INTERNATIONAL ARBITRATION 1/3LY
KENYA
As a result, the independent and not-for-profit Nairobi Centre for International Arbitration (NCIA) was set up to promote and encourage international commercial arbitration. The Centre administers domestic and international arbitrations and provides assistance with the enforcement and translation of arbitral awards. Lawrence Ngugi, Acting Registrar of the NCIA has been involved with the Centre from its inception and has a long history in Kenya’s legal sphere. He explained: “The Centre is in the formative stage, so our focus has been on setting up a structure and rules which we expect will be operational by the end of June 2015. Commercial dispute resolution in the country has relied heavily on litigation. However the popularity of arbitration and other forms of dispute resolution has increased. The judiciary is involved in a project to introduce pre-action mediation as a pre-requisite to litigation. The Centre is part of this initiative working with the Mediation Accreditation Committee.” Steps are also being taken to limit the role of the local courts. Furthermore, just like many other jurisdictions, Kenya is exerting considerable effort on training in its legal profession: “We are also developing the capacity to conduct arbitration under our rules through training. We have strong links with CIArb and we are involved in the series of events which they are running in Nairobi covering arbitration practices. We are heavily involved in training and quality assurance, having recently put on a mediation course with the C E DR.” As such, Nairobi is slowly developing into an attractive and cost-effective dispute resolution venue.
LOCATED ON THE EQUATOR WITH THE INDIAN OCEAN TO THE SOUTH-EAST, KENYA IS THE FOUNDING MEMBER OF THE EAST AFRICAN COMMUNITY (EAC), AN ECONOMIC BLOC AND REGIONAL INTERGOVERNMENTAL ORGANISATION OF THE REPUBLICS OF BURUNDI, KENYA, RWANDA, THE UNITED REPUBLIC OF TANZANIA, AND THE REPUBLIC OF UGANDA, ESTABLISHED BY TREATY IN 1999. ACCORDING TO THE WORLD INVESTMENT REPORT 2014, KENYA RECEIVED USD 514 MILLION THROUGH FDI DURING 2013, WITH KEY INVESTMENTS IN THE INDUSTRIAL PRODUCTION, OIL AND GAS AND TRANSPORT SECTORS. Based on the 1985 UNCITRAL Model Law, the Kenyan Arbitration Act was adopted in 1995 and amended in 2009 to reflect the 2006 amendments to the UNCITRAL Model Law. Kenya signed the New York Convention in 1989 and has also ratified bilateral investment treaties with a number of western countries to provide for investor-state arbitration. Recent amendments to the Civil Procedure Act 2010 to enhance court appended mediation and assisted arbitration, further demonstrates the growth in acceptance of alternative dispute resolution. The Kenyan court experience is similar to that of other jurisdictions across Africa, characterised by prolonged and expensive procedures. Consequently, major international companies tend to opt for arbitration clauses providing for offshore settlement of disputes in foreign centres such as London and Paris. The passing of the Nairobi Centre for International Arbitration Act of 2013 sought to address this problem and establish Nairobi as a hub for international companies to settle disputes.
THE CENTRE IS IN THE FORMATIVE STAGE, SO OUR FOCUS HAS BEEN ON SETTING UP A STRUCTURE AND RULES WHICH WE EXPECT WILL BE OPERATIONAL BY THE END OF JUNE 2015.
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