Unpaid invoices erode working capital and, if left unaddressed, become time-barred. Kenyan law provides several recovery routes; the right choice depends on the size of the debt, the documentation and the debtor's status.
The pre-litigation demand
A formal demand letter from an advocate, citing the supply, the invoice numbers, the amount due and a deadline for payment, resolves a significant proportion of disputes without litigation. The demand also establishes a paper trail relied on at trial and starts the clock for statutory remedies.
Small Claims Court (up to KES 1,000,000)
The Small Claims Court Act, 2016 created a fast-track forum for liquidated monetary claims up to KES 1,000,000. Procedure is informal, hearings are typically within 60 days, and judgments are enforceable in the same way as Magistrates' Court judgments. Ideal for trade debts with clear documentation.
Summary judgment in the Magistrates' or High Court
Where the claim is on a liquidated demand supported by clear documentation and the debtor has no real defence, Order 36 of the Civil Procedure Rules allows summary judgment without a full trial — typically within four to six months of filing.
Statutory demand and winding-up petition
For corporate debtors owing KES 100,000 or more, a statutory demand under Section 384 of the Insolvency Act, 2015 followed by a winding-up petition is often decisive. The mere threat of winding-up frequently prompts payment from companies that have ignored ordinary demands.
Bankruptcy proceedings against individuals
For individual debtors owing KES 100,000 or more, the Insolvency Act offers a similar statutory demand route leading to bankruptcy. The reputational and financial consequences are severe, and most debtors settle once the demand issues.
Enforcement after judgment
Execution proceeds by warrant of attachment of movables, attachment of bank accounts, attachment of debts owed to the debtor (garnishee orders), charging orders against land or, where necessary, committal of an evasive judgment debtor under the Civil Procedure Act.
Limitation
The Limitation of Actions Act bars contract claims six years after the debt fell due. Acknowledgment of the debt in writing or part payment restarts time; both should be carefully documented in the credit control file.
Citations & further reading
Frequently asked questions
How long does debt recovery take in Kenya?
Small Claims Court judgments commonly issue within 60–120 days. Summary judgment in higher courts takes four to six months. Contested suits on disputed debts can take 12–24 months at first instance.
Can interest be claimed on overdue invoices?
Yes, where the contract provides for it. Courts also award court interest at the rate set under the Civil Procedure Act, currently 14% per annum from the date of filing.
Is it worth suing a debtor with no assets?
Often not. Pre-litigation asset checks — company searches, motor vehicle records and registered land — are routine before filing, and inform the commercial decision whether to proceed.
Related practice areas
This article is for general information only and does not constitute legal advice. Readers should obtain specific counsel on their particular matters.