Time quietly defeats claims. A debt six years and one day old may already be unrecoverable, however strong the documents, which is why limitation periods belong in every receivables review.
What are the limitation periods for common commercial claims?
The Limitation of Actions Act (Cap 22) sets the clock. Actions founded on contract or tort must generally be brought within six years of when the cause of action accrued. An action to recover land must be brought within twelve years. Other claims carry their own periods, insurance-related claims, for instance, are also subject to limitation, and policy terms may impose notification windows shorter than the statute, so each matter should be checked against the Act (kenyalaw.org).
When does time start running?
For an unpaid invoice, time usually runs from the date payment fell due; for breach of contract, from the date of the breach. The Act contains provisions extending time in limited circumstances, such as fraud or mistake, but those are exceptions to be identified by an advocate, not a plan. If in doubt, assume the shortest plausible period.
Can the clock be reset?
Yes. A written acknowledgment of the debt signed by the debtor, or a part payment, can restart limitation under the Act. This is why settlement correspondence should be drafted with care: a poorly worded letter can revive a time-barred claim, sometimes in your favour, sometimes against it. Where a debtor acknowledges part of a debt, the effect on the balance should be considered before the letter goes out.
What practical steps protect a claim?
- Diary limitation dates against every significant receivable and third-party obligation.
- Request written acknowledgments when negotiating long-running debts.
- Keep standard credit terms clear, so the accrual date is easy to identify.
- Review receivables against limitation dates at least twice a year.
Because most commercial claims begin as contract problems, our commercial contracts practice reviews terms with limitation in mind, and our real estate practice advises on the longer periods that apply to land.
For guidance on your specific situation, contact CS Advocates LLP, call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.