Property & Landlord

Licence to Occupy

A Licence to Occupy grants permission to use a property without creating a tenancy. Commonly used for short-term or informal occupation arrangements in Kenya.

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What this document covers

Licensor and licensee details
Property address
Permitted use of the property
Licence fee if any
Duration and termination on notice
Confirmation that no tenancy is created
Obligations of the licensee
Governing law clause

Frequently Asked Questions

What is the difference between a licence to occupy and a tenancy agreement in Kenya?
A tenancy creates a property right — the tenant has exclusive possession and legal rights that are difficult for the landlord to remove without proper process. A licence is merely personal permission to use the property and does not create a tenancy. Licences are easier to revoke but courts will look at the substance of the arrangement, not just the label.
Can a licence to occupy be used for short-term property arrangements in Kenya?
Yes. A licence is suitable for short-term arrangements (e.g. a month-to-month arrangement with a caretaker, a family member staying at a property, or a short-term informal occupation). It is not suitable for long-term arrangements that in substance amount to a tenancy.
Is a licence to occupy enforceable in common law countries?
Yes. The licence/tenancy distinction is well-established in common law. The UK House of Lords decision in Street v Mountford [1985] established the principle that exclusive possession at a rent for a term creates a tenancy, regardless of what the document is called — Kenyan courts apply the same analysis.