Court verdict signals realignment for foreign firms in search of justice

Foreign companies and lenders entering the Kenyan market should remain vigilant ensuring contracts are enforceable, assessing potential procedural risks, and consider the merits of local registration.

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For years, foreign companies trying to enforce contracts in Kenya have relied on a well-established understanding that local registration, under the Companies Act, was not required to pursue a legal claim.

Then, one year ago, this understanding was shaken when a High Court suggested that non-registered companies could be barred from suing, creating uncertainty for international businesses operating in Kenya. But thanks to an even more recent case, the High Court has reaffirmed the established rule, essentially giving unregistered foreign businesses access to Kenyan courts.

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