AGADVOKS GLOBALKENYA · ENGLISH
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Arbitration Act

3. Interpretation

Edition: 2022-12-31 · In force

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3. Interpretation

(1)In this Act, unless the context otherwise requires—"arbitration" means any arbitration whether or not administered by a permanent arbitral institution;"arbitration agreement" means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not;"arbitral award" means any award of an arbitral tribunal and includes an interim arbitral award;"arbitral tribunal" means a sole arbitrator or a panel of arbitrators;"party" means a party to an arbitration agreement and includes a person claiming through or under a party.
(2)An arbitration is domestic if the arbitration agreement provides expressly or by implication for arbitration in Kenya: and at the time when proceedings are commenced or the arbitration is entered into—
(a)where the arbitration is between individuals, the parties are nationals of Kenya or are habitually resident in Kenya;
(b)where the arbitration is between bodies corporate, the parties are incorporated in Kenya or their central management and control are exercised in Kenya;
(c)where the arbitration is between an individual and a body corporate—
(i)the party who is an individual is a national of Kenya or is habitually resident in Kenya; and
(ii)the party that is a body corporate is incorporated in Kenya or its central management and control are exercised in Kenya; or
(d)the place where a substantial part of the obligations of the commercial relationship is to be performed, or the place with which the subject- matter of the dispute is most closely connected, is Kenya.
(3)An arbitration is international if—
(a)the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different states;
(b)one of the following places is situated outside the state in which the parties have their places of business—
(i)the juridical seat of arbitration is determined by or pursuant to the arbitration agreement; or
(ii)any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject-matter of the dispute is most closely connected; or
(c)the parties have expressly agreed that the subject-matter of the arbitration agreement relates to more than one state.
(4)For the purpose of subsection (3)—
(a)if a party has more than one place of business, the place of business is that which has the closest relationship to the arbitration agreement; and
(b)if a party does not have a place of business, reference is to be made to his habitual residence.
(5)Where a provision of this Act, except section 29 leaves the parties free to determine a certain issue, such freedom includes the right of the parties to authorize a third party including an institution to make that determination.
(6)Where a provision of this Act refers to the fact that the parties have agreed or that they may agree or in any other way refer to an agreement of the parties, such agreement includes any arbitration rules referred to in that agreement.
(7)Where a provision of this Act, other than sections 26 and 33(2)(a), refers to a claim, it also applies to a counterclaim, and where it refers to a defence it also applies to a defence to such counterclaim.[Act No. 11 of 2009, s. 2.]
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Source: Kenya Law