Payment & Finance

Revenue Sharing Agreement

A Revenue Sharing Agreement splits income from a project or business between parties according to agreed percentages. Ideal for partnerships, referral arrangements, and joint ventures.

Generate this document

Legally sound

Drafted to comply with Kenyan law and international common law standards.

Ready in seconds

Fill in your details and get a complete, professional document instantly.

Fully customisable

Every clause is tailored to your specific situation and requirements.

What this document covers

Parties' details
Revenue streams being shared
Each party's percentage share
Definition of "revenue" (gross or net, inclusions/exclusions)
Payment frequency and reconciliation
Audit rights
Statement that the arrangement is not a partnership
Termination provisions
Governing law clause

Frequently Asked Questions

Is a revenue sharing agreement legally binding in Kenya?
Yes, under the Law of Contract Act (Cap. 23). The agreement must clearly specify: which revenues are shared, the percentage each party receives, how revenues are calculated and verified, when payments are made, and what records each party must keep. Vague revenue sharing arrangements are a major source of business disputes.
Does a revenue sharing agreement create a partnership in Kenya?
Not automatically, but it can. Under the Partnership Act (Cap. 29), sharing profits is one indicator of a partnership, which carries joint and several liability. To avoid unintended partnership status, the agreement should explicitly state that the arrangement is not a partnership.
Is a revenue sharing agreement enforceable internationally?
Yes, in common law countries. Specify the governing law, how revenues are audited, and the dispute resolution mechanism. Cross-border revenue sharing arrangements should also consider tax implications in each jurisdiction.