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TRIAL COURT: IN BRIEF HCCC No. 648 of 2004 BETWEEN SANTOWELS LIMITED VS STANBIC BANK KENYA LIMITED

TRIAL COURT: IN BRIEF HCCC No. 648 of 2004 BETWEEN SANTOWELS LIMITED VS STANBIC BANK KENYA LIMITED

In the case of Santowels Limited vs. Stanbic Bank Kenya Limited, Santowels filed a suit against Stanbic Bank, alleging that the bank had overcharged interest rates. The claim was based on Section 39 of the Central Bank of Kenya Act, CAP 491 (CBK Act), which allowed the Central Bank of Kenya (CBK) to set maximum and minimum interest rates.

Santowels contended that Stanbic Bank had exceeded the capped rates specified in Gazette Notice No. 1617 of 1990, which set a maximum interest rate of 16.5% per annum for loans up to three years. As of 31st October 2004, the alleged overcharged interest amounted to Kshs. 17,256,522.66 based on the capped rate and Kshs. 8,978,813.63 based on the contractual rate.

To support their claim, Santowels engaged the Interest Rates Advisory Centre Ltd. (IRAC) for recalculations. This resulted in overcharged interest claims of Kshs. 68,986,536.28 (capped rate) and Kshs. 10,499,411.74 (contractual rate).

Stanbic Bank’s Defense

Stanbic Bank argued that their relationship with Santowels was purely contractual and that interest rates were not regulated during the contract period. Additionally, Stanbic Bank contended that the suit was time-barred under the Limitation of Actions Act, CAP 22.

Court’s Findings

The Court determined that the suit was not time-barred, as the cause of action arose in 2003 when Santowels discovered the alleged overcharging. It was also found that Stanbic Bank’s interest rates were unlawful, as they were not authorized to charge above the capped rates. However, the recoverable amount was based on the contractual rates, and Santowels was awarded Kshs. 8,498,764.03, plus interest at court rates from the date of filing the suit until full payment, along with the costs of the suit.

Furthermore, the Court concluded that the relationship between Stanbic Bank and Santowels was contractual, not fiduciary, and that Santowels had failed to prove a breach of contract by Stanbic Bank.

Aggrieved by the entire judgment, both parties filed Civil Appeal No. 160 of 2018.


CIVIL APPEAL NO.160 OF 2018 BETWEEN SANTOWELS LIMITED VS. STANBIC BANK KENYA LIMITED

In the appeal, Santowels contended that, according to the evidence, the High Court should have awarded Kshs. 68,986,536.28 based on the capped interest rate of 16.5% per annum. Santowels aimed to have the High Court’s decision overturned and replaced with a verdict in its favor for the higher sum, along with interest at bank rates from the dates of the overcharge.

Conversely, Stanbic Bank argued that the suit was time-barred, that Section 39 of the CBK Act was not applicable, and that Section 44 of the Banking Act did not pertain to interest rate variations but rather to the rate of banking. Stanbic Bank further alleged that the High Court incorrectly distinguished between the rate of banking and contractual interest rates, that the High Court rewrote the contract by allowing interest rate variation, and improperly relied on IRAC’s computations.

Court of Appeal’s Ruling

The Court of Appeal held that:

  1. The suit was not time-barred.
  2. The High Court had evaluated the evidence thoroughly and correctly.
  3. The applicable interest rate was 16.5% between 1991 and 1997, as per Section 39 of the CBK Act. It found that Stanbic Bank had unlawfully increased the interest rate without the necessary approval under Section 44 of the Banking Act.
  4. The High Court erred in the figure awarded, correcting it to Kshs. 10,449,411.74.
  5. The Court found no merit in Stanbic’s cross-appeal and dismissed it.

Aggrieved by the entire judgment, Stanbic Bank sought leave to file an appeal at the Supreme Court, which leave was granted by the Court of Appeal.


PETITION NO. E005 OF 2023 BETWEEN STANBIC BANK KENYA LIMITED AND SANTOWELS LIMITED

In the petition before the Supreme Court, Stanbic Bank sought several declarations and orders:

  1. Declaration on Gazette Notice Revocation: A declaration that the revocation of Gazette Notice No. 1617 of 1990 by Gazette Notice No. 3348 of 1991 and the subsequent repeal of Sections 39, 40, and 41 of the CBK Act liberalized bank interest rates from control or regulation by the Cabinet Secretary for Finance through CBK.
  2. Section 44 of the Banking Act: A declaration that Section 44 of the Banking Act, which requires financial institutions to obtain approval from the Minister for Finance before any increase in the rate of banking or other charges, does not refer to the variation of interest rates under Section 52(1) of the Banking Act.
  3. Contractual Interest Rates: A declaration that the rate of banking and other charges under Section 44 of the Banking Act does not apply to contractual interest rates under Section 52 of the Banking Act.
  4. Statute-barred Claim: A declaration that the respondent’s claim was statute-barred.
  5. Authority of IRAC: A declaration that IRAC had no authority or jurisdiction to rewrite the various contracts between the parties.
  6. Setting Aside Judgments: An order setting aside the Court of Appeal’s judgment dated April 28, 2022, and allowing Stanbic’s cross-appeal with costs. An order setting aside the High Court’s judgment and dismissing the respondent’s suit with costs.
  7. Refund of Amounts: An order directing Santowels to refund the full decretal amount, all costs, and auctioneer’s charges with interest at court rates of 14% per annum from the date of payment until full payment.
  8. Costs Award: An award of costs for this appeal, Civil Appeal No. 160 of 2018, and HCCC No. 648 of 2004 to Stanbic.

