EDITORIAL: Expand cases mediation to attract more business

What you need to know:

Records show that a total of 243 cases worth Sh3.8 billion were settled under the programme in an average 66 days over the three months to January this year.
This is an impressive record which could lower the cost of doing business in Kenya and improve its profile as an investment destination.

A report showing that the Judiciary’s arbitration and mediation programme has reduced the time it takes to settle cases to about two months means a lot for business.

Records show that a total of 243 cases worth Sh3.8 billion were settled under the programme in an average 66 days over the three months to January this year.

This is an impressive record which could lower the cost of doing business in Kenya and improve its profile as an investment destination.

Lengthy and tortuous resolution of disputes has for many years blighted the country’s investment credentials because of the huge costs incurred whenever disagreements arise.

Conventional litigation has been frustrating because of delays amid a shortage of judicial officers and general delays in determination of cases compounded by a backlog.

Judiciary records show that cases dragged on for more than three years in court under the conventional settlement system.

This kind of delay has over the years proved too costly for businesses because of the high legal costs of retaining lawyers who charge fees based on, among other things, the number of appearances in court on behalf of their clients.

The shorter period of case settlement under the Judiciary’s Alternative Dispute Resolution plan is certainly a relief and efforts should be made to expand the scheme to all courts across the country.

The programme is currently being implemented in Mombasa, Uasin Gishu, Kisumu, Nakuru, Nyeri, Machakos, Garissa, Embu, Kakamega and Kisii.

The Judiciary should ride on the success of the pilot and hire more mediators to build on the tempo and maximise on the impact of the programme.

The race to attract investment is intense globally and Kenya must exploit every available opportunity to clear any stumbling blocks for investors, including expensive and windy litigation processes.

An efficient judicial system would no doubt win the confidence of investors and yield the much needed investment inflows for Kenya.

Capital is today very expensive and no investor would risk sinking money in an economy that lacks a functioning and efficient dispute settlement mechanism.