Commercial Tenancy Agreement Kenya

C. Tenants and landlords charge a policy or policy after B.C. for the respective general liability insurance for the respective activities of each building with premiums paid in full at maturity and paid by an insurance company approved by the lessor and are mandatory for this insurance in order to ensure minimum protection of at least 1,000,000 USD with a single personal injury coverage. , property damage or combination. The landlord is listed as an additional insured in the rental policy or in general liability insurance, and the tenant provides the lessor with up-to-date insurance certificates guaranteeing compliance with this paragraph by the tenant. The tenant receives the consent of the tenant insurers to inform the landlord that a policy must expire at least (10) days before. The landlord is not required to maintain insurance against theft in the rental premises or in the building. While there is really nothing magical about five years and three months, this rather excessive delay is normally inserted into the rental agreement by the landlord, most likely on the advice of his lawyers, all in an effort to exempt the lease from qualifying as a controlled lease. A controlled lease agreement can simply be defined as a tenancy agreement with a term of no more than five years, or a clause allowing a termination within five years. Controlled rental contracts are subject to the Landlords and Tenants Act (shops, hotels and restaurants). This law was enacted primarily to protect businessmen from unnecessary nuisances from landlords, perhaps to facilitate the flow of business. The law provides, among other things, that a landlord cannot increase the rent or terminate a tenancy agreement without the authority of the Business Premise Rent Control Tribunal, established under the law. In general, this law deprives the owner of certain rights to his property to protect the tenant.

It is therefore not surprising that commercial real estate owners are still trying to avoid the application of the law by removing all the provisions of the lease that would give it the character of a controlled lease. There are many business reasons that may require the termination of a commercial lease before the expected term. One very often is that your business has not been as successful as you had anticipated. On the other hand, you may find yourself needing to break a lease just because your business is so good that you need expansion. Very innocent, you approach your landlord and intimate that you want to terminate the lease.

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