Small Claims Courts in Kenya and How They Work

Imagine you've lent money to a friend, but they won't pay you back. Or your landlord won't return your deposit when you move out. Or maybe an employee has stolen money from your business. It's frustrating, and you want to do something about it.

Most people or businesses find themselves in this situation, unable to recover what's rightfully theirs because going to court can be expensive and time-consuming. Lawyers can be a hassle, and the whole process seems daunting.

That's where Small Claims Courts come in. They're designed to be quick and straightforward, making it easier for everyday people to get justice without the hassle and expense of traditional court battles.

Small Claims Courts help people and small businesses get justice without breaking the bank or waiting for the slow wheels of justice to turn. But how do Small Claims Courts work, and what do you need to know about them?

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What is a Small Claims Court

According to the official Judiciary Website, A Small Claims Court (SCC) is a specialised commercial court created by statute with specific duties and powers designed to provide a judicial determination involving small amounts of money.

The SCC is established by the Small Claims Act 2016. It is a subordinate court in the structure of the court system in Kenya under Article 169 (1) of the Constitution. To give effect to this Act, on 23rd August 2019, the Chief Justice gazetted the Small Claims Court Rules, 2019. Subsequently, after making slight amendments, Parliament amended the Act through the Small Claims Court (Amendment) Act, 2020.

SCC were operationalised on December 10th  2021, when Chief Justice Martha Koome established Small Claims Courts in Eldoret, Kajiado, Kakamega, Kisumu, Machakos, Meru, Mombasa, Naivasha, Nakuru, Nyeri. 

Small Claims Courts are judicial bodies created to efficiently resolve minor financial disputes using cost-effective methods, all while ensuring fairness and justice. They handle cases involving small sums of money, not exceeding 1 million shillings.

The statutory lead time for all filed cases, as per Section 34 of the Act, is sixty days (60). The court has to hear and determine a matter within 60 days (2 months). To ensure cost-effectiveness, a claimant shall then pay the filing fees ranging from Ksh200 to Ksh1000/- based on the claim amount.

Purpose and Functions of SCC

Access to justice has been one of our country's challenges and one of the main reasons for establishing the Small Claims Court. The court's primary objective is to ensure the right to access justice as outlined in Article 48 of the Constitution of Kenya, 2010, by: 

1. Prompt resolution of all court proceedings: The statutory lead time for all filed cases, as per Section 34 of the Act, is sixty days (60). The court has to hear and determine a matter within 60 days (2 months) of filing the claim. 
2. Utilising cost-effective methods and reasonable court fees: To ensure cost-effectiveness, a claimant pays filing fees, ranging from Ksh200 to Ksh1000/- based on the claim amount.
3. Ensuring equal access to judicial services for all: The court facilitates the use by parties of indigenous languages, Braille, Kenyan sign language, and other communication formats and technologies accessible to persons with disabilities.
4. Decreasing the backlog of cases: Due to the volumes, the speedy dispensation of justice, and the facilitation of citizen's access to justice by opening the courts to the public directly, the judiciary can reduce case backlogs. 
5. Enhance the Ease of Doing Business: The establishment of the court provides and enables an environment for investment, competitiveness, and accelerated private sector growth through the reduction of cost and time needed to resolve commercial disputes.

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Jurisdiction of Small Claims Courts 

Section 12 (1) of the Small Claims Court Act of 2016 outlines that the court is authorised to handle civil claims valued at up to one million Kenyan shillings (Ksh1,000,000) relating to: 

• Contracts for the sale and provision of goods or services,
• Contracts pertaining to money held or received,
• Liability in tort for loss or damage to property, or for the recovery or delivery of movable property,
• Compensation for personal injuries, and;
• Set off and counterclaim under any contract.

Once a claim is lodged, the Small Claims Court has sole jurisdiction over the matter. Legal proceedings cannot be initiated in any other court unless certain conditions are met. 

The jurisdiction of the Court is also limited, and the SSC cannot hear claims where the cause of action is founded upon defamation, slander, libel, malicious prosecution, a dispute over possession of land or a title, or matters concerning employment and labour relations.

Procedure Before the Court 

The Small Claims Court is overseen by an Adjudicator who is a qualified advocate of the High Court of Kenya with a minimum of three years' experience. 

The Court has the authority to manage its own proceedings when dealing with claims brought before it. It ensures that these proceedings adhere to the principles of natural justice.

To initiate a case in the Small Claims Court, an individual or corporation must complete a claim form and pay a filing fee. This form includes the names and addresses of both the claimant and defendant and a brief summary of the dispute.

Once the Court receives a response, it schedules a hearing date. Importantly, legal representation is not mandatory, and hearings are typically conducted in an informal manner where the Court is not bound wholly by the Rules of Evidence. 

During the hearing, both parties present their arguments and evidence. The judge then makes a decision based on the evidence presented.

In some cases, the Court may suggest alternative dispute resolution methods with the parties' consent. Any agreements reached through such methods are binding and recorded as court orders.

If the respondent fails to respond to the claim within the specified time frame and the Court is satisfied that they have been properly served, the Court may issue a judgment in favour of the claimant and grant the requested remedy.

The respondent must satisfy the claim directly to the claimant within 15 days of being served with the claim, and the claimant must inform the Court of this satisfaction.

Upon the hearing of the claim, the Court shall deliver a judgment within reasonable timelines and make one or more of the following orders:

• Order to pay money either in a lump sum or by instalments;
• An order for the restitution of any movable property;
• An order for the recovery of any sum in relation to the performance of a contract;
• An order dismissing the claim to which the proceedings relate;
• Or any such consequential or ancillary orders as may be necessary, including any stipulations or conditions for the enforcement of its orders or directions.

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WRAPPING UP 

If you've been taken to Small Claims Court, you have options after the trial. You can deny the claims against you, assert a set-off, or file a counterclaim. Additionally, you can request to involve a third party or ask for the case to be moved to another court.

Once the court issues an order for payment, it must be enforced as per the law. If someone seeks enforcement through a method different from the one originally ordered, they must inform the party being enforced against.

If you're unhappy with the court's decision or order, you can appeal to the High Court on legal grounds. To start the appeal process, you need to submit a detailed memorandum outlining your legal objections. The High Court then reviews the appeal, checking for any procedural errors or unjust processes from the Small Claims Court. The High Court is the final stop for appeals.