Arbitration could unlock billions into the economy

Tuesday December 19 2017

Arbitration saves both time and money for those involved and holds the potential to inject billions into the economy. FILE PHOTO | NMG

Arbitration saves both time and money for those involved and holds the potential to inject billions into the economy. FILE PHOTO | NMG 

By JAMES KARIUKI
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Chief Justice David Maraga’s aspiration to entrench mediation as a conflict resolution mechanism, has seen 108 civil suits concluded releasing property and cash worth Sh1.4 billion back to the economy.

The cases from the commercial and family divisions of the court were heard by mediators where parties directly engaged instead of the court-umpired system where those involved become bitter foes after the suit is concluded.

While it took an average of  66 days to hear the 68 marital suits worth Sh340 million and 40 commercial disputes valued at Sh1 billion, it takes courts a minimum of two years to complete a civil suit making it time consuming  and a costly avenue for parties involved.

Mr Maraga said he plans to use his tenure to entrench mediation as a legally recognised process that is cost-effective and a homegrown means to solve disputes where parties agree on a give-and-take arrangement against the justice corridors where those involved pay lawyers to ‘square’ out the matter.

“My blueprint, Sustaining Judiciary Transformation (SJT) emphasises adoption of CAMP as integral to the next phase of the transformation. Through mediation Sh1.4 billion earlier locked up in litigation has been freed.

“Mediation Settlement Week is one of many avenues the Judiciary will employ to publicise the mediation process and change the perception that litigation is the only effective means of resolving disputes,” he said.

A status report covering the project’s infant stages between July and October 2017 shows that 1,600 commercial and family disputes were screened with 542 suits valued at Sh17.4 billion referred for mediation.

Dispute resolution

Commercial rows account for Sh14.7 billion while the family division is handling suits with Sh2.3 billion at stake.

“The pilot phase has ended and CAMP is now a permanent dispute resolution mechanism, just like litigation. Over-reliance on litigation as the exclusive means of conflict resolution has, over time, led to a serious backlog of cases in our courts, hampering the effective fulfilment of the Judiciary’s mandate,” said Mr Maraga.

According to a report compiled on the sta