Introduction

Increased activity in infrastructure projects, mainly implemented under public-private partnership (PPP) arrangements, as well as the mining, oil and gas, and renewable energy sectors, have increased the prevalence of international arbitration as a mode of resolving disputes in Kenya. This is mainly because the legislation, bilateral agreements or contracts governing projects in these sectors provide for arbitration as a dispute resolution mechanism. There has also been a considerable increase in international arbitration activity, arising from the construction industry and technology and finance, owing to increased foreign and bilateral investment. 

Most of the contracts in respect of the aforesaid sectors and projects have foreign counterparties who prefer to have disputes resolved by international arbitration for various reasons, including the perception that international arbitral tribunals are likely to be neutral and impartial, the final nature of arbitral awards, international arbitration’s appreciation and accommodation of diverse legal cultures, the willingness of courts in Kenya to enforce foreign awards, and the perceived backlog of cases in Kenyan courts.

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