Freqenly Asked Questions

Contracts

Yes, oral contracts are valid contracts. In fact, the Law of Contract Act of Kenya provides that the contracts that need to be in writing are those related to the disposition of land or an interest in land. On the other hand, when it comes to enforcing certain contracts in court, you should adhere to the requirements on writing as stipulated in the specific statutory law..

There should be an offer, mutual acceptance and exchange of consideration for a contract to be valid. Further, while oral contracts are valid, make sure that the subject matter of the contract does not fall under the statutory types of contracts that need to be in writing, such as the disposition of an interest in land..

  1. The Law of Contract Act of Kenya;
  2. Legal Precedents under Case Law;
  3. Contracts in certain sectors are governed by the particular statute controlling that sector. For instance, an employment contract is governed by the rules under the Employment Act of 2007.

Variation of a contract should be by mutual agreement to be valid. A major variation of a contract without mutual agreement renders the contract voidable at the option of the counterparty whose agreement was not sought. A variation without mutual agreement may be ratified by the said counterparty.

Matrimonial Property in Kenya

Not necessarily. Kenyan Law provides that separately owned assets remain the assets of the sole owner subject to commingling that may cause your spouse to acquire an interest in your separate property. Thus your spouse may acquire an interest in previously separately owned property and in such a case, your spouse may not necessarily be entitled to half, but to a percentage equivalent to what your spouse contributed to its improvement, which may or may not be 50% of its value. On the other hand, your house may become the matrimonial home after marriage. In such instances the rules under the Matrimonial Property Act come into play.

Separately owned property remains so unless your spouse improves it in which case they may acquire an interest in said separate property. Spouses can enter a prenuptial agreement to delineate separately owned property from matrimonial property. Thus during a matrimonial property cause, you as the owner of what you deem your separate property often fight to prove that no improvements or commingling has happened to grant your spouse an interest in said separate property.

The Matrimonial Property Act preserves the legal principle of separation of property acquired before or after marriage subject to rules on commingling or improvement by your spouse. Thus simply put, if you keep your separately owned property as truly separate from jointly owned property, then you retain your interest 100% in said assets.

Yes, it is possible for your spouse to acquire an interest in your business entitling them to a share.