Security Documents 101: What Your Bank Actually Requires

Bank-financed property and business transactions in Kenya typically involve a stack of security documents beyond the sale agreement itself — and each one deserves independent legal review, not just a signature.

The common documents

• Charge — the legal instrument securing the bank's interest in the property, registered against the title
• Deed of Indemnity — where a guarantor stands behind the borrower's obligations
• Letters of undertaking — commonly required from the seller's advocate confirming how sale proceeds will be applied to discharge existing charges
• Share transfer forms — where security is taken over company shares rather than, or alongside, real property

What to check before signing

Interest variation clauses, default and acceleration terms, cross-default provisions linking this facility to others you hold, and exactly what happens to the property if repayments lapse. Banks draft these documents to protect the bank — an independent advocate reviews them to protect you.

Where we come in

We review and negotiate security documentation, prepare charges and deeds of indemnity, and act for both borrowers and lenders in structuring bank-financed transactions.

This article is general information, not legal advice, and reflects the law as it currently stands. Rates, fees, and procedures are subject to change.