Nairobi arbitration centre board takes oath of office

The Nairobi Centre for International Arbitration yesterday moved a step closer to being fully operational with inauguration of its board by the attorney general, boosting hopes for speedier resolution of commercial disputes among local and foreign investors.

The Arthur Igeria-chaired board was sworn into office by Attorney General Githu Muigai, paving the way for appointment of the tribunal’s secretariat.

Having a legally entrenched tribunal is seen as a key cog in making Nairobi an attractive destination for foreign investors, who shun the city for fear of slow judicial process.

“We want Nairobi to become a business hub and that can only be done if investors are assured that disputes that may arise in the course of their business will be resolved amicably and with speed,” said Mr Igeria (right).

Cities such as London and Kuala Lumpur, Malasyia, have a strong tradition of handling commercial disputes through arbitration, mediation and conciliation, which makes them attractive investment destinations.

Mr Igeria said that the Nairobi Tribunal would target quick and fair resolution of disputes.

Though Kenya’s legal system already recognises arbitration as a means of resolving disputes, there is still no permanent tribunal to hear cases and arbitration panels are appointed on a case-by-case basis.

The chairman noted that in the past, some investors have had to go abroad to seek arbitration services which turned out to be expensive for them.

Mr Igeria said that the centre has a lot of work at hand that it is supposed to undertake and called on Kenyans to support the initiative.

He noted that the centre would help to reduce backlog of cases at the courts and it was possible for it to transform Nairobi into an international financial and commercial capital.

The  centre which has representation from East Africa will also have other members from  AG‘s office, principal secretary in the department of justice, chief registrar  of the High Court, Law Society of Kenya, Kenya National Chamber of Commerce and Industry and Kenya Private Sector Alliance.

Members of the  centre are John Ohaga, Esther Opiyo, Jimmy Muyanja, Dr Emanuel Ugirashebuja, Peter Njuguna, Allen Gichuhi, Carol Kariuki and Collins Namachanja.

The centre is tasked with promoting and facilitating the conduct of international commercial arbitration and will administer domestic and international arbitration as well as alternative dispute resolution.

The team is expected to develop rules that will guide conciliation and mediation process as well as ensure that arbitration is reserved as the dispute resolution process of choice.

The centre will also provide advice and assistance for the enforcement and translation of arbitral awards as well as procedural and technical advice to disputants.

It also will work with other regional and international agencies to secure technical assistance in achieving its mandate.

The inaugurated board will now hire staff including its president, deputy president, and registrar to the arbitral court and 15 members who will act as judges.

International firms that open shop in Kenya often sign clauses that provide for resolution of disputes in London or Mauritius, which have well established arbitration mechanisms.

The arbitration unit is the product of a law that came into force in January and led to the establishment of a board in June.

Among the first duties of the directors is to appoint a registrar who will be secretary to the board in charge of running the centre.