A wet lease agreement is a contractual arrangement where an airline (lessor) provides an aircraft along with crew, maintenance, and insurance (ACMI) to another airline or operator (lessee). This type of leasing is common in Kenya’s aviation industry, allowing airlines to expand operations without the burden of purchasing new aircraft.
If you are looking for a lease agreement sample in Kenya, this guide provides a detailed wet lease agreement sample, key clauses, and legal considerations to help you draft a comprehensive contract.
Wet Lease Agreement Sample (Kenya)
WET LEASE AGREEMENT
This Agreement is made on March 5, 2025 between: 1. LESSOR: SkyWings Aviation Ltd, a legally registered airline under the laws of Kenya, with a principal office at Jomo Kenyatta International Airport, Nairobi, Kenya. 2. LESSEE: Safari Air Charter Ltd, a registered airline/charter operator, with a principal office at Wilson Airport, Nairobi, Kenya.
1. Definitions
1.1 “Aircraft” refers to Boeing 737-800, Registration Number: 5Y-SKY. 1.2 “Lease Term” means the duration of the agreement starting from March 10, 2025, to September 10, 2025. 1.3 “ACMI” covers Aircraft, Crew, Maintenance, and Insurance provided by the Lessor. 1.4 “Operating Costs” include fuel, airport fees, ground handling, and any operational expenses borne by the Lessee.
2. Lease Term & Renewal
2.1 The lease shall commence on March 10, 2025, and remain valid until September 10, 2025. 2.2 The agreement may be extended upon mutual consent of both parties with terms renegotiated accordingly.
3. Payment Terms
3.1 The Lessee shall pay the Lessor a rental fee of $3,500 per block hour or $250,000 fixed monthly fee, payable in USD.
3.2 Payment shall be made via bank transfer to the Lessor’s designated account on a monthly basis. 3.3 Late payments shall incur a penalty of 2% per day after the due date.
4. Responsibilities of the Lessor
4.1 The Lessor shall provide qualified flight crew, ensuring compliance with Kenya Civil Aviation Authority (KCAA) regulations. 4.2 The Lessor shall maintain the Aircraft in an airworthy condition. 4.3 The Lessor shall procure comprehensive insurance coverage for the Aircraft, covering hull, passengers, and third-party liabilities.
5. Responsibilities of the Lessee
5.1 The Lessee shall be responsible for:
Fuel procurement and airport charges.
Route permits and regulatory approvals.
Ensuring all operations comply with local and international aviation laws.
6. Termination Clause
6.1 Either party may terminate the agreement with 30 days’ notice under the following conditions::
Failure to meet payment obligations by the Lessee.
Regulatory non-compliance leading to suspension of operations.
Breach of contractual terms by either party.
7. Governing Law & Dispute Resolution
7.1 This Agreement shall be governed by the Laws of Kenya, specifically under the Kenya Civil Aviation Act. 7.2 Any disputes arising shall be resolved through arbitration in Nairobi, as per the Arbitration Act of Kenya.
8. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.
Key Considerations When Drafting a Wet Lease Agreement in Kenya
Regulatory Compliance: Ensure compliance with Kenya Civil Aviation Authority (KCAA) guidelines.
Financial Transparency: Clearly outline rental payments, penalties, and cost-sharing arrangements.
Operational Responsibilities: Define who covers fuel, airport fees, and permits.
Liability & Insurance: Clarify coverage for hull insurance, passenger liabilities, and third-party risks.
Dispute Resolution: Include a legally binding arbitration clause to resolve conflicts efficiently.
A wet lease agreement is a practical solution for airlines looking to expand their operations in Kenya without acquiring new aircraft. This sample lease agreement in Kenya outlines essential clauses to help ensure a legally sound and operationally efficient partnership.
If you are entering a wet lease contract, consult an aviation lawyer to tailor the agreement to your specific business needs.
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