KENYA Law and Practice Contributed by: Anne Kinyanjui and Loice Erambo, DLA Piper Africa, Kenya (IKM)
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 tenant 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 long - er 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-exclusive basis) that would otherwise con - stitute 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 bene - fit 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 government, 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 provi - sion for the giving of notice to terminate the tenancy; • leases whose term is from week to week, month to month or year to year, or is any other periodic basis to which the rent is pay - able; • where a tenant remains in possession of land with the consent of the landlord after the term of the lease has expired, unless the parties agree otherwise; or • where an owner allows exclusive occupation of their land or part thereof for rent but with - out there being any agreement in writing. Long-Term Leases A lease is long term if it is for a period over two years. Leases of a period of 21 years and above may confer an ownership interest to the lessee. Future Leases Future leases are leases for a term that is to begin on a future date not being later than 21 years after the date on which the lease is execut - ed. A future lease for a period above five years must be registered. 6.3 Regulation of Rents or Lease Terms The terms of a lease, including the rent amount, are negotiated by the parties. However, Sections
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