Santowels’ Response

In response, Santowels’ Managing Director, Rajiv Raja, filed a replying affidavit on March 24, 2023, and a cross-appeal on March 31, 2023. Santowels contended that the Court of Appeal incorrectly awarded Kshs. 10,449,411.74 instead of Kshs. 68,986,536.28. Santowels sought a recalculation of the overcharge based on the unsanctioned capped interest rates and a judgment in the sum of Kshs. 68,986,536.28.

Supreme Court’s Observations

The Supreme Court observed that Stanbic Bank’s grounds of appeal went beyond the Court of Appeal’s certified issues, which centered on interpreting Sections 44 and 52 of the Banking Act. As a result, the Court limited its focus to the interpretation of these specific sections. Additionally, the Supreme Court dismissed Santowels’ cross-appeal for not adhering to procedural requirements, underlining the significance of following the prescribed procedures to engage the Supreme Court’s jurisdiction.


SUPREME COURT’S INTERPRETATION

Section 44 of the Banking Act

The Supreme Court interpreted Section 44 as follows:

  • Banking institutions are prohibited from increasing their banking charges without the Cabinet Secretary’s prior approval. This rule mandates banks to obtain permission before raising loan interest rates.
  • The term “rate of banking” encompasses interest rates applied to loans. This understanding is in line with the Banking Act’s objective of regulating banking operations and safeguarding consumers from unfair interest rates.
  • Moreover, Section 44 aims to maintain oversight and fairness by necessitating banks to seek approval from the Cabinet Secretary, ensuring that any interest rate adjustments are justifiable and not exploitative.

Section 52 of the Banking Act

The Supreme Court noted that Section 52 specifies:

  • Any violation of the Act or the Central Bank of Kenya Act will not nullify any contractual obligation between a bank and any individual. This implies that agreements between banks and customers remain valid even if the bank does not adhere to certain statutory obligations.
  • Section 52 prohibits banks from demanding interest or fees that surpass the maximum limit allowed by the Act or the Central Bank of Kenya Act. This provision safeguards customers from being exploited by banks charging exorbitant interest rates.

SUPREME COURT’S ORDERS

Subsequently, the Court issued the following orders:

  1. Approval Requirement: Banks must seek the Cabinet Secretary’s approval before increasing interest rates on loans and facilities. This ensures regulatory oversight and protection for consumers.
  2. Enforcement of Interest Rates: While contracts between banks and customers remain valid, banks cannot enforce interest rates or charges that exceed the statutory limits. This maintains the balance between contractual freedom and regulatory compliance.
  3. Law Interpretation: The court emphasized the need for a clear and consistent interpretation of the law, ensuring predictability and adherence to the rule of law.
  4. Revocation of Past Regulations: The court held that certain past regulations, like the capped interest rate of 16.5% per annum prescribed by Gazette Notice No. 1617 of 1990, were revoked, and thus, they no longer apply.
  5. Regulatory Oversight: Interest rates on loans and facilities are subject to regulatory oversight under Section 44 of the Banking Act. Banks must seek approval from the Cabinet Secretary before increasing interest rates.
  6. Consumer Protection: Section 52 ensures that contracts between banks and customers remain valid, but banks cannot charge interest rates beyond the statutory limits. This interpretation aims to balance consumer protection with the freedom to contract, ensuring a fair and regulated banking environment.

ADDITIONAL INFORMATION

WKA Advocates’ Expertise

We at WKA Advocates have a dedicated Banking Law department. Should you develop an interest in obtaining a loan facility, kindly contact us for a thorough review of the contract to ensure your rights as a borrower are protected.

Disclaimer

We hope this information is helpful in understanding the interesting developments in the Banking Sector. Please note that the contents of this newsletter are intended to provide a general guide to the subject matter. It should not be relied upon without legal advice on its contents.

Contact Information

Should you require further information or legal assistance on Compliance or any other legal issue, kindly feel free to contact us at:

  • Email: info@wka.co.ke
  • Website: wakilihub.co.ke/
  • Phone: +254 798 03 580
  • Address: Nairobi Hub, Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Authors

  • William Karoki, Founding Partner, Lawyer
  • Florence Mwende
Categories
real estate

Why You Should Use Professional Lawyers When Purchasing Real Estate Property in Kenya

Why You Should Use Professional Lawyers When Purchasing Real Estate Property in Kenya

Purchasing real estate property in Kenya is a significant investment that requires careful legal oversight to avoid risks and protect your interests. Engaging a professional lawyer, such as WKA Advocates, ensures a smooth and secure property transaction by navigating legal complexities and safeguarding against fraud. Here’s why involving a legal expert is essential when buying property in Kenya.

1. Ensuring Legal Due Diligence

Professional lawyers conduct thorough due diligence, verifying property titles, ownership records, and encumbrances. This process is critical to confirm that the seller has legal rights to sell the property and that there are no hidden liabilities, like outstanding loans or unresolved disputes, which could later affect the buyer.

2. Drafting and Reviewing Contracts

A lawyer provides invaluable support in drafting and reviewing sale agreements. These agreements set the terms and conditions of the purchase, and a lawyer ensures they are fair, clear, and legally binding, protecting clients from unexpected costs or adverse clauses.

3. Compliance with Kenyan Property Laws

Professional lawyers have a thorough understanding of Kenyan property laws, which regulate land ownership, taxes, and transfer procedures. For instance, foreign ownership is limited to leases of up to 99 years. Lawyers help buyers comply with these regulations, preventing legal complications.

