This is a legal alert for International businesses and legal professionals.
The High Court has consistently pronounced itself on a strict requirement under the Companies Act 2015: an unregistered foreign company has no legal capacity to institute or maintain litigation in Kenya.
This isn’t just theoretical. Recent rulings, including Stichting Rabo Bank Foundation v Ava Chem Limited, Turn Key International Trade Limited v Sunmatt Limited, have seen cases dismissed at the preliminary stage because the foreign plaintiff was not registered in Kenya. A preliminary objection is enough to end your dream of having audience in our courts.
Key Takeaways:
Mandatory Registration: Before engaging in business or entering contracts, foreign entities must register under Part XXXVII of the Companies Act 2015.
A Strong Defense: No need for a strong defense, a simple preliminary objection works.
It is a non-negotiable need for compliance to secure legal standing and protect commercial interests.
However, Please note one of these decisions is currently on appeal, which may or may not alter jurisprudence over the same.
