Kenya's Arbitration (amendment) Bill 2025, What Businesses and Contract Drafters Need to Know in 2026

Last reviewed: 4 May 2026

The Kenya Arbitration (Amendment) Bill 2025 explained in practical terms represents the most consequential overhaul of the country’s arbitration framework since the original Arbitration Act of 1995. The Bill introduces an entirely new Arbitral Court and Registrar, formalises emergency arbitration, regulates third-party funding for the first time, and recalibrates how Kenyan courts interact with arbitral proceedings, from stays of litigation through to award enforcement. For general counsel, contract managers and construction project teams doing business in or with Kenyan counterparties, the 2026 landscape demands immediate attention: arbitration clauses drafted before these amendments risk being under-specified, and dispute-escalation mechanisms in construction contracts may need wholesale revision.

This guide translates each amendment into concrete drafting actions, sample clauses and a compliance checklist that business teams can use today.

What Changes Does the Arbitration Amendment Bill 2025 Introduce?, A Quick Legislative Summary

The Arbitration (Amendment) Bill 2025 proposes targeted amendments across multiple parts of Kenya’s Arbitration Act. Taken together, the changes signal a deliberate effort to reposition Nairobi as an arbitration-friendly seat that can compete with Kigali, Lagos and Mauritius for cross-border dispute work. Below is a structured summary of the principal amendments, grouped by theme.

New Institutional Features, The Arbitral Court and Registrar

The centrepiece of the Bill is the establishment of a dedicated Arbitral Court, supported by a Registrar with defined administrative and supervisory powers. The Arbitral Court is intended to serve as the primary judicial body handling applications related to arbitration, including challenges to arbitrator appointments, requests for interim relief and applications related to the recognition and enforcement of arbitral awards. The creation of a specialist court addresses a long-standing complaint among practitioners that arbitration-related applications in the High Court were subject to general-list delays and inconsistent judicial approaches.

The Registrar’s role is equally significant. Industry observers expect the Registrar to function as a procedural gatekeeper, managing filings, coordinating timelines and ensuring that applications are directed to the correct division. For businesses, the practical effect is that pre-arbitration and post-award court processes should become faster and more predictable, provided the Arbitral Court is adequately resourced upon operationalisation.

Expanded Definitions, Award, Emergency Arbitration and Third-Party Funding

The Bill broadens the statutory definition of “award” to encompass decisions rendered by emergency arbitrators. This is a material change under Kenya arbitration law 2026 because it brings emergency arbitrator orders within the enforcement framework of the Act, closing a gap that previously left parties uncertain about whether emergency relief could be recognised by Kenyan courts.

Equally notable is the introduction of a definition and regulatory framework for third-party funding in arbitration. The Bill establishes disclosure obligations, requiring funded parties to notify the tribunal and opposing parties of the existence and identity of any third-party funder. This addresses potential conflicts of interest and aligns Kenyan practice with international standards emerging in jurisdictions such as Singapore and Hong Kong.

Procedural Changes, Appeals, Fast-Track Procedures and Summary Dismissal

The Bill introduces provisions for fast-track arbitration procedures, designed for lower-value or less complex disputes. It also codifies a summary dismissal mechanism, empowering tribunals to dispose of claims or defences that are manifestly without merit at an early stage, saving time and costs for both parties.

On appeals, the Bill recalibrates the grounds and process for challenging arbitral awards, with the likely practical effect being a narrower window for court interference while maintaining essential safeguards against procedural irregularity and public-policy violations.

How Will the Bill Affect Enforceability of Arbitration Agreements and Court Stays?

The amendments directly address two of the most litigated areas in Kenyan arbitration practice: the enforceability of arbitration agreements and the stay of proceedings arbitration Kenya courts have historically grappled with. The Bill strengthens both pillars, but with nuances that contract drafters must understand.

Stay of Court Proceedings, The New Test and Process

Under the existing Arbitration Act, a party seeking to enforce an arbitration agreement against a counterparty who has commenced court proceedings must apply for a stay. The Bill tightens this process by clarifying the threshold a court must apply: where a valid arbitration agreement exists and covers the subject matter of the dispute, the stay should ordinarily be granted unless the agreement is null, void or incapable of being performed.

Early indications suggest that the Arbitral Court, rather than the general divisions of the High Court, will be the forum for stay applications. This matters enormously in practice. Dedicated arbitration judges are expected to apply the pro-arbitration standard more consistently than generalist judges who may be less familiar with the policy imperative of upholding party autonomy.

