Commercial Loan Agreement (Kenya) Template

Kenya-style commercial loan between a lender and a borrower business.

Use this free commercial loan agreement (kenya) template to create, fill in and sign a commercial loan agreement (kenya) online. Send to the other party for a legally binding signature — tamper-evident audit trail included.

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COMMERCIAL LOAN AGREEMENT

This Loan Agreement is made on [date] between [lender name] ("Lender") and [borrower name] ("Borrower"), both having places of business in the Republic of Kenya.

1. Loan Amount

Lender will advance KSh [loan amount] to Borrower on or before [disbursement date] by transfer to [borrower bank details].

2. Interest

Interest accrues at [interest rate pct]% per annum on the outstanding balance. Default rate (post-default): [default rate pct]% per annum. In-Duplum applies.

3. Repayment

Borrower repays in [installment count] equal installments of KSh [installment amount], starting [first installment date]. Final repayment date: [final repayment date]. Payments are without set-off.

4. Security

The Loan is secured by: [security description] (e.g. charge over land registered as [lr number], chattels mortgage over assets listed in Schedule A).

5. Representations & Warranties

Borrower represents that it is duly incorporated in Kenya, has full power to enter this Agreement, and that the Loan does not breach any other obligation.

6. Events of Default

Failure to pay any installment within [cure period days] days of the due date, insolvency, or material breach gives Lender the right to accelerate the Loan and enforce security.

7. Governing Law

This Agreement is governed by the laws of the Republic of Kenya. Disputes are referred to the courts at Nairobi.

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