4. Protection from Real Estate Scams

Kenya’s real estate market has seen rising cases of property scams. Professional lawyers can identify and avoid these fraud risks through rigorous background checks on agents, sellers, and pricing, reducing the likelihood of financial losses for buyers.

5. Adherence to Land Use and Zoning Laws

Zoning laws in Kenya specify how land can be used. Lawyers advise clients on zoning restrictions, helping them ensure their intended property use is legally permissible. This guidance prevents conflicts and regulatory issues down the line.

6. Efficient Ownership Transfer Process

The process of transferring property ownership involves multiple steps, including registration and payment of taxes. Professional lawyers streamline this process, ensuring all documents are correctly filed and reducing delays or potential errors.

7. Dispute Resolution and Litigation Support

In case of post-purchase disputes, such as boundary disagreements or trespassing claims, a lawyer offers legal representation to resolve issues swiftly. Their support ensures that buyers have a strong advocate in any potential legal conflicts.

8. Professional Expertise and Reputation

Working with a reputable law firm like WKA Advocates gives buyers peace of mind, knowing they are represented by experts who prioritize integrity and transparency in every transaction.

Protect Your Real Estate Investment with Legal Expertise

Purchasing real estate is a long-term investment that requires legal security. Engaging a professional lawyer safeguards you from fraud, ensures compliance, and provides a seamless transaction process. Secure your property investment by consulting a trusted law firm and gain the confidence of knowing your purchase is legally sound and protected.

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Why WKA Advocates is the Best Law Firm in Kenya

Why WKA Advocates is the Best Law Firm in Kenya

When searching for premier law firms in Nairobi, Kenya, WKA Advocates stands out as the top choice for clients seeking integrity, professionalism, and a comprehensive range of legal services. With a strong reputation as a preferred law firm in Kenya, WKA Advocates provides unparalleled legal representation, making it a trusted partner for individuals, corporations, and Kenyan investors in the diaspora.

Exceptional Legal Expertise Across Diverse Practice Areas

WKA Advocates, an elite law firm in Nairobi, has earned its place among Kenya’s leading law firms by offering expert services across multiple areas of law. The firm’s practice areas include Immigration Law, Corporate Commercial Law, Data Privacy and ICT Law, Real Estate and Conveyancing, and Dispute Resolution. Each of these services is led by highly qualified lawyers who bring deep knowledge and experience, ensuring that WKA Advocates delivers results that align with client needs and exceed expectations.

For clients navigating complex immigration processes or needing expert advice in data privacy, WKA Advocates provides solutions that simplify and streamline legal challenges. The firm’s proficiency in corporate and commercial law is ideal for businesses looking to establish or grow their operations in Kenya, making WKA Advocates a top choice for corporations and investors.

Commitment to Integrity and Accountability

What sets WKA Advocates apart from other law firms in Nairobi is its unwavering commitment to core values—integrity, competence, and accountability. Each lawyer at WKA Advocates operates with a dedication to ethical standards, prioritizing clients’ needs and maintaining transparent communication throughout each case. This commitment to high standards makes WKA Advocates a standout among top law firms in Kenya, with clients trusting the firm to handle their most critical legal matters.

Trusted Partner for Diaspora Investors

Known as a preferred law firm by Kenyan investors abroad, WKA Advocates understands the unique needs of the diaspora community. Investors looking for trustworthy representation in Kenya rely on WKA Advocates for seamless, efficient, and results-driven legal support. The firm’s client-centered approach and attention to detail ensure that investments and property transactions proceed smoothly, whether the client is local or international.

Progressive Legal Solutions in Kenya

As one of the best law firms in Nairobi, WKA Advocates prides itself on delivering innovative, timely legal solutions. The firm leverages its extensive expertise to provide pragmatic advice and progressive legal strategies, allowing clients to make informed decisions. WKA Advocates’ commitment to staying at the forefront of legal developments in Kenya is part of its dedication to excellence, ensuring clients receive top-tier representation.

Why WKA Advocates is the Leading Law Firm in Nairobi

For clients looking to work with top law firms in Nairobi, Kenya, WKA Advocates is the ultimate choice. With expertise in key areas such as real estate law, corporate law, and immigration, the firm ensures that each case receives the dedicated focus and personalized attention it deserves. Clients seeking reliable legal services in Nairobi know that WKA Advocates not only meets but exceeds their expectations, offering a blend of experience, integrity, and innovative legal solutions that make it Kenya’s top law firm.

When excellence, client commitment, and a results-driven approach are essential, WKA Advocates is the best law firm in Nairobi, Kenya.

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‘SALIMIA YEYE’ (SAY HELLO TO THEM)- BALANCING RIGHTS TO PRIVACY VS PUBLIC INTEREST

‘SALIMIA YEYE’ (SAY HELLO TO THEM)- BALANCING RIGHTS TO PRIVACY VS PUBLIC INTEREST

Recently, Kenya has seen a surprising shift in its political landscape. A ‘revolution’ led by the youth referred to as the Gen-Z movement has emerged. This movement is particularly intriguing as it comprises young individuals without a leader or any political or ethnic ties. The resilience of the movement has even led to Kenya being recognized as ‘the giant of Africa’.

The inception of this transformative movement stemmed from the contentious Finance Bill 2024, which was backed by the ruling party United Democratic Alliance (UDA) with the intention of enacting it into law. The Finance Bill, 2024 aimed at imposing punitive taxes on Kenyans, leading to a further increase in the cost of living. This move came at a time when Kenyans were already grappling with challenging financial situations and uncertainties in the economic landscape. The proposal sparked widespread public outrage and unrest, as the political elite were perceived to be living lavishly at the expense of the ordinary mwananchi. Citizens voiced their dissent towards the proposed Finance Bill 2024 on various digital platforms like Facebook, Instagram, and X (formerly known as Twitter), while a significant portion of the political class continued to support the Bill.

