KENYA Law and Practice Contributed by: Anne Kinyanjui and Bonface Abuya, DLA Piper Africa, Kenya (IKM Advocates)
6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Leases Leases for a term of less than 21 years grant the ten - ant the right to the exclusive use and quiet enjoyment of the leased premises for the lease term. The same is true for leases that have longer terms but do not confer ownership. Licences A licence is a permit granted to the licensee to do some act in relation to the real estate (on a non-exclu - sive basis) that would otherwise constitute trespass. Easements An easement is a non-possessory interest in another’s land that allows the holder to use the land (or a portion of it) to a particular extent or requires the owner to undertake or refrain from undertaking an act relating to the land. Public Rights of Way This could be a wayleave or a communal right of way. The NLC may authorise a wayleave for the benefit of the national or county government, a public authority or any corporate body to enable them to carry out their functions in relation to the land. The NLC may also authorise a communal right of way for the benefit of the public upon application by a county govern - ment, an association or any group of persons. 6.2 Types of Commercial Leases The LA provides for the following types of leases. Short-Term Leases The LA defines a short-term lease as a lease for a term of two years or less without an option for renewal. A short-term lease is also a periodic lease. Periodic Leases The following are periodic leases: • leases of an unspecified term with no provision for the giving of notice to terminate the tenancy;
LLPs LLPs are required to:
• file annual returns with the registrar of LLPs; • maintain registers of partners, nominee partners and beneficial owners; and • maintain accounting records pertaining to the LLP’s business, such as invoices. Unless required under their partnership agreements, LLPs are not obliged to convene any meetings, nor to procure an audit on their accounts except during the winding-up and dissolution of the partnership. LLPs are also not required to file tax returns. REITs A REIT is required to: • maintain a register of REIT security holders; • convene an annual meeting of REIT security hold - ers between 14 and 28 days after the circulation of the annual report; • procure an annual audit of its accounts; • remit and file tax returns in respect of WHT deduc - tions on the payments to investors; and • submit a copy of the first half financial year reports and accounts, the REIT’s annual report and audited accounts to the CMA. The REIT trustee and the REIT manager are respon - sible for maintaining proper records in respect of the fund, the scheme and the REIT. 5.6 Annual Entity Maintenance and Accounting Compliance Nominal fees for annual entity maintenance are pay - able at the companies registry and the LLP registry for LLCs and LLPs, and at the land registry for trusts licensed as REITs. For REITs, additional compliance costs are incurred towards the renewal of the licences of the REIT trustee and REIT manager, and approval fees for any public offerings. The fees are paid to the CMA. For accounting compliance, the costs will depend on the terms of engagement negotiated with the retained accounting firm.
399 CHAMBERS.COM
Powered by FlippingBook