Commercial lease in Kenya: Template, Key Clauses and Local Law (2026)

What is a commercial lease in Kenya, and what does the law require? A commercial lease in Kenya is a contract under which a landlord grants a tenant the right to occupy and use business premises for a term in return for rent. It is governed by the general law of contract together with the land statutes, chiefly the Land Act 2012 and the Land Registration Act 2012, and, for many business tenancies, by a special protective statute, the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301). Two local points matter from the start. First, Cap 301 and controlled tenancies. A business tenancy for shops, hotels or catering establishments is a "controlled tenancy" if it is not in writing, or if it is in writing but runs for no more than five years, or if it allows termination within five years other than for breach. A controlled tenancy cannot simply be ended on the contractual notice. The landlord must follow the Act's procedure, giving a prescribed notice and allowing the tenant to object to the Business Premises Rent Tribunal, which protects the tenant against arbitrary eviction or rent increases. If you want a lease outside this regime, it generally needs to be in writing and run for more than five years with no early break other than for breach. Second, formalities and registration. A lease for a longer term should be in writing and registered under the Land Registration Act 2012 to bind third parties, and it attracts stamp duty, so plan for stamping and registration. This article is general information, not legal advice. Land rules and the controlled tenancy regime turn on the facts, so confirm the position with a Kenyan advocate. Last verified October 2026. ## A Kenya commercial lease template you can copy ```

LEASE AGREEMENT This Lease is made on [DATE] BETWEEN: [LANDLORD NAME], of [address] ("Landlord") AND [TENANT NAME], of [address] ("Tenant") 1. PREMISES The Landlord leases to the Tenant the premises at [full address, LR number and description, including any parking and shared areas] (the "Premises"). 2. PERMITTED USE The Tenant may use the Premises only for [permitted business use] and must comply with planning, zoning, licensing and county requirements. 3. TERM The lease runs for [N] years from [commencement date]. [To fall outside Cap 301, a term of more than five years with no early termination other than for breach is usually required.] [Renewal option: the Tenant may renew for [N] years on [N] months notice.] 4. RENT AND REVIEW Rent is KES [amount] per month, payable in advance by the [N]th of each month. Rent is reviewed [every N years to [open market / a stated increase]]. [State whether VAT applies.] 5. DEPOSIT AND SERVICE CHARGE The Tenant pays a deposit of KES [amount], refundable at the end of the term less lawful deductions, and a service charge of KES [amount] for [common area services]. 6. OUTGOINGS AND UTILITIES The Tenant pays for [electricity, water, waste, and its share of common costs]. [State who bears land rates and rent to the county.] 7. REPAIR AND MAINTENANCE The Landlord keeps the structure and roof in repair. The Tenant keeps the interior in good order and makes good damage it causes, fair wear and tear excepted. 8. ALTERATIONS The Tenant may not alter the Premises without the Landlord's prior written consent. [State the position on fixtures at the end of term.] 9. INSURANCE The Landlord insures the building. The Tenant insures its contents, stock and public liability, and provides proof on request. 10. ASSIGNMENT AND SUBLETTING The Tenant may not assign or sublet without the Landlord's prior written consent, which will not be unreasonably withheld. 11. STAMPING AND REGISTRATION The Tenant will stamp and, where required, register this Lease under the Land Registration Act 2012. [Allocate the costs.] 12. TERMINATION AND REMEDIES If the Tenant breaches and fails to remedy within [N] days of written notice, the Landlord may re-enter and determine the lease through due legal process. [For a controlled tenancy, the Cap 301 procedure applies.] 13. GOVERNING LAW This Lease is governed by the laws of Kenya. Signed: Landlord: __________ Tenant: __________ Name / capacity / date Name / capacity / date

- **Term and Cap 301 (clause 3).** The term decides whether the lease is a controlled tenancy. A lease of five years or less, or one with an early break other than for breach, falls under Cap 301 and its tribunal protections. A lease of more than five years with no early break other than for breach generally sits outside the regime. Choose the term with this in mind.
- **Rent and review (clause 4).** Set the review mechanism clearly, whether open market or a fixed increase, and say whether VAT applies. For a controlled tenancy, a rent increase is subject to the Act's process and the tribunal.
- **Stamping and registration (clause 11).** A longer lease should be in writing, stamped and registered under the Land Registration Act 2012 to bind third parties. Decide who pays and who drives the process.
- **Assignment and subletting (clause 10).** A tenant who may restructure or move should secure consent that is not to be unreasonably withheld.
- **Termination (clause 12).** For a controlled tenancy you cannot simply serve the contractual notice. You must follow the Cap 301 procedure and the tenant can take the matter to the Business Premises Rent Tribunal. Recovering possession otherwise needs due legal process. ## Red flags to watch for - **Assuming you can evict on contractual notice.** If the tenancy is controlled under Cap 301, the Act's procedure and the tribunal apply, and a landlord cannot simply end it on the lease terms. Check whether the tenancy is controlled.
- **An oral or short lease without realising the consequence.** An unwritten lease, or one of five years or less, is likely a controlled tenancy by default, with the protections that brings.
- **No stamping or registration for a long lease.** An unregistered long lease may not bind third parties, and an unstamped lease can face admissibility problems. Stamp and register where required.
- **Vague rent review.** A review "to be agreed" with no fallback can fail for uncertainty. Give a mechanism.
- **Self-help eviction.** Locking a tenant out or cutting services is unlawful. Follow the notice and, for a controlled tenancy, the tribunal process. ## A note on jurisdiction and current law A Kenyan commercial lease sits on the Land Act 2012, the Land Registration Act 2012, the general law of contract and, for many business tenancies, the protective regime in the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act (Cap 301), enforced through the Business Premises Rent Tribunal. Whether a tenancy is controlled, and the stamping and registration steps, turn on the term and the premises. Confirm the position with a Kenyan advocate before you commit. Adira is built around Indian corporate law first and is architected to expand. Deeper, verified Kenyan property and lease coverage is on the roadmap rather than live today, so use this template as a sound starting point and have local counsel check the controlled tenancy position and registration. ## Where a contract workspace helps A commercial lease carries a chain of steps and dates: stamping, registration, the rent review, the renewal notice window, and, for a controlled tenancy, the Cap 301 notice periods. Miss the renewal notice and a business can lose premises it depends on. Miss a procedural step and a termination can fail. The work that outlasts signing is tracking those steps and dates and keeping the lease, its schedules and any variations together. Keeping the drafting, the key dates and the version history in one AI workspace tuned to how your company leases means the review, renewal and procedural steps stay visible and the terms stay consistent, with edits made in plain language. [Adira](https://adiralaw.com) is one workspace built to hold a lease and its deadlines together. The template above is enough to prepare a fair Kenyan commercial lease on its own. *This article is general information, not legal advice. Land rules, the controlled tenancy regime and registration turn on the facts and change, so have a qualified Kenyan advocate review anything important. Last verified October 2026.*