The younger generation, previously perceived as disengaged from politics, took to the streets to exercise their right to protest and demonstrate, as outlined in Article 37 of the Constitution of Kenya (the Constitution). The theme of the peaceful demonstrations was #REJECT THE FINANCE BILL 2024. Gen-Z filled Nairobi’s Central Business District, Mombasa, Eldoret, Nakuru and other parts of the country, chanting patriotic songs and the Kenyan National Anthem to voice their opposition to a law that would raise the cost of living, affecting basic items like bread, sanitary towels, cancer treatment, and diapers. The Kenyan police responded with brutality, but that did not deter the movement. In any case, it motivated Kenyans to fight more.

Despite public appeals, a majority of National Assembly Members, mainly from the ruling party, voted in favour of the Finance Bill 2024 during the first reading. This raises questions about whom the National Assembly members truly represent and how devolution empowers local mwananchi if their representatives outrightly ignore their pleas.

Gen-Z responded by sharing the personal information of political figures, the police officers who exercised brutality during the protests, and the personal information of their family members, on social media for the public to urge them to reject the Bill. Further, members of the clergy were called out for remaining silent at a time when their valued contribution towards rejecting the Finance Bill 2024 would have been appreciated. The public intensified pressure, leading to the announcement of amendments to the Finance Bill 2024. However, Gen-Z persisted with protests, demanding the Bill’s complete rejection, not just amendments. On June 25, 2024, history was made as the younger generation took to the streets with the intention of occupying Parliament to urge the members of National Assembly to reject the Bill. Thousands of youth marched to the streets and courageously rejected the Finance Bill 2024. The peaceful protests faced a harsh police crackdown, with many protesters arrested, beaten, abducted, and some killed. The streets of Nairobi were filled with the pungent smell of teargas. Despite the challenges, the movement remained steadfast and persisted with the hashtag #REJECT NOT AMEND and #RUTO MUST GO.

Meanwhile, while protests were ongoing, a majority of the members of National Assembly voted in favour of the Finance Bill 2024 and the Bill was forwarded to the President for his assent. The Gen-Z were so enraged and determined, that they overpowered the police and stormed into the Parliament building. Various political leaders were captured on videos escaping the wrath of the people through panya-routes aided by their security guards. Gen-Z stormed into Parliament’s kitchen and enjoyed the sumptuous meal prepared for the politicians and some made their way into the offices where they sampled drinks to wash down the meal. Similarly, in Mombasa, protesters stormed into the County Assembly and made themselves comfortable.

International attention was drawn to Kenya’s protests, with over 4 million posts under #REJECTFINANCEBILL2024 on social media. On June 26, 2024, President William Samoei Ruto succumbed to public pressure and declined to assent to the Bill, recommending its deletion. He further made a press statement promising to: dissolve 47 State Corporations with duplicative functions; suspend the appointment of Chief Administrative Secretaries; reduce the number of advisors in government by 50%;

remove the budget lines for the budget cuts for the offices of the First Lady, the spouses of the Deputy President and Prime Cabinet Secretary;

remove the budgetary provisions for confidential budgets in various Executive offices,

including the President’s office; suspend purchase of new motor vehicles by government for 12 months, except for security agencies;

suspend all non-essential travel by state officers; and ban the participation of state and public officer in harambees.

The President invited Gen-Z for a dialogue on social media (X space) which thousands of young people attended and voiced their concerns with the President’s administration. The President was able to respond to queries raised and promised to rectify the issues raised. This marked a rare occasion where there was an elaborate communication between the government and the governed. Further, it made President William Samoei Ruto the first president to have a dialogue on X as a result of the digital movement. Shortly thereafter, on 11th July 2024, the President dissolved his entire Cabinet.

RIGHT TO PRIVACY VS PUBLIC INTEREST

 The issue of data privacy versus public interest arose, with concerns raised by the Data Protection Commissioner  (ODPC),  Immaculate  Kassait,  regarding  the  sharing  of  personal  information  of political figures and various police officers on social media without consent, violating their privacy rights.

Following this statement, members of the public leaked her phone number for people to salimia yeye. Screenshots were later shared of how the Gen-Z had salimiad the ODPC. Among the state officers whose personal data was leaked include the President, deputy President, the Speaker of the National Assembly, the Prime Cabinet Secretary and the opposition leader.

This brings us to the question, what is the fine balance between privacy and public interest? We must ask ourselves, do public or state officers have a right to privacy while performing public duties or duties related to their respective offices?

 

Who is a public officer in Kenya?

According to the Public Officers Ethics Act, No.4 of 2003, a “public officer” in Kenya means any officer, employee or member, including an unpaid, part-time or temporary officer, employee or member, of any of the following-

  1. the (national) Government or any department, service or undertaking of the Government;
  2. the National Assembly or the Parliamentary Service;
  3. a local authority (such as a county government);
  4. any corporation, council, board, committee or other body which has the power to act under and for the purposes of any written law relating to local government, public health or undertakings of public utility or otherwise to administer funds belonging to or granted by the Government or money raised by rates, taxes or charges in pursuance of any such law;
  5. a co-operative society established under the Co-operative Societies Act; (Provided that the Public Officers Ethics Act shall apply to an officer of a co-operative society within the meaning of the )
  6. a public university;
  7. any other body prescribed by regulation for the purposes of this paragraph;

Who is a state officer in Kenya?

