All templatesLOAN REFERRAL AND SALARY CHECK-OFF AGREEMENT
THIS AGREEMENT is made on 1 November 2026
BETWEEN
(1) PAYA CREDIT LIMITED (the Lender); and
(2) GLOBAL HR SOLUTIONS LIMITED (the HR Company).
RECITALS
(A) The parties wish to work together for the purpose of offering loans to the employees of the companies the HR Company manages payroll for, repaid by deductions from their salaries.
(B) The parties have agreed to do so on the terms of this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In this Agreement, unless the context otherwise requires:
(a) "Agreement" means this Loan Referral and Salary Check-off Agreement, as amended in writing from time to time;
(b) "Business Day" means a day other than a Saturday, a Sunday or a public holiday in Kenya; and
(c) "Parties" means the two parties to this Agreement, each a "Party".
2. Purpose
2.1 The purpose of this Agreement is the offering of loans to the employees of the companies the HR Company manages payroll for, repaid by deductions from their salaries.
2.2 The Parties shall act in good faith towards each other in carrying out the purpose of this Agreement.
3. Obligations of the Lender
3.1 The Lender shall:
(a) receive loan applications made on its website;
(b) give the final approval of each loan;
(c) pay each approved loan to the employee within 2 working days;
(d) send the HR Company a schedule of the deductions due by the 20th day of each month.
4. Obligations of the HR Company
4.1 The HR Company shall—
(a) confirm that each applicant is an employee and what the applicant earns;
(b) approve or decline each application within 3 working days;
(c) deduct each instalment from the employee's salary and pay it to the Lender by the 5th day of the following month;
(d) tell the Lender within 7 days when a borrower resigns or is dismissed.
5. Payments
5.1 The Lender shall pay the HR Company a fee of KES 500 for each loan disbursed, payable monthly in arrears.
6. Risk and Liability
6.1 The Lender bears the loss where an employee leaves with an unpaid balance.
6.2 The HR Company bears any amount it deducted from a salary and did not pay over.
7. Other Persons
7.1 Each employee who borrows signs a separate loan agreement with the Lender and a written authority allowing the deductions from salary.
7.2 A person who is not a party to this Agreement acquires no right under it, and is bound only by a document that the person signs.
8. Confidentiality
8.1 Each Party shall keep confidential the information of the other Party that it receives under this Agreement and shall use that information only for the purpose of this Agreement.
8.2 Sub-clause 8.1 does not apply to information that is public, or to information that a Party is required by law or by a court to disclose.
8.3 The duty of confidentiality in this clause continues after this Agreement ends.
9. Term and Termination
9.1 This Agreement starts on its date and continues for a term of 2 years unless it is ended earlier under this clause.
9.2 Either Party may end this Agreement by giving the other written notice of 60 days.
9.3 Either Party may end this Agreement at once by written notice if the other commits a material breach and does not put it right within 14 days of being asked in writing to do so.
Business and deals
An agreement written for your situation template (Kenya)
Also called: Purpose-Built Agreement
What it is for
When you and the other side are doing something none of the agreements here quite fits.
The Kenyan law it follows
- Law of Contract Act Cap 23
- Arbitration Act Cap 49
Who prepares it
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