Termination & Disputes

Settlement Agreement

A Settlement Agreement resolves a dispute between parties without going to court. Both parties agree to terms and release each other from further claims.

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What this document covers

Both parties' details
Background to the dispute
Settlement amount or agreed remedy
Full and final release of all claims
Confidentiality of the settlement terms
Non-disparagement clause
Governing law clause
Signatures of both parties

Frequently Asked Questions

Is a settlement agreement binding in Kenya?
Yes. A settlement agreement is a contract and is fully enforceable under the Law of Contract Act (Cap. 23). Once both parties sign, they are generally barred from bringing further claims on the same matter. Kenyan courts strongly encourage settlement and will enforce settlement agreements.
Does a settlement agreement need to be filed with a court in Kenya?
For disputes that are already in court, a settlement agreement can be filed as a consent order, which gives it the force of a court order. For pre-litigation settlements, filing is not required — the agreement itself is enforceable as a contract.
Can a settlement agreement include a confidentiality clause?
Yes. Confidentiality ('gagging') clauses are common in settlement agreements and are enforceable in Kenya and common law countries, provided they do not prevent a party from reporting criminal conduct to the authorities.