TENANCY AGREEMENT

DATED 201

FROM

MIKE MUSHO AGENG’O

(THE “LANDLORD”)

TO

DAASANACH CONSTRUCTION LIMITED

(THE “TENANT”)

IN RESPECT OF

PROPERTY LAND REFERENCE NUMBER 12494/40

(THE “PREMISES”)

Drawn By:

Sichangi Partners Advocates

National Head Office
Top Centre/SG21/ No.31/33,
Muthithi Road, Westlands
P.O.Box 33223-00600
NAIROBI
conveyance@sichangi.com
www.sichangi.com
(Our Ref: LHUD/IND/78/17)
 TENANCY AGREEMENT

THIS AGREEMENT is made the .....................day of..........................Two Thousand and.................................

BETWEEN:-

1. MIKE MUSHO AGENG’O of Post Office Box Number 55232-00200 Nairobi (hereinafter called
the “Vendor” which expression shall where the context so admits include his personal
representative and assigns) of the one part; and

2. DAASANACH CONSTRUCTION LIMITED of Post Office Box Number 78607-00507 Nairobi

(hereinafter called the “Purchaser” which expression shall where the context so admits include its
successors-in-title and assigns) of the other part.

WHEREAS:-

A. The Vendor is the registered proprietor as lessee from the Government of the Republic of Kenya
of ALL THAT piece of land situate in the City of Nairobi in the Nairobi area containing by
measurement Nought decimal one six five five (0.1655Ha) of a hectare or thereabouts and being
Land Reference Number 12494/40 (Original Number 12494/2/7) which said piece of land is with
the dimensions abuttals and boundaries thereof delineated shown and described in the Land
Plan Survey Number 289156 annexed to the Certificate of Title registered in the Land Titles
Registry at Nairobi as Number I.R. 116790/1 and deposited in the Survey Records Office at
Nairobi together with all the buildings, fixtures, fittings, additions and improvements from time
to time erected and being thereon;

B. The Landlord has pursuant to an Agreement for Sale dated………..day of …………….20….

agreed to rent the said premises to the Tenant herein for a term, a rent consideration and subject
to the covenants , agreements, conditions, restrictions, stipulations and provisions hereinafter
contained.

NOW THIS AGREEMENT WITNESSETH as follows:-

1. DEFINITIONS AND INTERPRETATION

The Landlord : Includes the persons for the time being entitled in reservation expectant on
the tenancy.

The Tenant : Includes the persons deriving title under the Tenant.

The Premises : Comprises of the hereinbefore defined property inclusive of a

mansionette and a guest house erected thereon (including all fixtures
and fittings therein together with entrance halls, stairs landing,
driveway, Car Park and passages for the purposes only of egress from
and ingress to the property) and areas provided.
The Term : This tenancy agreement shall be deemed to be for a Term subject to
completion of the Agreement for Sale dated………..day of ……….20….
(The “Agreement for Sale”) and shall remain in force until termination
by either party as stipulated under clause 7.

The Rent : Kenya Shillings……….Thousand (Kshs………) only clear of any

deductions whatsoever payable in one lump sum installment to the
Landlord or the Landlord’s agent before execution hereof by direct credit
to the landlord’s Bank Account as shown below (receipt of which is
hereby acknowledged);-

Account Name: MIKE MUSHO AGENG’O

Bank: XXXXXXXXXXX

Account Number: XXXXXXXXXXX

Service Charge : Such amount as shall be determined by the Landlord payable in the
same manner as the rent.

2. Agreement

2.1 It is hereby agreed that the Landlord lets and the Tenant takes the Premises for a Term
subject the terms and conditions of the Agreement for Sale.

2.2 This Agreement incorporates the Letting Provisions detailed below.

3. Letting Provisions

The Tenant will:

3.1.1 Pay the Rent together with the Service Charge in the manner specified above direct to the
Landlord’s Bank Account.

3.1.2 Pay to the Landlord and (maintain) a deposit equal to One (1) month rent and Service
Charge (for the time being) to be held by the Landlord throughout the Term as security for
the due performance by the Tenant of the covenants, agreements, restrictions, stipulations,
and provisions herein contained and also to deposit such further sums of money throughout
the said term as shall be necessary to ensure that the amount of the said deposit shall not at
any time be less than one month’s rent payable from time to time as hereinbefore provided
and reserved. The Deposit or the balance thereof shall be repaid to the Tenant without
interest at the expiry or sooner determination as hereinafter provided of the Term after
payment by the Tenant of all sums then owing by the Tenant to the Landlord and the
discharge by the Tenant of all obligations of the Tenant hereunder. For good cause, the
Landlord may demand an additional month’s deposit by giving the tenant one month’s
notice, to increase the deposit from One month (1) to two (2) months’ rent.
3.1.3 Pay the respective deposits (if not already done) to the Kenya Power and Lighting Company
Limited and the Nairobi City Council (if so desired by tenant) for the connection of
electricity and water services respectively and thereafter pay for all electricity, water and
conservancy which shall be consumed on or supplied to the Premises during the tenancy and
pay all charges made for the use of the telephone (if any) on the Premises during the tenancy
and, will give copies of paid up bills for all these services to the Landlord every three (3)
months..

