SPECIAL USE LICENCE

KENYA FOREST SERVICE

TO

GIKUYU AND MUMBI CULTURAL MUSEUM

ON PORTION OF

KABARU FOREST

SPECIAL-USE LICENCE

This licence Agreement is made this………………………day of …………………………2012.

  1. PARTIES

This Licence is generated by the KENYA FOREST SERVICE (hereinafter referred to as’ the service’’) of p.o Box 7445-00100 Nairobi to GIKUYU AND MUMBI CULTURAL MUSEUM of P. o. Box 7445-00100, Nairobi (hereinafter referred to as ``the Licensee’’). The service and the Licensee are jointly referred to as ``the parties’’.

  1. OBJECTIVES AND PURPOSE
    1. This licensee for the purposes of permitting the licensee to undertake the activities listed in the first schedule hereto in Kabaru forest station in Nyeri zone (``the Forest Area’’)  
    2. This special-use licence is issued pursuant to the determination by the service that the primary purposes of those activities listed in the first schedule to this licence are in the public interest.
    3. The Forest Area in which the activity will be carried out shall comprise of seven decimal five (7.5) hectares and its boundaries are better described in the second scheduled to this licence.
    4. The first schedule, second schedule and Third schedule form an integral part of this licence.
    5. TRANSFERABILITY
      1. This licence shall not be transferable.
      2. This licence may be assigned only with the written approval of the service.
      3. The service shall not approve an assignment of this licence which would depart from the main objectives and purpose set out in this licence.
      4. The licensee is liable for all the activities, acts and omissions of the assignees of its rights under this licence.
      5. This does not give the Licensee exclusive possession of the Forest Area or any part thereof and does not create a lease or tenancy in any way whatsoever.
      6. DURATION

This licence shall be for a term of twenty five (25) years from the date of issue.

  1. FEES AND OTHER CHARGESForest Land Rent for the first year shall be paid immediately prior to the issue of this licence.
    1. The Licensee shall make payment as follows:
      1. Licence fee of Kshs 1,200,000per year with a 5% annual increment payable annually in advance, due three (3) years from the date this Licence Agreement is made and on the same date every year as shown in the Third schedule.
      2. Forest Land Rent at the prevailing rate of Kshs 10,000 per acre per year for 7.5 hectares (18.5325 acres) totaling to Kshs 185,325 per year.
      3. Any other fees as determined by the service.
  2. Licence fee, Forest land Rent and all other fees shall be paid within thirty (30) days of being due and failure to pay such fees shall render this licence void.
  3. The service shall review the Forest Land Rent payable by the Licensee and where this occurs the Licensee shall be informed in writing.
  4.    BASIC WARRANTIES OF THE SERVICE
    1. The forest Area is a state forest.
  5. At the time making this licence, the property rights attached to the Forest Area consist of the easements, rights of way, servitudes, mineral rights, any customary rights established under section 22 of the Forests Act, 2005 or other claims of record and Governments own right of ownership, Particular in relation to illegal harvesting of forest produce and hunting of game.
    1. Inform the service if the Licensee becomes aware of any developments, changes and occurrences within the forest which are critical for the conservation of biodiversity.
    2. Take precautions against fire, and where it occurs take all necessary measures to put out the fire.
    3. Take precautions against destruction of trees and other forest resources and produce where it occurs report to the service.
    4. Do any other act that is necessary for the efficient conservation and management of the forest.
    5. Use the forest Area in a manner consistent with the approved management plan.
    6. keep written records of all activities conducted in the Forest Area and preserve such records for at least six years from when first written or for duration of this licence, whichever is longer
    7. Obtain and maintain at its own cost all other necessary consents, licenses and approvals from the relevant authorities for its permitted use.
    8. Pay to the service all fees and levies when due for the duration of the licence.
    9. Not do or permit any act that would interfere with the work of the service.
    10. Not pollute, damage, or disturb land or water, except with permission of the service or other appropriate agency of the Government of Kenya.
    11. Not cause or permit a nuisance or trespass, whether on lands of the service or lands owned or occupied by others.
    12. Not interfere with the use of the land by the service or any other person authorized by the service.
    13. Remove all equipment from the site and the land within thirty days of termination of this licence.
    14. Observe all the services security, access and other rules, regulations, procedures and reasonable instructions that may from time by the service.
    15. Maintain public liability or other third party liability insurance in respect of any injury loss or damage to any persons or property arising out of the exercise of the Licensees rights and upon written request provides proof of such insurance to the service.
    16. Pay all charges and keep the service indemnified in respect of the electricity, water and other utilities consumed by the Licensee.
      1. This license does not give the Licensee the right to mining, quarrying, logging, timber extraction or other activities.
      2. Nothing under this licence exempts the licensee from paying such taxes, fees and levies as it may be required under the laws of Kenya.