For in-house counsel, the takeaway is clear: where your contract contains an arbitration clause and a counterparty files suit in the ordinary courts, the path to enforcing that clause should be faster and more certain. However, the clause itself must be unambiguous. Poorly drafted or pathological arbitration clauses, those containing internal contradictions, unclear seat designations or references to non-existent arbitral institutions, remain vulnerable to challenge.

The Arbitral Court’s Role in Pre-Arbitration Challenges

The Arbitral Court is positioned to hear challenges to arbitrator appointments, applications for consolidation of proceedings, and jurisdictional objections that arise before the tribunal is fully constituted. By centralising these functions, the Bill reduces the risk of parallel court proceedings that can delay the commencement of arbitration by months.

For contract managers negotiating new agreements, this means that seat-of-arbitration clauses designating Nairobi now carry enhanced procedural infrastructure. Parties selecting Nairobi as their seat can point to a specialist court that handles pre-arbitration disputes, a feature that strengthens the attractiveness of Kenya as a seat for international arbitration.

Third-Party Funding and Its Disclosure Impact

The third-party funding provisions introduce mandatory disclosure requirements. A funded party must disclose the existence and identity of its funder promptly after the funding arrangement is concluded. The tribunal has the power to order further disclosure where conflicts of interest may arise, for example, where the funder has a relationship with one of the arbitrators.

The likely practical effect for businesses is twofold. First, parties considering third-party funding for Kenyan arbitrations must factor in the disclosure obligation when structuring funding arrangements. Second, opposing parties gain a new tool for investigating potential arbitrator conflicts and challenging appointments where undisclosed funding creates an appearance of bias. Arbitration clause drafting Kenya practitioners undertake should now include a funding-disclosure mechanism clause to pre-empt disputes during the proceedings.

How Do the Amendments Change Interim Relief and Court Involvement in Arbitration?

Interim measures arbitration Kenya courts can grant have long been a source of uncertainty. The Bill addresses this by codifying the powers of both the tribunal and the Arbitral Court to grant interim relief, and by formalising emergency arbitration as a recognised mechanism.

Who to Apply to, Arbitral Court vs Ordinary Courts

The Bill creates a dual-track system. Before the tribunal is constituted, a party may apply to the Arbitral Court, or, where the Bill permits, to an emergency arbitrator appointed under the rules of the relevant arbitral institution, for urgent interim measures. These may include orders preserving assets, maintaining the status quo, or compelling the production of evidence from third parties.

Once the tribunal is constituted, the tribunal itself becomes the primary forum for interim relief applications. The ordinary High Court retains residual jurisdiction to grant interim measures, but the Bill’s framework channels most applications to the specialist Arbitral Court, reducing the risk of conflicting orders from different judicial bodies.

For construction projects and high-value commercial disputes, the ability to obtain emergency interim relief before the tribunal is constituted fills a critical timing gap. Previously, parties had to apply to the High Court for conservatory orders, a process that could take weeks in congested registries.

Drafting Clauses for Interim Relief

To take full advantage of the new interim-relief framework, arbitration clauses should expressly reference emergency arbitration and confirm the parties’ consent to the Arbitral Court’s interim-relief jurisdiction. A model clause is provided in the sample clause bank below. Omitting such language does not necessarily preclude interim relief, but including it removes doubt and accelerates the application process.

Dispute Adjudication Boards and Construction Disputes, Can Parties Go Straight to Arbitration?

The dispute adjudication board Kenya construction sector relies upon, particularly in FIDIC-based contracts, is directly affected by the Bill’s provisions. The amendments address the interface between DAB decisions and arbitration, clarifying the binding nature of DAB decisions and the circumstances under which parties can escalate to arbitration.

Under the proposed framework, a DAB decision is binding on the parties from the moment it is issued. A party dissatisfied with the decision must issue a notice of dissatisfaction within the contractually prescribed period, failing which the DAB decision becomes final and enforceable as an arbitral award. Where a notice of dissatisfaction is issued, either party may then refer the dispute to arbitration.

The critical question, can parties go straight to arbitration if a DAB was not appointed?, is addressed by the Bill’s interaction with standard-form construction contracts. Where the contract provides for a DAB and one has not been constituted (whether by default of the appointing party or mutual failure), industry observers expect that a party would be entitled to proceed directly to arbitration, treating the DAB tier as having been waived or frustrated. However, this interpretation will depend on the specific contractual wording, and drafters should include express fallback language.

Recommended DAB-to-Arbitration Escalation Language

Construction contract drafters should include a clause specifying that where a DAB has not been constituted within a defined period (typically 28 days of a party’s request), the dispute may be referred directly to arbitration without the DAB step. This avoids the deadlock that arises where one party refuses to cooperate in constituting the DAB as a tactical delay mechanism. A sample escalation clause is included in the clause bank below.

