Legal Mechanisms On International Commercial Arbitration In Kenya: Challenges And Reforms

Arbitration law has been part of Kenya's statutory framework since the colonial times.More recently,the Constitution of Kenya promulgated in 2010 laid down a constitutional basis for the practice of arbitration in Kenya.Kenya has also ratified several international legal instruments promoting international commercial arbitration such as the New York Convention.Also Kenya has enacted several laws on international commercial law such as the Arbitration Act which is a replica of the UNCITRAL Model Law on International Commercial Arbitration as well as the Nairobi Centre for International Arbitration Act.In light of this,Kenya boasts itself of having a vibrant and progressive framework on international commercial arbitration.However,despite this,Kenya is not perceived as a preferred destination for international arbitration and parties tend to export the resolution of their commercial disputes to arbitration institutions outside the country to more attractive destinations such as Mauritius and Singapore.This study seeks to investigate the reasons why Kenya is unattractive as a seat for arbitration of international commercial disputes despite the developments in the legal and institutional framework.It will critically assess the weaknesses in the legal and institutional framework that makes Kenya not a preferred seat and prevent arbitration centres from attracting commercial disputes.The study also seeks to find out the reforms necessary for Kenya and learn from Singapore and Mauritius in a bid to make Kenya a regional arbitration hub in the continent.The study is divided into five chapters.Chapter One introduces the study.Chapter Two gives an overview of the legal framework and institutions established to promote and facilitate the determination of disputes through arbitration.Chapter Three discusses the weaknesses arising from the legal and institutional framework such as excessive court interference,inconsistencies in court decisions,inefficiencies by the courts,government interference in arbitration institutions as well as limited institutional capacity.Chapter Four discusses international arbitration in Singapore and Mauritius as well as lessons Kenya can learn from these two jurisdictions such as judicial support for arbitration and limited government intervention in arbitration institutions.Chapter Five concludes the study and recommends reforms in the Judiciary,legislative reforms as well as institutional reforms.