]4 )

in the presence of: - )

Director )

Name: - )

Signature: - )

Director/Company Secretary )

Name: - )

Signature: - )

Before me: )

)
Advocate )

Certificate of Attestation
I CERTIFY that the above named [*] and [*] both directors/a director and
secretary of the Landlord appeared before me on the [*] day of [*], 20[*], and
being known to me/identified by [*], acknowledged the above signatures to be
theirs and that they had freely and voluntarily witnessed the affixation of the
Landlord’s common seal on this Agreement for Sale and understood its contents.
………………………………………..……………..
Advocate of the High Court of Kenya

4
Insert name of Landlord.

13
Signed by the Tenant the said )

SEALED with the Common Seal of the )

Tenant, [*]5 )

in the presence of: - )

Director )

Name: - )

Signature: - )

Director/Company Secretary )

Name: - )

Signature: - )

Before me: )

)
Advocate )

Certificate of Attestation
I CERTIFY that the above named [*] and [*] both directors/a director and secretary
of the Tenant appeared before me on the [*] day of [*], 20[*], and being known to
me/identified by [*], acknowledged the above signatures to be theirs and that they
had freely and voluntarily witnessed the affixation of the Tenant’s common seal on
this Agreement for Sale and understood its contents.
…………………………..…………………………..
Advocate of the High Court of Kenya

5
Insert name of Tenant.

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