Unpaid invoices and outstanding debts can create serious financial difficulties for individuals, suppliers, contractors and businesses. When payment is delayed, it is important to act methodically rather than allowing frustration to determine the next step.
Kenyan law provides different avenues for pursuing legitimate debt claims, depending on the amount, the evidence and the nature of the dispute.
1. Organise your evidence
Before pursuing recovery, collect the documents that demonstrate the debt and the basis on which payment is due.
These may include:
- Signed agreements, quotations or purchase orders.
- Invoices and statements of account.
- Delivery notes or evidence that services were performed.
- Emails, messages and written acknowledgements of the outstanding amount.
- Records of part-payments and previous payment commitments.
The documents should be organised chronologically so that the transaction and payment history are clear.
2. Attempt a structured resolution
A written payment demand can set out the amount claimed, the basis of the debt, the relevant supporting documents and a reasonable deadline for payment.
Where appropriate, the parties may agree on a payment plan or negotiated settlement. Any settlement should be documented clearly.
3. Consider the appropriate legal process
Depending on the nature and value of the claim, a creditor may consider civil proceedings or another legally appropriate recovery mechanism.
The Small Claims Court in Kenya handles specified categories of civil claims, including certain claims arising from contracts for the sale and supply of goods or services. The court’s statutory monetary limit and other jurisdictional requirements must be checked before filing.
Not every debt automatically qualifies for the Small Claims Court. Disputed facts, the nature of the claim and other legal requirements may affect the appropriate forum.
4. Avoid unnecessary delay
Limitation periods may restrict how long a creditor has to commence proceedings. The applicable period depends on the type of claim and the relevant circumstances.
Take informed action
At Asembo and Company Advocates, we recognise that recovering money owed can be essential to business continuity and personal financial stability.
Contact the firm for guidance on debt recovery, contractual disputes and appropriate legal remedies.
