EMPOWERING SMES: THE ROLE OF KENYA'S SMALL CLAIMS COURT IN SUPPORTING SMALL AND MEDIUM-SIZED ENTERPRISES
EMPOWERING
SMES: THE ROLE OF KENYA'S SMALL CLAIMS COURT IN SUPPORTING SMALL AND
MEDIUM-SIZED ENTERPRISES
Introduction
The formation of the Small Claims Court in Kenya was a
game-changer in supporting the business community. The court encourages fast
recovery of money owed and ensures that business community members are granted fast,
efficient access to justice in solving commercial disputes.
The court handles recovery of claims not exceeding Kshs
1 million, furthermore, it forms part of the court structure as per the
Constitution of Kenya 2010 Article 169 (1), as a subordinate court supported by
the Small Claims Act 2016.
What are Small and Medium-sized
Enterprises (SMEs)?
Small and Medium-sized Enterprises (SMEs) are
businesses that range in size from a few employees to several hundred
employees.
SMEs are crucial for the economy because they create
jobs, drive innovation, and contribute to economic growth. They often provide
unique products and services that big corporations might not offer.
Currently, Kenya is facing harsh economic times, traders
and business owners are struggling to make profits from their businesses, small
entrepreneurs have time and again been unable to receive their payments for
services offered or persons failing to fulfill the terms of their contracts as
agreed which has resulted to huge losses to the business community.
The court provides significant relief to numerous
small and medium-sized entrepreneurs who previously couldn't afford costly
legal disputes to reclaim their hard-earned money. It aimed
at promptly resolving claims related to small and medium enterprises (MSMEs) to
free up funds for capital investment.
Do not give up on your business if you’re thinking of
shutting down your business due to unfulfilled services relating to contracts
for sale and supply of goods, or money held or received.
The court has fewer formalities and technicalities,
which settles civil and commercial disputes in a timely manner as stipulated
under Article 48 of the Constitution of Kenya which guarantees the right of
access to justice.
Commentary
For a business to thrive it requires all structures to
be active including the legal aspect of the business in order to recover claims
when disputes arise hence allowing the business to continue making profits and
not losses.
It is a fast, efficient, and affordable solution that
is only limited to 60 days which is a fast-track recovery of money owed. It
handles matters not exceeding Kshs 1 million which reduces the backlog of cases
for small commercial disputes.
Disclaimer
The information provided by Apollo Oduor &
Associates Advocates on this platform is for general informational purposes
only. All information on the site is provided in good faith. Feel free
to ask if you have any more questions or need further details; Law firm: Apollo
Oduor & Associates Advocates; Email: apollooduoradvocates@gmail.com; Mobile
| WhatsApp:(+254) 0732682015
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