LEGITIMATE EXPECTATION & REASONABLE EXPECTATION

Reasonable expectation is the objectively justified belief in the likelihood of some future events generated by a legal right under a contract. In Mohan’s Oysterbay Drinks Limited v BAT (K) Limited Comm. Case No. 90 of 2014, the court held that the principle cannot be construed in the absence of a contractual relationship between parties

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PUBLIC BENEFIT ORGANIZATIONS

The legal regime for registration of public benefit organizations (previously referred to as non-governmental organizations) was governed by the Non-governmental Organizations Act,1990(the “NGO Act”. The President, on 14th May,2024, assented to the Public Benefit Organizations Act,2013 (the “PBO Act”) repealing the NGO Act. This article will focus on the salient differences between the two Acts,

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LOST PROFITS; A REMEDY FOR BREACH OF CONTRACT

SCENARIO; XYZ (the Supplier) entered signed an Agreement with ABC (the Customer) for the supply of certain goods. A reading of Clause 14.1 of the Agreement provides that “neither party shall be liable for any indirect losses of the other party”. The Supplier has failed to deliver the goods to the Customer and had refused

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UTILITY MODELS & PATENTS

Section 2 of the Industrial Property Act, Cap 509 of the Laws of Kenya (IPA) defines utility model to mean ‘any form, configuration or disposition of element of some appliance, utensil, tool, electrical and electronic circuitry, instrument, handicraft mechanism or other object or any part of the same allowing a better or different functioning, use,

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UNPACKING KENYA’S LEGAL & REGULATORY REGIME ON INCORPORATED TRUSTS

A trust is an equitable or beneficial right or title to property, held for one person (“Beneficiary”) by another person (“Trustee”), in whom resides the legal title or ownership, recognized and enforced by courts and bestowed upon him by another person (“Settlor”). The Kenya legal regime recognizes four types of trusts; family trusts, charitable trusts,

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WHY ARE HUMAN RESOURCE (HR) POLICIES & PROCEDURES IMPORTANT?

The management of human resource (HR) in a work place plays a key role in the success or failure of business. This therefore implies that there is need to have in place laws and regulations governing employer-employee relationships. Most HR professionals in Kenya are trained to have an understanding of these laws, regulations and a

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OPERATING A CASINO OR GAMING PREMISES IN KENYA

Casinos and games of chance are controlled by the Betting Control and Licensing Board (hereinafter referred to as “the Board”), which is established by the Betting, Lotteries and Gaming Act, Chapter 131 Laws of Kenya (hereinafter referred to as the “Act”). Executive Order No. 2 of 2023 issued on 2nd November, 2023 placed the Board

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ARTIFICIAL INTELLIGENCE (AI) AND THE EVOLUTION OF THE LEGAL PROFESSION

‘Artificial intelligence is not a narrative of humans versus machine. Rather, it is the problem versus human and machine.’ Technological advancements have led to improvements in efficiency in several spheres of daily life, ranging from virtual courts, to online businesses, online education, among others. Over the course of the previous 30 years, technology has altered

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ESTABLISHING A JOINT VENTURE

A Joint Venture is a commercial agreement between two or more parties with a view of sharing the rewards of the cooperation. Over the years. Joint Ventures have proven to be a popular way of mobilizing resources to carry out a particular project or business activity (ies). The resources can range from access to facilitate

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DEEMED INTEREST

The nature of some business transactions may in some cases require substantial monetary investment. Local financial institutions may not be willing to finance the business endeavor (s) and equally local business owners/entrepreneurs may shy away from local banks due to prevailing interest rates. This state of affairs creates an opportunity for foreign entities keen on

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EXPORT PROCESSING ZONES

The International Labour Organization (ILO) traces the earliest beginning of Export Processing Zones to 1229 when King Alfonso X of Spain granted commercial incentives to the City of Cadiz thereby establishing the Free Zone Consortium of Cadiz. The basic definition of an “Export Processing Zone” is a designated industrial or manufacturing area offering free trade

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POWER OF ATTORNEY – Options & Uses

A Power of Attorney is a document drawn for/by an individual (Donor/Principal) authorizing another individual (Attorney/Agent) to make decisions on their behalf and/or manage the Donor/Principal’s property, personal affairs or financial matters. There is no prescribed format for drafting a Power of Attorney, However, a Power of Attorney can be fine-tuned to fit the specific

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SALIENT FEATURES OF THE SOCIAL HEALTH INSURANCE ACT, 2023

On 19th October, 2023, the President appended his seal and signature to the Social Health Insurance Bill, 2023 and consequently overhauled the public health management structure that had been in existence in Kenya since 1998. The enactment of the Social Health Insurance Act, 2023 transferred all functions, funds, assets, property, powers, liabilities and duties of

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REGISTRATION AS A PAYMENT SERVICE PROVIDER (PSP) IN KENYA

The current digitized economy innovation has created a wide selection of mobile and online payment solutions and products. The Central Bank of Kenya on July 4, 2023 released thirty (30) names of Authorized Payment Service Providers (PSPs) operating in Kenya. The list included notable companies such as Safaricom PLC, Airtel Money Kenya Limited, Pesapal Limited

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TERMINATION ON GROUNDS OF POOR PERFORMANCE

It is common for an employer to expect certain standards of work performance at the workplace. The Employment Act, 2007 (the Act) allows for an employer who is concerned about the poor performance of an employee to terminate their employment contract. The following steps should be followed where poor performance is considered as grounds for

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RESTRAINT OF TRADE CLAUSES (Non-Solicitation & Non -Compete Clauses)

Various types of post-employment restraints and restrictions have been used in employment contracts and are sculpted to fit the specific needs of the employer. The drafting of these restraint and restriction phrases determines the extent and scope. Generally, restraint of trade clauses take two (2) facets; (i) A non-compete clause; in the context of drafting

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PLEA BARGAINING IN KENYA’S CRIMINAL JUSTICE SYSTEM

Plea bargaining occurs when an accused person reaches an agreement with the prosecution to forego his right to a full criminal trial by pleading guilty to an offence (s) in exchange for a concession by the prosecution. In Kenya, plea bargaining is anchored in Section 137A-O of the Criminal Procedure Code (CAP 75) and the

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SECTION 280 OF COMPANIES ACT, 2015 – Untying the Gordian Knot in Companies

Companies are facing “deadlocks” in terms of performing their day-to-day activities and meeting their various statutory obligations. The reasons behind these “deadlocks” may vary from the death of members, court cases, and in most cases the refusal, unwillingness, and sometimes inability of voting members of the company to attend general meetings and therefore making it

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TOWARDS PROTECTING YOUR TRADEMARK

A trademark is a legal recognition granted for the purposes of protecting brand names and logos of goods and services. There is no legal requirement for one to register a trademark. However, as a type of intellectual property, a trademark differentiates, maintains individuality, and protects goods and services from counterfeits. Section 6 (2) of the

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