Arbitration Clause Drafting Kenya, What to Change in Your Contracts

This is the most immediately actionable section for contract drafters and general counsel. The Arbitration Amendment Bill 2025 creates both opportunities and obligations that should be reflected in every new arbitration clause, and reviewed in existing agreements where renegotiation is commercially feasible.

Must-Have Clause Elements After the 2025 Amendments

• Clear seat designation. Specify Nairobi (or another Kenyan city) as the seat of arbitration to anchor the proceedings in the new Arbitral Court framework.
• Institutional rules reference. Identify the applicable arbitral institution (e.g., NCIA, ICC, LCIA) and the version of rules that will apply. This determines whether emergency arbitration provisions are automatically available.
• Arbitral Court interaction clause. Confirm that the parties consent to the jurisdiction of the Arbitral Court for pre-arbitration applications, interim relief and enforcement matters.
• Emergency arbitration opt-in. Expressly confirm the parties’ consent to emergency arbitration procedures under the chosen institutional rules, and state that emergency arbitrator orders shall be treated as enforceable awards under the Act.
• Interim measures clause. State that either party may apply to the Arbitral Court, emergency arbitrator, or tribunal (as applicable) for interim measures, without such application constituting a waiver of the arbitration agreement.
• Third-party funding disclosure. Require each party to disclose the existence, identity and nature of any third-party funding arrangement within a defined period of concluding such arrangement.
• DAB fallback language (construction contracts). Specify the timeline for DAB constitution and provide an express escalation to arbitration if the DAB is not constituted within the prescribed period.
• Confidentiality clause. Address the scope of confidentiality obligations, as the Bill may introduce default confidentiality provisions that parties may wish to expand or narrow.
• Costs and arbitrator disclosure requirements. Include provisions on cost allocation and require arbitrators to make ongoing disclosure of circumstances that may give rise to justifiable doubts about their impartiality.

Sample Clause Bank, Ready-to-Adapt Arbitration Clauses

The following model clauses are designed to be adapted to specific commercial contexts. They should be reviewed by qualified Kenyan dispute-resolution counsel before incorporation into binding agreements.

Clause 1, Standard Commercial Arbitration Clause (Institutional, Nairobi Seat)

“Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration administered by [NCIA/ICC/LCIA] in accordance with its [Arbitration Rules] in force at the date of commencement of the arbitration. The seat of arbitration shall be Nairobi, Kenya. The language of the arbitration shall be English. The tribunal shall consist of [one/three] arbitrator(s). The parties consent to the jurisdiction of the Arbitral Court established under the Arbitration Act (as amended) for all applications related to these proceedings.”

Clause 2, Emergency Arbitration and Interim Relief

“The parties agree that, prior to the constitution of the tribunal, either party may apply for emergency interim relief under the Emergency Arbitrator Provisions of the [applicable institutional rules]. Any order or award made by an emergency arbitrator shall be binding on the parties and enforceable as an award under the Arbitration Act (as amended). Nothing in this clause shall prevent either party from applying to the Arbitral Court for interim measures of protection.”

Clause 3, DAB Escalation Clause (Construction Contracts)

“Disputes arising under or in connection with this Contract shall first be referred to the Dispute Adjudication Board constituted in accordance with [Sub-Clause X]. If the DAB has not been constituted within 28 days of either party’s written request for its constitution, or if the DAB fails to render a decision within 84 days of referral, the dispute may be referred directly to arbitration in accordance with Clause [Y] without the requirement for a DAB decision.”

Clause 4, Fast-Track / Summary Dismissal

“Where the amount in dispute does not exceed [KES amount / USD amount], the arbitration shall be conducted under the fast-track procedure rules of [institution]. The tribunal shall have the power to summarily dismiss any claim or defence that is manifestly without legal merit, in accordance with the provisions of the Arbitration Act (as amended).”

Enforceability of Arbitral Awards Kenya, A Practical Enforcement Checklist

The enforcement landscape under the Arbitration Amendment Bill 2025 is designed to be more streamlined, with the Arbitral Court serving as the primary enforcement forum. However, parties seeking to enforce, or resist enforcement of, arbitral awards must still follow a defined procedural sequence.

