Payment & Finance

Retainer Agreement

A Retainer Agreement secures ongoing professional services for a fixed monthly fee. Guarantees availability and defines the scope of services included in the retainer.

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What this document covers

Professional and client details
Monthly retainer fee
Services included in the retainer
Hours or deliverables included per month
Rate for work beyond retainer scope
Rollover or forfeiture of unused hours
Notice period to end the retainer
Governing law clause

Frequently Asked Questions

What is a retainer agreement and how does it work?
A retainer agreement is a contract where a client pays a fixed monthly fee to secure a professional's ongoing availability and services. The fee may cover a set number of hours or deliverables per month. Work beyond the retainer scope is billed additionally at an agreed rate.
Is a retainer agreement enforceable in Kenya?
Yes, under the Law of Contract Act (Cap. 23). The retainer fee is consideration for the professional's availability and commitment not to take conflicting work. If the client stops paying, the professional can terminate and claim unpaid retainer fees.
What happens to unused retainer hours?
This depends on the agreement. Retainer hours can be: (a) use-it-or-lose-it each month, (b) rollover for a limited period, or (c) credited against future invoices. The agreement should specify clearly — courts will enforce whatever was agreed.