 Based on Article 260 of the Constitution that defines “State office”, the list of state officers in Kenya consists of the–

  1. President;
  2. Deputy President;
  3. Cabinet Secretary;
  4. Member of Parliament (Member of the National Assembly, Member of the Senate, County Woman Representative);
  5. Judges and Magistrates;
  6. Member of a commission to which Chapter Fifteen (of the Constitution) applies;
  7. Holder of an independent office to which Chapter Fifteen applies;
  8. member of a county assembly, governor or deputy governor of a county, or other members of the executive committee of a county government;
  9. Attorney-General;
  10. Director of Public Prosecutions;
  11. Secretary to the Cabinet;
  12. Principal Secretary;
  13. Chief of the Kenya Defence Forces;
  14. Commander of a service of the Kenya Defence Forces;
  15. Director-General of the National Intelligence Service;
  16. Inspector-General, and the Deputy Inspectors-General, of the National Police Service; or
  17. An office established and designated as a State office by national legislation;

What is the public interest?

 Public interest is the welfare or well-being of the general public and society. In substantive or policy terms, the public interest may be envisaged as embracing those activities necessary to the safety of the state and the welfare of the community: defense, police protection, education, and public health and sanitation.

In legal practice, the concept of public interest is often fluid and context-specific, requiring a balanced interpretation that considers various societal needs and rights. Courts and legal professionals frequently rely on precedents, statutory interpretations, and constitutional principles to guide their understanding of public interest in different situations.

Public participation vs privacy

 Article 118 of the Constitution requires the Parliament to conduct its business in an open manner and also to facilitate public participation and involvement in the legislative and other business of Parliament and its committees. Public Participation refers to the process by which citizens, as individuals, groups or communities (also known as stakeholders), take part in the conduct of public affairs, interact with the state and other non-state actors to influence decisions, policies, programs, legislation and provide oversight in service delivery,

development and other matters concerning their governance and public interest, either directly or through freely chosen representatives.

In Kenya, the common method of public engagement involves requesting the public to provide feedback on proposed laws through a memorandum. Nonetheless, this approach is outdated as it excludes many individuals who are unable to read and write. Additionally, awareness about the platforms where these memoranda are published is limited. Consequently, this method hinders a large portion of the public from sharing their opinions on proposed legislation.

Further, the state officers seem to have made ignoring public opinions their favorite pastime, rendering public engagement about as useful as a chocolate teapot. So, even though leaking politicians’ and police officers’ phone numbers might raise a few eyebrows in the privacy department, it did create a supercharged platform for the public to have their say on the Finance Bill 2024. It’s like a modern-day democracy dance-off where the public calls the shots and the politicians boogie to the tune. Now, with politicians sweating over their data being spilled, a new era of accountability seems to be unfolding.

Privacy rights are enshrined in the following legislations:

  1. Article 31 of the Constitution provides that:-

“Every person has the right to privacy, which includes the right not to have:–

  • their person, home, or property searched;
  •  their possessions seized;
  •  information relating to their family or private affairs unnecessarily required, or revealed; or
  •  the privacy of their communications ”

2.    Data Protection Act, 2019 (DPA, 2019)

 This Act was enacted in 2019 to give effect to Articles 31(c) and (d) of the Constitution of Kenya which guarantee the right of every person not to have “information relating to their family or private affairs unnecessarily required or revealed” and the right not to have “the privacy of their communications infringed”.

3.  The European Union’s General Data Protection Regulations (GDPR).

 The DPA, 2019 borrowed heavily from the GDPR In 1995, the EU passed the European Data Protection Directive, establishing minimum data privacy and security standards, upon which each member state based its own implementing law. However, in 2011, a Google user sued the company for scanning her emails. Two months after that, Europe’s data protection authority declared that the EU needed “a comprehensive approach on personal data protection” and work began to update the 1995 directive. The GDPR entered into force in 2016 after passing European Parliament, and as of May 25, 2018, all organizations were required to be compliant.

However, both the DPA, 2019 and the GDRP provide an exception to the processing of personal data where it is a matter of public interest.

Section 30 of the DPA, 2019 stipulates that a data controller or data processor shall not process personal data, unless the data subject consents to the processing for one or more specified purposes or the processing is necessary for the exercise, by any person in the public interest of any other functions of a public nature.

Further, Section 51 of the DPA, 2019 provides that the processing of personal data is exempt

from the provisions of this Act if it is necessary for national security or public interest.

 Article 6 of the GDPR lists public interest among the instances in which it’s legal to process personal data.

Therefore, did leaking the mobile numbers of public and state officers, and those of their family members breach their right to privacy?

Looking at Article 31 (c) of the Constitution, the online circulation of details of the state officer’s family members might amount to a violation of their rights to privacy under the Constitution and the DPA Act, 2019. This is because they do not not hold public offices and they did not provide consent.

However, the circulation of the details of state officers and public officers does not amount to a breach of privacy. These officers hold public positions, so the public should have easy access to them. This can be through physical visits to their office doors or communication through messages, emails, or phone calls. Furthermore, the duties performed by public and state officers are of public interest, which aspect is listed under sections 30 and 51 of the DPA, 2019 as an exception for disclosure of personal information. Hence, there is no distinction between a state/public officer and the state/public office that the officer occupies, unless the political elite claim the authority to restrict public participation in matters of public interest.

