All templatesLOAN AGREEMENT
THIS AGREEMENT is made on 1 October 2026.
BETWEEN:
(1) PEMBENI CAPITAL LIMITED of P.O. Box 30211-00100, Nairobi (the Lender); and
(2) RIFT VALLEY HORTICULTURE EXPORTERS LIMITED of P.O. Box 1284-20100, Nakuru (the Borrower).
RECITALS
(A) The Borrower has asked the Lender for a loan of KES 8,500,000.
(B) The Lender has agreed to lend that amount to the Borrower on the terms of this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In this Agreement, unless the context otherwise requires:
(a) Loan means the principal amount of KES 8,500,000 lent by the Lender to the Borrower under this Agreement, or so much of it as is outstanding at any time;
(b) Interest Rate means 12% per annum;
(c) Event of Default means an event listed in clause 7;
(d) Business Day means a day other than a Saturday, a Sunday or a public holiday in Kenya;
(e) Security means the security described in clause 5;
(f) Security Documents means the documents creating the Security, namely the first legal charge over the Borrower's property known as L.R. No. 209/11854 situate in Nairobi and the personal guarantee from the Borrower's director, Peter Njoroge Mwangi, together with any document registered or filed in respect of that charge or that guarantee.
2. The Loan
2.1 The Lender shall lend to the Borrower, and the Borrower shall borrow from the Lender, the principal amount of KES 8,500,000 (Kenya Shillings eight million five hundred thousand).
2.2 The Lender shall advance the principal amount to the Borrower in one amount on the signing of this Agreement and the delivery to the Lender of the signed Security Documents.
2.3 The Borrower shall acknowledge receipt of the principal amount in writing.
3. Interest
3.1 The Borrower shall pay interest on the Loan at the Interest Rate, that is 12% per annum, from the date the Lender advances the Loan until the Loan is repaid in full.
3.2 Interest is simple interest: it is charged on the principal outstanding and is not added to the principal.
3.3 Interest is calculated on the days elapsed and a year of 365 days.
4. Repayment
4.1 The Borrower shall repay the Loan in accordance with the repayment schedule set out in this clause.
4.2 The Loan is repayable in twenty-four (24) equal monthly instalments of KES 397,708 each, commencing on 1 November 2026 and continuing on the first day of each succeeding month, with the entire outstanding balance falling due on 1 October 2028.
4.3 All payments under this Agreement shall be made in Kenya Shillings in cleared funds, without set-off or deduction of any kind.
4.4 Each payment made by the Borrower shall be applied first to interest then due and thereafter to the principal outstanding.
4.5 Where a payment falls due on a day that is not a Business Day, that payment shall be made on the next Business Day.
5. Security
5.1 The Loan is secured by a first legal charge over the Borrower's property known as L.R. No. 209/11854 situate in Nairobi, together with a personal guarantee from the Borrower's director, Peter Njoroge Mwangi.
5.2 The Security is created by separate Security Documents, being the charge over the property described in clause 5.1 and the personal guarantee described in clause 5.1, which the Borrower shall sign, or procure the signature of, and shall have registered wherever the law requires registration.
5.3 The Security continues in force until the Loan and all interest on it are repaid in full.
5.4 On repayment in full of the Loan and all interest, the Lender shall release the Security.
6. Representations and Warranties
6.1 The Borrower represents and warrants that it has full power and authority to enter into and perform this Agreement.
6.2 The Borrower represents and warrants that its obligations under this Agreement are binding on it.
Money and debts
Loan agreement template (Kenya)
Also called: Loan Agreement
What it is for
Lending or borrowing money, with the repayment terms in writing.
The Kenyan law it follows
- Law of Contract Act Cap 23
- Banking Act Cap 488 — s.44A (limit on what an institution may recover on a non-performing loan)
- Microfinance Act 2006
- Stamp Duty Act Cap 480
Who prepares it
You can prepare this yourself. It is still wise to have an advocate read it before you sign, especially where a lot of money or a long commitment is involved.
Fill this in with your own details
Answer a few questions and Lex prepares the document for you, ready to download in Word. A free account is needed.
Sample loan agreement
The first part of the sample is shown here. The names, amounts and facts are made up to show how the document reads.
The rest of this loan agreement is for Lex members
Create a free account to read the whole sample, fill it in with your own details and download it in Word.
This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.