3.1.4 Not to overload any electricity supply or equipment.

3.1.5 Use the Premises in a tenant-like manner for a private residential dwelling only and not carry
on or permit to be carried on the Premises any trade or business of any kind whatsoever, and
not to allow an excessive number of people in the premises which would exceed a reasonable
number of occupants for similar dwelling houses.

3.1.6 Not damage or injure the Premises or make any alteration in or addition to it (including
boundary walls and any fences) and will not cut or remove any plants without the prior
written consent of the Landlord.

3.1.7 Keep the interior of the buildings on the Premises including all fittings and fixtures in good
repair and condition, fair wear and tear excepted, and will replace with articles of a similar
quality all items which shall be lost, broken or damaged during the tenancy.

3.1.8 Cultivate the garden or growing plants (if any) of the Premises and keep the same in good
order and condition and will not alter the established lay out of the same.

3.1.9 Permit the Landlord or the Landlord’s Agents at any arranged time to enter the Premises to
view the state and condition thereof.

3.1.10 Timeously execute all repairs for which the Tenant is liable at all times without demand or
notice by the Landlord and shall do so in accordance with any notice given by the Landlord
or the Landlord’s Agents after inspection of the Property as aforesaid.

3.1.11 Permit the Landlord or the Landlord’s Agent during the last two (2) months of the tenancy to
exhibit, in any other suitable place, a notice advertising the Premises as being let and, during
this period, will allow all persons holding an order to view the Premises.

3.1.12 On termination of the tenancy, paint all those parts of the interior of the Premises as are
usually painted with two coats of good paint and will grain, varnish and colour all such parts
as are usually so dealt with in a proper and workmanlike manner to the reasonable
satisfaction of the Landlord or the Landlord’s Agents and in the same colour scheme as at the
time of taking occupation.

3.1.13 Make periodic inspections of the Premises and report immediately in writing to the Landlord
any apparent defects in the structure of the Premises and any signs of ants, bees, termites or
any other destructive insects or any signs of wet or dry rot.

3.1.14 Not assign, underlet, charge or part with possession of the Premises (or any part thereof)
without the prior written consent of the Landlord, which consent shall be entirely at the
Landlords discretion.
 3.1.15 Not to do or suffer to be done on the Premises anything which may be or become a nuisance
or annoyance to the Landlord or the tenants or occupiers of any adjoining premises or which
may vitiate any insurance of the Premises against fire or otherwise or increase the ordinary
premium for such insurance, and not to bring or keep any animals cats, dogs chicken or birds
on the premises.

3.1.16 (i) In the event of failure to pay the said rent, or any other sum due under this lease within
Five (5) days of the due date whether formally demanded or not the tenant shall pay to
the Landlord an automatic default sum and interest on the overdue amount from the due
date to the date of actual payment, provided that nothing in this covenant shall entitle
the Tenant to withhold or delay any payment of the said rents or any other sums due
under this Agreement after the date on which it falls due.

3.1.16.1 The automatic default sum shall be at the rate of 2% above the base rate of
Central Bank of Kenya as published from time to time until the aggregate amount
so payable shall be recoverable as rent arrears. PROVIDED THAT the payment
of such default sum and interest shall not in any way prejudice the Landlord’s
right and other cause of action by way of termination, re-entry or distress.

3.1.17 Notify the Landlord of an intention to leave the Premises unoccupied for a period of more
than seven (7) days

3.1.18 Not to permit an unreasonable number of people to assemble on the Premises for any large
activity or function without the prior written consent by the landlord.

3.1.19 Not to hang, air any clothes, or store any items of furniture, equipment, containers or other
things other than in places designated and provided for that purpose by the land, and shall
particularly not air any clothes or store anything on the front verandah, or balcony of the
premises, and or place or fix any sting, or wires for that purpose in such places.

3.1.20 Not to lay or fix any telephone or television cables on the premises except in the manner
directed by and with the prior consent of, the landlord.

3.1.21 Yield up the Premises at the end of the tenancy in good and tenantable repair.

4. The Landlord agrees with the tenant as follows:-

4.1.1 To permit the Tenant peaceably and quietly to possess and enjoy the Premises without any
unlawful interruption from the Landlord or any person claiming under or in trust for the
Landlord.

4.1.2 To keep the roof, main walls and main timbers and the outside of the buildings and common
areas on the Premises and the outside water and sanitary apparatus in good and tenantable
repair and condition.

4.1.3 To pay the Rates, Government Land Rent and all other taxes and charges now or hereafter
payable in respect of the Premises.
 4.1.4 To be responsible for the electrical wiring and electrical apparatus comprised in and forming
part of the main entrance circuits of the Premises and to make good promptly any defect or
default discovered in the same.

