In lending, paper is not protection—structure is. At Mwendwa Chuma and Associates, we deliver legally sound, strategically drafted loan agreements tailored to Kenyan law and enforceable in Nairobi’s courts.
If you’re issuing a personal loan, funding a startup, or protecting a KES 100M credit facility, our role is to eliminate ambiguity, mitigate risk, and anchor repayment through enforceable terms and security instruments.
Loan Agreement Legal Solutions
We advise lenders, borrowers, private investors, SMEs, and institutions in Nairobi on transactions that require technical precision and outcome-driven legal support.
Our team drafts and structures Loan Agreements across personal, commercial, and intercompany lending—including KES- and USD-denominated loans, convertible debt instruments, and investor note facilities—anchored in compliance with the Law of Contract Act, Interest Rate Regulations, and CBK Prudential Guidelines.
We conduct detailed contract reviews, flagging enforcement risks, tax traps, and faulty clauses before execution.
To reinforce lending positions, we prepare and register Land Charges, Company Debentures, Personal Guarantees, and Chattel Mortgages, as per procedural integrity under Kenya’s property and securities law.
Where performance fails, we act decisively through demand notices, asset recovery, court-driven enforcement, and insolvency mechanisms tailored to borrower profiles. For institutional or cross-border lending, we issue enforceability Legal Opinions aligned with Kenyan law and investor expectations.
Why Clients Engage Us
Our strength lies in deep jurisdictional competence—a practical understanding of how loan agreements operate within the judicial temperament and regulatory enforcement mechanisms of Kenya.
We focus every clause on legal outcomes, making sure each instrument is structured with enforcement-oriented precision and that security is built to withstand commercial and legal pressure.
Our lawyers are embedded in the dynamics of Nairobi’s transactional environment, where timing, documentation, and enforceability can determine the viability of a deal.
If we are advising on the first term sheet or managing the final recovery process, our work covers the full lifecycle of a Loan Agreement—including structuring, negotiation, registration, compliance, and enforcement—designed to align legal execution with business objectives.
Results We Deliver
- Structured and registered a KES 75M secured facility for a Nairobi-based trade financier, complete with land charge, debenture, and personal guarantee.- Advised on a convertible loan note for a tech startup backed by international angel investors—registered securities and issued local law opinion.
- Acted for an SME lender to recover KES 12M through secured asset enforcement under a chattel mortgage and debenture.
Don’t Lend or Borrow on Assumptions. Secure It Legally.
Let our team structure your transaction, protect your capital, and position you for full enforcement if needed.
Every unclear clause, missing signature, or unregistered security can cost millions—or collapse a deal entirely.
This is your opportunity to lead with legal certainty, not legal regret. Let’s make your loan agreement bankable, enforceable, and built to hold up in court.
Frequently Asked Questions
Do loan agreements in Kenya need to be registered?
Only if secured. The underlying agreement doesn’t require registration, but any associated charge, debenture, or security instrument does—and attracts stamp duty.
What makes a loan agreement unenforceable in court?
Typical red flags include lack of consideration, unsigned documents, non-compliance with the Law of Contract Act, or vague repayment terms. Unregistered security can also void enforcement rights.
Can I enforce a loan agreement if the borrower defaults?
Yes—if the agreement is properly drafted and the security documented and registered. Our firm will issue demand, commence proceedings, or appoint a receiver as appropriate.
Do I need a legal opinion to lend to a Kenyan company?
Foreign lenders, DFIs, or investors often require a legal opinion to confirm enforceability under Kenyan law. We issue these routinely, including for convertible instruments.
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