This archive report was first published on 25 September 2019.
As Kenya continues to experience significant growth in online businesses, it is inevitable that various disputes arise from these transactions. However, these disputes often leave both parties without recourse for settling the conflicts, as the transactions are often too small to be worth litigating or relying on other Alternative Dispute Resolution (ADR) mechanisms.
According to a report by UNCTAD, e-commerce accounts for an estimated six percent of all purchases in Kenya, and this number is expected to rise. This makes it apparent that there is an urgent need to provide a viable means of resolving the disputes arising from such transactions.
Online Dispute Resolution (ODR) is a product of the information age and ADR, which involves leveraging the internet to connect people as a means of resolving disputes. ODR has several advantages over court litigation, including a much faster resolution timeline, significantly lesser costs, and it is aimed at maintaining the relationship between the two parties instead of escalating their issues.
Kenya has been a global leader in adopting groundbreaking innovations and disruptions to traditional industries, as evidenced by M-Pesa. Therefore, it is high time that the growing online businesses adopted an easy and convenient method of resolving their disputes.
Several pioneering platforms are seeking to offer ODR services, such as iResolve in Tanzania and UlizaWakili in Kenya. With the usual trend of technology leading and law following closely after, it is to be expected that the law to regulate the ODR will be legislated soon.
Considering the Kenyan penchant for adopting innovative and disruptive technology, ODR might just be the next frontier in dispute resolution in Kenya.
— Muiruri Wanyoike, founding team member and CIO at UlizaWakili
