International Creditor Guide to Kenya

Verifying the debtor

Kenyan companies are registered with the Business Registration Service, accessible through the eCitizen portal. An official search confirms the company's registered name, number, registered office and directors. Many recovery problems begin with invoices issued to a trading name or an affiliate rather than to the contracting company, so this check comes first.

How recovery proceeds

Recovery follows a familiar sequence: documentation review, a formal demand, negotiation and, where needed, proceedings. Most commercial claims are resolved before proceedings. Where litigation or arbitration is required, the matter is handled by a Kenyan advocate under a separate engagement.

Time limits

Section 4(1)(a) of the Limitation of Actions Act bars actions founded on contract after six years from the date the cause of action accrued. A signed written acknowledgment or a part payment restarts the period, under sections 23(3) and 24. International creditors holding older receivables should have them reviewed promptly.

Currency, funds and reporting

Claims are kept in their original currency. Recovered funds should be held separately from the recovery agent's own money and remitted with a statement showing the gross amount, approved deductions and the net sum paid. Insist on regular written reporting and on access to the underlying documents.

Choosing a local partner

When selecting a recovery partner in Kenya, look for:

• Clear written terms agreed before work starts.
• Segregation of client funds and transparent remittance statements.
• Online access to the claim timeline, documents and ledger.
• Legal steps taken by qualified advocates under their own engagement.
• Compliance with the Data Protection Act, 2019 in handling debtor information.

Frequently asked questions