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Central Bank of Kenya Amendment Act 2026: Key Changes
The Central Bank of Kenya (Amendment) Act, 2026 introduces a dual-track mandate for financial stability and banking regulation, replaces the emergency lending facility with a structured Emergency Liquidity Assistance (ELA) framework, changes deputy governor appointments to require National Assembly approval, expands the Bank's precious metals powers, adds a capacity-building function, and renames the deposit insurer to Kenya Deposit Insurance Corporation. The amendments aim to strengthen prudential supervision and crisis management.
When Does the Review Board's Reading of a Tender Criterion Cross the Line from Interpretation into Unlawful Alteration?
The Court of Appeal in Okoth & Kiplagat Advocates v Public Procurement Administrative Review Board clarified the nature of procurement judicial review under section 175 of the Public Procurement and Asset Disposal Act, holding it is a sui generis constitutional review distinct from ordinary judicial review or merits appeals. The court ruled that legality review may require examining the substance of a decision, as long as the inquiry focuses on whether the decision-maker observed constitutional and statutory limits, not on whether the decision was correct. Regarding tender interpretation, the court found that an interpretation crosses into unlawful alteration only when it is so disconnected from the tender document's language, purpose, or structure that it effectively creates a new criterion. On the facts, the Review Board's treatment of individual advocate experience as firm experience was a permissible interpretation, not an alteration.
Mandatory Local Marine Cargo Insurance in Kenya Now Fully Enforced, Effective 1st July 2026
Kenya's mandatory local marine cargo insurance regime, introduced by Section 16A of the Marine Insurance Act via the Finance Act 2017, is now fully enforced as of 1 July 2026. The Kenya Revenue Authority and Insurance Regulatory Authority deployed a fully integrated digital platform linking importers, insurers, and customs, making local insurance certificates a precondition for customs clearance. The enforcement eliminates previous compliance workarounds and applies to all parties with insurable interest, including importers, consignees, and financiers. Stakeholders must restructure Incoterms, update trade finance conditions, and ensure digital certificates are obtained before clearance.
When Does a Capital Transaction Produce a Deductible Revenue Loss?
The Kenyan Court of Appeal held that a foreign exchange loss realized through debt-to-equity conversion is deductible under Section 4A of the Income Tax Act, rejecting the Commissioner's argument that the loss was capital in nature. The court found that the character of the loss depends on the underlying loan's use (here, working capital), not the settlement method. The decision confirms that realized forex losses from share issuance to settle foreign currency loans are revenue losses deductible in the year of conversion.
Fight, Flag, or Walk Away? What the Law Owes an Unsuccessful Tenderer.
The article outlines legal remedies available to unsuccessful tenderers in Kenya, rooted in Article 227 of the Constitution which mandates fairness, equity, transparency, competitiveness, and cost-effectiveness in public procurement. It discusses a tiered dispute resolution process under the PPADA 2015: internal review, the Public Procurement Administrative Review Board (PPARB), and constitutional petitions as a last resort. Remedies vary by timing: pre-award challenges can lead to re-evaluations or cancellation of awards, while post-award claims may only yield declaratory relief or damages, though damages are difficult to prove. The article emphasizes strict adherence to timelines and procedural rules, citing the Supreme Court's ruling in Kenya Railways Corporation v Okoiti.
Can a Foreign Embassy Be Sued in Kenya for Dismissing Its Own Staff?
The Supreme Court of Kenya will decide whether foreign embassies can claim diplomatic immunity in employment disputes involving locally hired staff, after the Court of Appeal ruled that such contracts are private law matters. The case, Embassy of Sweden v Kusewa & Mjomba, was certified as one of general public importance. Pending the Supreme Court's ruling, the Court of Appeal's 2020 judgment remains binding, meaning embassies cannot currently rely on immunity to dismiss ELRC proceedings. The decision will resolve conflicting appellate jurisprudence and clarify the legal obligations of foreign missions under Kenyan employment law.
Hands Off the Gavel! Why a done deal Court Auction Can Still Be Undone
The Court of Appeal in KUDHEIHA v Tea Hotels Limited held that a court-ordered auction of a property that was not the one authorized by the court is void, even if the property is registered in the buyers' names. The court emphasized that once property is attached by court order, it is in the custody of the law (pignus judiciale), and any private dealings without court approval are void. The decision listed multiple procedural failures in the execution process, including selling a different plot, missing notices, and lack of a proper decree. The court affirmed that buyers at court auctions must undertake due diligence beyond registration to ensure the sale was legally sound.
How an Incomplete Sale Agreement Can Ripen into Title by Adverse Possession
The Court of Appeal upheld that physical, long-term occupation under an incomplete sale agreement, where the purchaser was not at fault for non-completion, can constitute adverse possession. After twelve years, such occupation extinguishes the registered owner's title. The case involved a 1985 sale where the purchaser paid in full and occupied for over thirty years without formal transfer. The court emphasized that the purchaser's blamelessness and the owner's acquiescence were key factors. This decision has implications for property owners, administrators, and chargees.
Are the Over 40+ Clubs in Kenya under Threat due to Illegal Claims on their Land?
The Kiambu Club Limited v Kiambu County Government [2026] KEELC 2283 (KLR) judgment affirms that lease renewals for golf clubs must follow statutory procedures under the Land Act, 2012, and cannot be conditioned on surrendering land arbitrarily. The court held that public interest does not give counties unchecked power to reclaim leased land without proper notice, and that continued occupation with rate payments creates a periodic tenancy. The decision reinforces the National Land Commission's sole authority over renewals and emphasizes that clubs' documented community and environmental contributions strengthen their legal position. The ruling provides procedural clarity for over 40 Kenyan golf clubs facing land tenure challenges.
Court of Appeal reaffirms devolved access to justice allowing magistrates to hear land and employment cases
The Court of Appeal has overturned a High Court decision that restricted magistrates from hearing land and employment matters, reaffirming the devolved access to justice. The ruling found that the earlier decision was illogical and contrary to the Constitution, as it limited access to justice and increased backlog. The Court held that magistrates have jurisdiction over these matters, which will expedite resolution of disputes and reduce case backlog.
Deeds of indemnity - reconstruction of records
This article discusses the requirement for registered landowners to issue deeds of indemnity when reconstructing lost or destroyed land records. Under Section 33 of the Land Registration Act, the Registrar may reconstruct registers after inquiries and 60 days' notice, but the owner must provide a deed indemnifying the government against potential claims. The government is statutorily obliged to indemnify persons damaged by rectification or errors, making reciprocal indemnity from owners fair when relying on owner-provided records. The deed ensures the government and Lands Registry are protected from actions arising from the reconstruction process.
On Demand Guarantees
This article explains on-demand guarantees, defining a contract of guarantee and its essential elements, including the roles of the surety, principal debtor, and creditor. It discusses the secondary and accessory nature of a guarantor's liability, the co-extensive liability with the principal debtor, and the importance of guarantees in banking and finance. The article also outlines the requirements for a valid contract of guarantee, such as consideration and capacity.
Digitization of the Lands and Companies Registries in Kenya
LAND REGISTRATION REGIMES IN KENYA During the pre-colonization period in Kenya, land was communally owned and every community had its own practice on how to deal with it. Land was not a merely of production, it was beyond the physical aspect, it was almost spiritual; it defined and bound together social, spiritual relations and within […]