analyse the extent of arbitrability in Kenya.
Question
analyse the extent of arbitrability in Kenya.
Solution
Arbitrability in Kenya is governed by the Arbitration Act of 1995. This Act is based on the UNCITRAL Model Law on International Commercial Arbitration.
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Scope of Arbitrability: In Kenya, any dispute that the parties have agreed to submit to arbitration under an agreement may be determined by arbitration unless it is contrary to public policy or is not capable of determination by arbitration under the laws of Kenya. This means that a wide range of commercial disputes can be arbitrated.
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Limitations to Arbitrability: However, there are certain matters that are not arbitrable in Kenya. These include criminal matters, matrimonial disputes, matters relating to insolvency and winding up of companies, and disputes relating to immovable property.
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International and Domestic Arbitration: The Arbitration Act applies to both domestic and international arbitration. However, in the case of international arbitration, the Act provides that unless otherwise agreed by the parties, the arbitral proceedings shall be held in Kenya, and the arbitral award shall be deemed to have been made in Kenya.
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Enforcement of Arbitral Awards: The Act also provides for the enforcement of arbitral awards. An arbitral award, irrespective of the country in which it was made, shall be recognized as binding and, upon application in writing to the court, shall be enforced by the court.
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Institutional Support: The Nairobi Centre for International Arbitration (NCIA) was established by the government to promote and facilitate the conduct of international commercial arbitration in Kenya. The NCIA provides institutional support for arbitration and other alternative dispute resolution mechanisms.
In conclusion, Kenya has a robust legal framework for arbitration, which is largely in line with international standards. However, there are certain limitations to arbitrability, particularly in relation to matters that are considered to be of public interest.
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