4.1.5 In consideration of the service charge paid, arrange for security guards or company for the
compound, keep the external areas of the Premises clean and undertake the gardening in the
common areas, provided that by arranging such security the landlord shall not constitute
itself an insurer of the tenant’s property, nor shall it be liable under any circumstances for
any loss or damage howsoever occurring to the tenants property on the premises.

5. Provisos

5.1.1 (i) If the Rent is outstanding for more than five (5) days or more after becoming due
whether formally demanded or not or if the Tenant fails to perform and observe any of
the agreements herein contained or implied, it shall be lawful for the Landlord at any
time thereafter to enter into the Property and to repossess it without prejudice to any
right of action or remedy of the Landlord in respect of any antecedent breach of any of
the covenants herein contained or implied, and without prejudice to the landlords
remedy under the distress for rent Act.

5.1.1.1 The tenant shall insure his personal and house hold 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.

5.1.1.2 Any notice required to be served herein shall be sufficiently served upon either
party if forwarded to that party by registered post or left at the party’s last
known address in Kenya. A notice to the tenant may be left at the premises. A
notice sent by post shall be deemed to be given five (5) days after the date of
posting thereof.

5.1.1.3 Should the tenant wrongfully remain in possession beyond the term, or fail to
carry out repairs not later than the last of the tenancy period the tenant shall be
liable to pay liquidated damages of Kshs……….. per day until full possession is
yielded to the landlord or as the case may be, until repairs are fully carried out.

5.1.1.4 Any delay by the landlord in exercising any right hereunder shall not be deemed
to be a waiver of such rights in any way.

5.1.1.5 The Landlord reserves the right to carry out renovations, alterations and
improvements on other parts of the building, and such shall be done at
reasonable times, but shall not be regarded as nuisance for the purposes of this
tenancy agreement. Tenants will be notified in writing of such works and period
to be taken.

5.1.2 For the avoidance of doubt, the deposit paid shall not be treated as rent for the last
months of the tenancy or any part thereof, and the same shall be refunded to the tenant
upon the tenants’ full compliance with the covenant herein after possession is yielded up.
6. Termination

6.1 This Agreement shall terminate on the later of:-

a) Completion date as defined in the Agreement for Sale

b) Date of Payment of the full Purchase price under the Agreement for Sable provided that this
Agreement shall automatically terminate in the event that the Agreement for Sale is
terminated for any reason.

6.2 Provided that any such notice that is given at any date after the first day of the calendar month
shall be deemed to take effect from the first day of the calendar month next following expiration of
the period of such notice.

6.3 Upon issuance of proper notice, this agreement shall cease and determine but without prejudice
to any right of action accrued to either party during the currency of the agreement.

7. This provisions will only apply where the tenant takes possession of the premises without the full
completion of the Agreement for Sale stated herein.
IN WITNESS WHEREOF the parties have executed this Agreement, the year and date hereinabove
written.

THE LANDLORD
Signed by MIKE MUSHO AGENG’O )
)
In the presence of )
) )
)
Passport Size )
) Signature…………………………
Photographs
) ID No……………………………..
) PIN No…………………….......
)
)
)
)
)

Certificate of Attestation
I certify that MIKE MUSHO AGENG’O the LANDLORD appeared before me on the day of
201… and being known to me acknowledged the above signature or mark to be hers and
that she had freely and voluntarily executed this instrument and understood its contents.I further certify
that the above coloured passport size photograph is a true likeness of the above named person and that I
have authenticated her PIN Number on this instrument.

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SIGNATURE & DESIGNATION OF PERSON CERTIFYING
THE TENANT
SEALED with the COMMON SEAL of )
DAASANACH CONSTRUCTION LIMITED )
in the presence of:- )
)
)
)
Passport Size ) Common seal
Photographs )
)
)
)
)
Director )
Name: )
ID No. …………………………… )
PIN No. …………………………………… )
Signature…………………….. ……………. )
)
)
)
Passport Size )
Photographs )
)
)
)
)
)
Director/Secretary )
Name: )
ID No. …………………………… )
PIN No. …………………………………… )
Signature…………………….. ………… )
)
)
)

Certificate of Attestation
I certify that DAASANACH CONSTRUCTION LIMITED the TENANT appeared before me on the
day of 201… and being known to me acknowledged the above signature or mark to be
his and that he had freely and voluntarily executed this instrument and understood its contents.I further
certify that the above coloured passport size photograph is a true likeness of the above named person and
that I have authenticated his PIN Number on this instrument.

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SIGNATURE & DESIGNATION OF PERSON CERTIFYING
Drawn By:-

Sichangi Partners Advocates

Nairobi Office
No: 31/33 Muthithi Road Westlands
P.O. Box 33223- 00600
Nairobi- Kenya
services@sichangi.com
www.sichangi.com