Checklist for Enforcing an Award in Kenya

1. Obtain a certified copy of the award from the tribunal or the administering institution, along with the original arbitration agreement (or a certified copy).
2. File an application for recognition and enforcement with the Arbitral Court. The application should be accompanied by the award, the arbitration agreement and any evidence of service on the opposing party.
3. Serve the application on the award debtor. The award debtor has a prescribed period to file any objections to enforcement.
4. Attend the enforcement hearing. The Arbitral Court will consider the application and any objections. Under the amended framework, the court’s review is limited to the grounds for refusal of enforcement codified in the Act, it does not review the merits of the underlying dispute.
5. Obtain leave to enforce. Once the Arbitral Court grants leave, the award may be enforced in the same manner as a judgment of the court, including through execution proceedings against the award debtor’s assets.
6. For foreign awards, confirm that the award is from a jurisdiction that is party to the New York Convention (Kenya is a signatory). The same Arbitral Court procedure applies, subject to the Convention’s additional recognition requirements.

Common Resisting Arguments and How the Bill Affects Them

Award debtors typically resist enforcement on grounds including lack of jurisdiction, procedural irregularity, inability to present one’s case and public-policy violations. The Bill is expected to narrow the scope of the public-policy ground, aligning it with the restrictive interpretation adopted in leading jurisdictions, meaning that mere errors of law or fact by the tribunal will not suffice to resist enforcement on public-policy grounds.

Additionally, the summary-dismissal mechanism may allow the Arbitral Court to dispose of frivolous enforcement challenges more quickly, reducing the tactical use of enforcement proceedings as a delay tool. For businesses, the overall trajectory is positive: awards seated in Kenya should become easier to enforce domestically, and foreign awards should benefit from a more predictable recognition process through the specialist court.

Immediate Compliance Action Plan for Businesses

General counsel and contract managers should prioritise the following actions, listed in order of urgency:

1. Conduct a contract audit. Identify all existing agreements containing arbitration clauses governed by Kenyan law or with a Kenyan seat. Flag clauses that lack emergency arbitration, interim-relief or Arbitral Court jurisdiction language.
2. Update your clause bank. Incorporate the model clauses above (adapted to your sector and risk profile) into your standard-form agreements immediately.
3. Review construction contracts for DAB provisions. Ensure that all active and pipeline construction contracts include a DAB-to-arbitration escalation mechanism with a defined fallback if the DAB is not constituted.
4. Notify counterparties. For material contracts where renegotiation is feasible, initiate discussions with counterparties about updating dispute-resolution clauses. A simple notification template might read: “We write to draw your attention to the proposed amendments under the Arbitration (Amendment) Bill 2025 and to propose updating the dispute-resolution clause in our Agreement dated [date] to reflect the new framework, including emergency arbitration and Arbitral Court jurisdiction provisions. We welcome a discussion at your earliest convenience.”
5. Assess third-party funding exposure. If your company has funded or is considering funding arbitration proceedings, review the funding arrangement against the Bill’s disclosure requirements.
6. Brief your dispute-resolution panel. Ensure that external counsel and in-house litigation teams are aware of the amendments and their procedural implications.
7. Schedule internal training. Conduct a briefing session for commercial teams, procurement managers and project directors on the key changes and their impact on day-to-day contract negotiations.
8. Monitor legislative progress. Track the Bill’s passage through Parliament and any committee-stage amendments that may alter the final enacted text. Consult the GLE lawyer directory to identify specialist Kenyan dispute-resolution counsel for ongoing guidance.

Conclusion, Recommended Next Steps Under Kenya Arbitration Law 2026

The Kenya Arbitration (Amendment) Bill 2025 explained in this guide represents a generational shift in how arbitration is practised and administered in the country. The three most critical actions for businesses are: first, audit existing contracts and update arbitration clauses to reference the Arbitral Court, emergency arbitration and third-party funding disclosure; second, incorporate DAB fallback mechanisms in all construction contracts; and third, brief your internal teams and external counsel on the changed enforcement landscape. As of 4 May 2026, the Bill’s trajectory suggests that operationalisation of the Arbitral Court and its supporting infrastructure is a question of when, not if.

Businesses that prepare now will be positioned to take advantage of a faster, more specialist and more predictable arbitration framework in Kenya.

Sources

1. Nairobi Centre for International Arbitration, Arbitration (Amendment) Bill 2025
2. Global Arbitration Review, Kenya: Arbitration (Amendment) Bill 2025 signals a reset
3. CIArb Kenya, Debunking & Demystifying the Arbitration Amendment and Construction Payments Adjudication Bills
4. Ahmednasir Abdullahi Advocates LLP, Commentary on the Arbitration (Amendment) Bill 2025
5. Bowmans, Kenya National Assembly Gazettes the Law of Contract (Amendment) Bill 2025
6. Lexology, Summary of Kenyan Arbitration Amendments
7. Jus Mundi / IBA, Kenya 2025 Country Guide