 To elaborate further, one of the duties of the Parliament as envisaged in the Constitution is to facilitate public participation and involvement in the legislative and other business of Parliament and its committees. The Members of Parliament are supposed to represent the will of the people and engage them in their business. However, it is clear that some of them compromised public interest in favour of their personal interest contrary to Article 75 of the Constitution by voting in favour of the Finance Bill 2024. This is also contrary to the provisions of Article 1 of the Constitution which opines that all sovereign power belongs to the people of Kenya and shall be exercised either directly or through their democratically elected representatives. Therefore, reaching out to such Members of the National Assembly to express dissatisfaction with their services does not amount to a breach of their right to privacy. Rather, it is the civic and patriotic duty of every Kenyan citizen to keep the political class in check to prevent corruption and abuse of office.

Furthermore, who are the offended state officers and public officers going to sue? Gen-Z as a whole? Select random individuals to intimidate the rest of the public? Is the Office of the Data Protection Commissioner going to institute complaints suo moto?

 It is high time that a proper mode of public participation is established in Kenya. It proved rather disconcerting for the esteemed leaders to profess ignorance of the populace’s dissent against the Finance Bill 2024 in Kenya, especially with the resounding echo of #REJECTFINANCEBILL2024 resonating across social realms for months. Therefore, introducing digital gatherings (barazas) could serve as a celestial bridge, fostering a transparent exchange between the government and the governed. Consider, for instance, the dialogue which unfolded on X platform (space) between the  President,  and  the  Gen-Z  movement.  This  interaction  bestowed  upon  the  President  the chance to listen directly to the voices of the people and respond to their questions. Such marvels, folks, embody the essence of accountability.

The public and state officials who don’t appreciate the salimia yeye mode of public participation chosen by the Gen-Z movement, have been raising claims of defamation, as screenshots of their private conversations and bank accounts were exposed. However, in the USA, different courts have ruled its difficult to defame politicians. The main case in this area of the law is New York Times Co. v. Sullivan, which arose from allegations of police corruption in Alabama during the civil rights era. The U.S. Supreme Court ruled that the newspaper was not liable to the police commissioner who brought the claim, since it did not knowingly publish a false statement or fail to check its accuracy. The Court felt that the right of public officials to perform their duties without risking liability for defamation required a strong counterbalancing protection for citizens who are criticizing the actions of public officials. Therefore, the burden of proof lies with the Political class to proof defamation.

CONCLUSION

 Due to weaknesses and obvious loopholes, the quickest avenue which police officers have taken is to charge the individual arrested during the protests. However, the Law Society of Kenya, under the leadership of its president, has been actively and relentlessly offering pro-bono services to the protesters by bailing them out and further contributing towards cash bail for the individuals who are unable to afford it. Indeed, these are interesting times to be alive!

We are eager to observe the actions that the ODPC will take regarding the allegations of a data breach. We anticipate the politicians who will file complaints and the evidence they will present, as we are witnessing a rise in digital activism. This is a period where our Data Protection Laws are being tested. Ultimately, public interest appears to be prevailing.We hope this information is helpful in understanding the delicate balance between the right to privacy and public interest in Kenya. Please note that the contents of this newsletter are intended to provide a general guide t o the subject matter. It should not be relied upon without legal advice on its contents.

Should you require further information or legal assistance on Compliance or any other legal issue, kindly feel free to contact us at info@wka.co.ke, wakilihub.co.ke/, +254 798 03 580, Nairobi Hub: Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

Founding Partner:

  • William Karoki

Associate:

  • Florence Mwende

Candidate Attorney:

  • Erick Karangatha
Categories
real estate

lawyer to assist to buy property in nairobi

Why You Need a Lawyer to Assist in Buying Property in Nairobi

Purchasing property in Nairobi involves navigating complex legal and regulatory requirements that can be difficult to manage without expert guidance.

Property Lawyers in Nairobi | WKA Advocates

WKA Advocates provides expert legal services for property transactions and real estate development in Nairobi, Kenya. Our experienced property lawyers specialize in conveyancing, real estate law, and construction law, offering comprehensive legal solutions for property buyers and developers.

Real Estate Legal Services in Kenya

We offer a full range of services, including:

  • Buying and selling property
  • Land use and planning
  • Joint venture agreements
  • Real estate disputes
  • Property tax and investment planning

Our lawyers guide clients through complex property transactions, including title processing, subdivisions, amalgamations, and construction contracts.

Why Hire a Lawyer to Buy Property in Nairobi

Buying property in Kenya can be complex, with regulatory hurdles and legal risks. At WKA Advocates, we assist with due diligence, land searches, contract negotiations, and compliance to ensure smooth transactions. With over 20 years of experience, we protect your investment and streamline the property buying process.

Expert Real Estate Development Lawyers

Whether developing commercial centers, residential estates, or industrial parks, WKA Advocates provides legal advice on land use, zoning, construction agreements, and financing. Our team supports developers and investors in all aspects of real estate law.

Contact WKA Advocates

For legal assistance in buying property in Nairobi or real estate development projects, contact WKA Advocates today.

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Legal Support for UK Citizens and Residents with Interests in Kenya

Legal Support for UK Citizens and Residents with Interests in Kenya

At WKA Advocates, we specialize in providing top-tier legal services to UK citizens and residents with legal matters or business interests in Kenya. Whether you’re based in the UK and need legal representation in Kenya, or have personal or commercial ties in the region, our experienced team is here to help. With expertise in both UK and Kenyan legal systems, we ensure smooth, effective legal support across borders.

