Covid-19 Care Package
In order to help Kenya’s small and medium enterprises, entrepreneurs (SMEs), and startups, we have created a monthly virtual conference platform dubbed “Startup law forum” where we interact with startups with an aim of answering their legal questions while discussing with them the latest insights, and resources to help them go through these difficult times.
We strive, to provide serious entrepreneurs with this special package on a regular basis with the necessary enthusiasm and care, as our own resources allow and as the global situation and response to COVID 19 develops.
You are not alone. We are here with you every step of the way as we all wait for this storm to ease.
Effects of COVID-19 to legal Practice
COVID-19 & Banking, Finance & securities
Government and regulators are heavily reliant on financial institutions to stabilize the economy. They have sought to introduce incentivization schemes to prevent the collapse of the economy. For example, as a measure of cushioning COVID-19 Pandemic the Central Bank of Kenya had rolled out the measure to;
- lower Central Bank Rate (CRB) to 7.25% from 8.25% meant to prompt commercial banks to lower the interest rate to their borrowers, availing the much needed and affordable credit to MSMEs across Kenya.
- lower Cash Reserve Ratio (CRR) to 4.25% from 5.25% meant to provide additional liquidity of Kshs. 35 billion to commercial banks to directly support borrower that are distresses as a result of the economic effects of COVID-19 pandemic.
COVID-19 & Competition & Consumer Protection Law
Despite COVID-19, Competition Law continue to apply. In fact, where there have been suspected breaches, regulators issue warning and have kept on conducting investigations. At the wake of COVID-19, the Competition Authority had issued a Cautionary Notice against Manufacturers and Retailers against collusive increase of prices and/or hoarding with the intention of Increasing prices of various essential commodities. In fact, the Notice urged members of the Public to be vigilant and raise complaints or report contravening entities against the directives of the Authority.
For instance, on the 16th March 2020, CAK a remedial order was issued against some local supermarkets, retailers after it was established that some were engaged had engaged in unconscionable conduct contrary to provisions of Section 56 of the Competition Act of Kenya.
Additionally, CAK had established that some manufacturers had entered into exclusive agreements that facilitated allocation of distributorship territories, brand exclusively, quantities supplied. The exclusive agreements deterred manufacturers of competing bands (especially those dealing essential commodities) from accessing the same distributors to deliver their products to retail outlets contrary to section 21(1) of the Competition Act No. 12 of 2010.
COVID-19 & Corporate Law
Globally, and particularly in Kenya, many businesses have reduced or shut down and as a result most Mergers and Acquisitions (M&A) activities have been postponed or even cancelled.
COVID-19 & Employment Law
Many employers have considered declaring some position redundant for lack of affordability to continue remunerating employees or any other business reasons. We advise client on how to follow laid down procedure through redundancy and such like processes to avoid litigation. The president in his address of March 25th 2021 incentivized the working individual in in a way that could increase their disposable income through:
COVID-19 & Dispute Resolution
There has been increased disputes regarding frustration of contracts among parties in commercial transactions. Parties have often failed to fulfill part of their bargain due to COVID-19 situation. Trials of these cases have also moved online and attendance of court or ADR forums is now virtual.
