Probationary contracts are a common feature in employment relationships, especially during the initial phase of engagement. Probationary periods allow employers to assess a new employee’s suitability for a role. In Kenya, these contracts are governed by the Employment Act, 2007. Section 2 of the Employment Act (the Act) defines probationary [...]
Introduction In recent legal developments, the Court of Appeal in Nakuru, Kenya, in the case of BM Security Limited v Joseph Macharia and one other [2025] has clarified the boundaries of employer liability concerning the personal actions of employees. The judgment reinforces the principle that employers are not automatically liable [...]
INTRODUCTION Casual employment plays a crucial role in Kenya’s labour market, providing businesses with a flexible workforce while offering job opportunities to many workers. However, hiring casual workers comes with various risks and legal implications, particularly concerning tax compliance and labour rights, especially when engagements extend beyond the legally defined [...]
Imagine a local construction company is awarded a government contract for road construction. To execute the project, it forms a subsidiary company which handles procurement and subcontracting. Over time, the subsidiary accumulates substantial debts to suppliers and workers, then becomes insolvent. The affected parties seek compensation, but the subsidiary lacks [...]
Introduction Multinational corporations often grapple with the decision whether to establish branches or subsidiaries when expanding their businesses to foreign jurisdictions. This decision bears significant legal implications, particularly in how entities are taxed, their legal liabilities, and their operational freedoms. The Kenyan legal framework provides a distinctive treatment for branches [...]
It began with trust—a woman in Nairobi seeking medical help from a leading hospital. But instead of relief, she left with devastating injuries, stripped of her reproductive health and her dignity. Now, the High Court has ruled that Aga Khan Hospital must pay over Ksh.157 million in compensation after it [...]
The Digital Credit Providers (“DCP”) regulation, now referred to as Non-Deposit Taking Credit Businesses (“NDTB”) regulation following the Business Laws (Amendment) Act, 2024, has undergone significant evolution. This regulatory shift was driven by public outcry over unethical debt recovery methods, customer harassment, data breaches, and predatory lending practices. With the [...]
Non-compliance comes at a steep price. All non-deposit-taking credit providers are now required to obtain a license from the Central Bank of Kenya. Operating without this license not only puts a lender at risk of legal and financial penalties but also undermines their ability to register collateral or enforce pledged [...]
The FIDIC (Fédération Internationale Des Ingénieurs-Conseils) contracts are internationally recognized and offer standard forms for construction agreements that provide clear guidelines on the roles and responsibilities of the parties involved. These contracts are used globally and increasingly in Kenya for construction and infrastructure projects. This article explores the types of FIDIC contracts, [...]
Kenya’s credit landscape has seen a dramatic transformation over the last few years. With the rise of mobile phones and digital platforms, credit has become more accessible than ever before. Apps offering quick loans and peer-to-peer platforms have thrived. As from 2022 however, this landscape started changing. The Central Bank [...]