Comprehensive Legal Services for UK Clients in Kenya

Our legal services are designed to meet the unique needs of UK citizens and businesses with interests in Kenya. Whether it’s property transactions, corporate law, or family matters, WKA Advocates offers expert legal solutions to protect your interests. We provide the following key services:

  • Property Transactions in Kenya: We help UK citizens buy, sell, or lease property in Kenya, ensuring all transactions comply with Kenyan property laws. Our team offers expert guidance on tax-efficient ownership structures to maximize your investments.
  • Corporate and Commercial Law: For UK businesses or investors entering the Kenyan market, we provide comprehensive advice on setting up operations, joint ventures, and regulatory compliance. Our goal is to safeguard your business interests while ensuring smooth operations.
  • Dispute Resolution and Litigation: If you’re involved in a legal dispute in Kenya, our experienced litigation team is ready to represent your interests in court or through alternative dispute resolution mechanisms. We focus on providing swift and cost-effective solutions to resolve your case.
  • Succession and Estate Planning: UK citizens with assets in Kenya can rely on us for estate planning, wills, and probate matters. We ensure your estate is managed according to both UK and Kenyan laws, helping you minimize taxes and maximize benefits for your heirs.
  • Family Law Services: From divorce to child custody and co-parenting, our family law team handles sensitive cross-border family matters involving both UK and Kenyan jurisdictions. We provide compassionate support while delivering practical legal solutions.

Why Choose WKA Advocates for Legal Services in Kenya?

  • Expertise in UK and Kenyan Legal Systems: Our deep knowledge of both UK and Kenyan law ensures that your legal matters are handled seamlessly, no matter where you’re based.
  • Trusted Legal Network: We collaborate with a global network of legal professionals, offering you expert representation and advice both in Kenya and the UK.
  • Tailored Legal Solutions: We understand that every client’s situation is unique. That’s why we provide personalized legal strategies tailored to your specific needs, whether you’re managing business interests or personal legal matters in Kenya.

Your Trusted Partner for Legal Matters in Kenya

For UK citizens and residents seeking legal assistance in Kenya, WKA Advocates is your trusted partner. Whether you’re investing in Kenyan property, handling corporate legal issues, or navigating family law across borders, we offer expert legal guidance every step of the way.

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Understanding Work Permits in Kenya

Understanding Work Permits in Kenya

Expert Guidance from WKA Advocates

Securing a work permit in Kenya is a vital step for expatriates and corporations aiming to employ foreign talent. WKA Advocates simplifies the application process, ensuring compliance with immigration laws and reducing administrative challenges.

Work Permit Application Services in Kenya

Our team assists in preparing and filing work permit applications, ensuring all documentation meets regulatory standards. From investor visas to employment-based permits, we cater to diverse professional needs.

Legal Representation in Work Permit Appeals

In cases of permit denial or disputes, our legal experts provide representation during appeals or administrative reviews. We also assist in obtaining ministerial waivers for unique circumstances.

Ensuring Seamless Immigration Processes for Corporations

For businesses, we create comprehensive immigration strategies to facilitate smooth employee transitions. This includes advisory services on Kenya’s immigration regulations and compliance requirements.

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A NEW DAWN FOR PUBLIC BENEFIT ORGANIZATIONS (PBOs) IN KENYA

A New Dawn for Public Benefit Organizations (PBOs) in Kenya

The Public Benefit Organizations Act, 2013 (PBO Act) has officially replaced the Non-Governmental Organizations Coordination Act, CAP 134 (NGO Act). This change, as outlined in the Kenya Gazette Supplement No. 100, under Legal Notice No. 78, was enacted by the Cabinet Secretary for Interior and National Administration, Hon. Kithure Kindiki. The PBO Act comes into effect today, May 14, 2024.

Public Benefit Organizations Act, 2013: From Inception to Implementation in 2024

The Public Benefit Organizations Act, 2013 was passed by Parliament in December 2012 and received approval from former President Mwai Kibaki in January 2013. Despite its passage, the Act remained inactive until May 9, 2024. On this date, the Cabinet Secretary for Interior and National Administration exercised the powers granted by Section 1 of the PBO Act, designating May 14, 2024, as the date for its implementation.

 

Public Benefit Organizations Act, 2013: A Detailed Overview and Analysis

The Public Benefit Organizations Act, 2013 (PBO Act) defines a “public benefit organization” (PBO) as a voluntary grouping of individuals or organizations, which can be membership-based or non-membership-based, and is characterized by being autonomous, non-partisan, and non-profit. According to the PBO Act, a PBO must:

  1. Be organized and operate locally, nationally, or internationally.
  2. Engage in public benefit activities in any of the areas outlined in the Sixth Schedule.
  3. Be registered as such by the Authority.

Key Enhancements Under the PBO Act:

  1. Introduction of the Public Benefit Organizations Regulatory Authority:
    • The Authority, under Section 34, is responsible for registering and de-registering PBOs, advising the government on their activities, maintaining the register, reviewing annual reports, ensuring compliance, and providing advice and training.
  2. Clear Guidelines for Registration:
    • Section 8 specifies requirements for registration, including necessary documentation for applications, registration criteria for international NGOs as PBOs, and constitutional information for PBOs.
  3. Defined Timelines for Registration Processing:
    • Section 9 mandates the issuance of certificates within 60 days of application receipt, providing more clarity than the NGO Act.
  4. Reduced Administrative Discretion in Registration:
    • The Act requires the Authority to notify applicants in writing if their application is unsatisfactory, detailing reasons and providing up to 30 days to comply, promoting transparency compared to the NGO Act.
  5. Establishment of the Public Benefit Organization Disputes Tribunal:
    • Section 50 creates the Tribunal to handle complaints and appeals related to the Act, offering a non-judicial resolution mechanism.
  6. Formation of Self-Regulation Forums:
    • Section 20 allows organizations to form forums for self-regulation, tasked with developing and enforcing conduct standards.
  7. Creation of the National Federation of Public Benefit Organizations:
    • This Federation serves as an umbrella entity for registered PBOs and self-regulation forums, monitoring performance and advising the Authority.
  8. Provision of Government Support:
    • The Second Schedule outlines government support including tax exemptions, incentives for donations, direct financing, preferential public procurement treatment, and access to training.

