The Rise of Alternative Dispute Resolution in Kenya

Commercial arbitration has become a preferred method for resolving business disputes in Kenya, offering a faster and more private alternative to traditional litigation. The legal framework for arbitration in Kenya is primarily governed by the Arbitration Act No. 4 of 1995 (as amended), which is modeled after the UNCITRAL Model Law.

The Role of the Nairobi Centre for International Arbitration (NCIA)

The establishment of the Nairobi Centre for International Arbitration (NCIA) under the Nairobi Centre for International Arbitration Act has positioned Kenya as a regional hub for dispute resolution. The NCIA provides an institutional framework for the conduct of arbitration and mediation, ensuring that disputes are handled by qualified professionals.

Why Choose Arbitration?

• Speed: Arbitration proceedings are generally faster than court cases, which can drag on for years due to case backlogs.
• Confidentiality: Unlike court proceedings which are public, arbitration is private, protecting sensitive commercial information.
• Expertise: Parties can select arbitrators with specific industry knowledge relevant to the dispute.
• Finality: Arbitral awards are generally final and binding, with limited grounds for appeal, providing certainty to the parties.

Enforcement of Awards

An arbitral award is recognized as binding and, upon application in writing to the High Court, can be enforced as a decree of the court. Kenya is also a signatory to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, meaning international awards can be enforced in Kenya and vice versa.

At Larpei & Company Advocates, we assist clients in drafting arbitration clauses, representing them in arbitral proceedings, and enforcing arbitral awards. Our team is well-versed in the procedural nuances of the Arbitration Act and the NCIA rules.