Termination & Disputes

Dispute Resolution Agreement

A Dispute Resolution Agreement sets out how disputes will be handled — mediation, arbitration, or litigation. Agreed upfront to avoid costly and lengthy court proceedings.

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What this document covers

Both parties' details
Disputes covered by the agreement
Negotiation period before escalation
Mediation process and mediator appointment
Arbitration clause (if escalation beyond mediation required)
Seat and language of arbitration
Governing law clause

Frequently Asked Questions

What dispute resolution options are available in Kenya?
Kenyan law recognises negotiation, mediation, arbitration, and litigation. The Arbitration Act 1995 governs arbitration, and the Mediation (Pilot Project) Rules 2015 govern court-annexed mediation. Most commercial contracts specify arbitration or mediation before litigation to save time and cost.
Is an arbitration clause in a contract enforceable in Kenya?
Yes. Kenya is a signatory to the New York Convention, which requires courts to refer parties to arbitration when a valid arbitration agreement exists. The Arbitration Act 1995 gives Kenyan arbitration proceedings statutory backing and makes awards enforceable.
Is an arbitration clause enforceable internationally?
Yes. Over 170 countries are signatories to the New York Convention, which makes arbitration awards from recognised seats (including Nairobi) enforceable internationally. This is a major advantage of arbitration over litigation for cross-border contracts.