Potential Challenges Under the PBO Act:

  1. Complex Registration Process:
    • The detailed requirements in Section 8 may result in a lengthy and complex registration process.
  2. Uncertain Registration Costs:
    • The registration fee is yet to be prescribed, adding uncertainty to the registration costs.
  3. Tedious Financial Reporting Requirements:
    • Section 30’s requirement for maintaining proper books and preparing annual statements with independent auditor opinions could be burdensome.
  4. Notification of Organizational Changes:
    • Section 8(8) requires notification to the Authority within 60 days of changes in membership, governing body, or constitution, which may be tedious for organizations.

We hope this overview clarifies the implications of the Public Benefit Organizations Act, 2013. For specific legal advice or further information on compliance, please contact us at info@wka.co.ke or visit our website wakilihub.co.ke/. You can also reach us at +254 798 03 580 or visit our Nairobi Hub at Parklands, Valley View Business Park, 6th Floor, City Park Drive, Off Limuru Road.

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Find a Professional Overseas Lawyer in the UK

Find a Professional Overseas Lawyer in the UK: WKA Advocates, Nairobi, Kenya

At WKA Advocates, based in Nairobi, Kenya, we provide top-tier legal services to clients who need professional assistance with legal matters in the UK. If you’re looking for help with employment law, property purchases, UK immigration, or company registration in London, we are here to make the process smooth and stress-free. With our global network, we connect Kenyan clients with trusted solicitors in the UK, ensuring efficient and cost-effective solutions.

Overseas Solicitors in London for Kenyan Clients

Navigating UK legal matters from Kenya can be challenging, but with WKA Advocates, you can rest assured that you are in good hands. We partner with experienced UK solicitors to offer a wide range of services to our Kenyan clients. Here’s how we can assist you:

1. Employment Law in the UK

  • Our team provides expert legal advice for Kenyans seeking employment opportunities in the UK. We collaborate with top employment solicitors in London to handle employment contracts, workplace disputes, and UK employment law compliance. If you’re planning to work in the UK or need legal assistance with job-related issues, we have the expertise to guide you.

2. Buying Property in the UK from Kenya

  • If you’re a Kenyan investor or buyer interested in purchasing property in the UK, our overseas property solicitors are ready to assist. From residential properties to commercial investments, we help you navigate the process smoothly, ensuring compliance with UK property laws. We also assist with tenancy agreements and ongoing property management.

3. UK Immigration Legal Assistance

  • Immigration processes can be complicated, especially when moving from Kenya to the UK. Whether you’re applying for a UK visa, indefinite leave to remain, or need assistance with family visas, our team works closely with London-based immigration lawyers to handle your case. We guide you through each step to ensure a successful outcome.

4. Company Registration in the UK for Kenyan Entrepreneurs

  • Starting a business in the UK from Kenya requires expert legal guidance. WKA Advocates helps Kenyan entrepreneurs navigate the complex process of company registration, business immigration, and compliance with UK corporate regulations. Our team ensures that your business is set up for success in the UK market.

Why Choose WKA Advocates?

  1. Professional Expertise: With a combination of local knowledge and international legal expertise, we offer the best legal support for Kenyan clients dealing with legal matters in the UK.
  2. Tailored Legal Solutions: We take a personalized approach to each case, providing customized solutions that address the specific needs of our clients. Whether it’s immigration, employment, or property issues, we have you covered.
  3. Cost-Effective and Efficient: We provide legal services that are both affordable and efficient, helping you manage your UK legal needs without unnecessary costs. By leveraging technology and strong partnerships in London, we ensure a smooth process for all our clients.
  4. In-Person and Remote Services: Most of our services can be handled remotely, but if necessary, we can arrange face-to-face meetings in Nairobi or London to discuss your legal matters in detail.

Contact WKA Advocates Today

Looking for professional legal help in the UK while based in Kenya? WKA Advocates is your trusted partner for navigating UK legal systems. Whether you’re buying property, setting up a business, or dealing with immigration matters, we make the process easy and hassle-free.

Contact WKA Advocates today for expert advice on UK legal matters. We’re committed to providing the best overseas legal support for our clients in Nairobi and across Kenya.

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Cost of Trademark Registration in Kenya

Cost of Trademark Registration in Kenya

A Detailed Breakdown

Trademark registration involves various costs depending on the specifics of your application. Understanding these expenses can help you budget effectively and avoid surprises. This article provides a detailed breakdown of the costs of registering and renewing a trademark in Kenya.

Understanding Trademark Costs
The cost of trademark registration depends on the number of classes of goods or services and the complexity of your application. Key costs include:

  • Application Fees: USD 200 for the first class and USD 150 for each additional class.
  • Search Fees: USD 20 for a preliminary trademark search.
  • Renewal Fees: USD 200 for the first class every 10 years.

Detailed Cost Table

Description Fee (USD) Form
Application fee for the first class 200 TM2
Application fee for each subsequent class 150 TM2
Registration fee for the first class 150
Renewal fee for the first class (every 10 years) 200 TM10
Opposition filing fee for the first class 250 TM6

For comprehensive cost guidance, consult WKA Advocates today.