State of ADR Discussion

The State of ADR in Kenya roundtable discussion was the 2nd edition. The event sought to keep a score card on how Kenya as a country is doing in its use of ADR as a tool to access justice. Article 159 2 of the constitution of Kenya clearly articulates the use of ADR as a recourse to justice and its use in resolution of disputes. The judiciary has also been charged with its promotion, a role that it has taken most diligently as is showcased by its strategic plan commonly known as STAJ. other stakeholders have also been pivotal in taking up their respective roles in its promotion. From training, to appointments, to capacity building to creating awareness to name a few.

Every two years, Ciarb Kenya with the help of Stakeholders, has carried out research into the State of ADR in Kenya to develop a report that gives sight to how each of the respective ADR mechanism is fairing.

The aim is to appreciate how far we have come, identify gaps and opportunities, challenges and impediments and at the end of the day take part in this stakeholder’s discussion on how best to proceed into the future, all cards on the table using data driven decision making strategies.

The Roundtable discussion was a free event that took place on Friday 8th December 2023 at the Mercure hotel in Nairobi

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ROUNDTABLE REPORT: Alternative Dispute Resolution for Small and Medium Enterprises in Kenya

1. Background and Context  Small and Medium Enterprises (SMEs) form the backbone of Kenya’s economy,  contributing approximately 33% of GDP and employing over 80% of the workforce outside  the agricultural sector. Despite this significance, SMEs remain disproportionately exposed  to commercial disputes that are costly, protracted, and frequently unresolved through  formal judicial channels.  The Chartered Institute of Arbitrators (Ciarb) Kenya Branch convened a multi-stakeholder  roundtable to interrogate the landscape of dispute resolution for SMEs, assess the efficacy  of existing mechanisms, and identify entry points for scalable Alternative Dispute  Resolution (ADR) interventions. The roundtable convened representatives from the Micro  and Small Enterprise Authority (MSEA), the Judiciary, the Kenya National Chamber of  Commerce and Industry (KNCCI), the financial sector, the insurance industry, and the  youth entrepreneurship ecosystem.  This report summarises the deliberations and perspectives presented by each  stakeholder group, and distills shared conclusions, identified gaps, and proposed areas of  partnership.  2. Micro and Small Enterprise Authority (MSEA) â€” Perspective  Presenters: Maureen Gachogo- Registrar.                       :Agnes Thiong’o- Senior legal officer.  2.1 Nature and Typology of Disputes in the SME Sector  MSEA’s frontline engagement with the SME ecosystem reveals that disputes within this  sector are diverse in character and frequently multi-layered. The Authority identified three  principal categories of disputes commonly encountered:  •Governance disputes: These arise within SME structures, particularly cooperatives,  chamas, and registered business associations, where disagreements over  leadership, profit-sharing, decision-making authority, and member obligations  create internal fractures. Such disputes, if unresolved, often result in enterprise  dissolution or significant productive loss.  •Resource disputes â€“ Land use: A recurring category of disputes involves access to  and use of land for business operations. These disputes frequently involve 

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