12. DISPUTE RESOLUTION

  1. In the event of a dispute concerning this licence or its implementation the parties may submit the dispute for arbitration, to be resolved in accordance with the Arbitration Act (Act No. 4 of 1995) Laws of Kenya.
  2. The cost of arbitration shall be borne equally by both parties.
  3. The arbitration shall take place in Nairobi.

13. VARIATION

     The service may vary, suspend or cancel the licence:-

  1. On the request of the Licensee upon completion of the activity, or for any other cause; or
  2. On its own after giving fourteen days notice to the holder with reasons for such variation, suspension or cancellation;

     Provided that the service may cancel the licence with immediate effect where the Licensee breaches the basic warranties of the Licensee or the rights of the service as specified in this licence.

FIRST SCHEDULE

                                               PERMITTED ACTIVITIES

The Licensee is permitted to develop and operate a cultural museum with the following facilities all within the licensed area (the Forest Area):

  1. One (1) main museum building
  2. One (1) esoteric centre building(a modernized traditional homestead)
  3. One (1) students centre building (for lectures on conservation)
  4. One (1)office block
  5. One (1) staff quarter block
  6. Associated facilities energy and water supply and management; waste management; communication; fire control; safety and security; and any other facility that may be approved by the service.

SECOND SCHEDULE

                               DESCRIPTION OF THE LICENCED AREA (THE

FOREST AREA)

THIRD SCHEDULE             

                                                                                                 LICENCE FEES

  1. Forest Land Rent at the prevailing rate of Kshs 10,000 per acre year for 7.5 hectares (18.5325 acres) totaling to Kshs 185,325 per year payable immediately prior to issue of this licence and on the same date every year.
  2. The licensee shall pay the service a licence fee of Kshs 1,200,000 per year with a 5% annual increment payable annually in advance, due three (3) years from the date this licence agreement is made and on the same date every year as shown in the table below.

ITEM

YEAR

5% ANNUAL INCREMENT (KSH)

TOTAL YEARLY PAYMENT (KSH)

1

2012

NIL

NIL

2

2013

NIL

NIL

 

3

2014

NIL

1,200,000

 

4

2015

60,000

1,260,000

 

5

2016

63,000

1,323,000

 

6

2017

66,150

1,389,150

 

7

2018

69,458

1,458,608

 

8

2019

72,930

1,531,538

 

9

2020

76,577

1,608,115

 

10

2021

        80,406

1,688,521

 

11

2022

84,426

1,772,947

 

12

2023

88,647

1,861,594

 

13

2024

93,080

1,954,674

 

14

2025

97,734

2,052,408

 

15

2026

102,620

2,155,028

 
  1.        16

2027

107,751

2,262,779

 

17

2028

113,139

2,375,918

 

18

2029

118,796

2,494,714

 

19

2030

124,736

2,619,450

 

20

2031

130,973

2,750,423

 

21

2032

137,521

2,887,944

 

22

2033

144,397

3,032,341

 

23

2034

151,617

3,183,958

 

24

2035

159,197

3,343,155

 

25

2036

167,158

3,510,313