Signed a Contract and Got Burnt?? This New Kenyan Law Will Stop Unfair Terms and Protect You

Have you ever signed a contract without reading the fine print?

Maybe it was for a gym membership, a phone purchase, or even a construction project. Somewhere in that long document, there was probably a clause saying something like:

"We are not responsible for any loss, damage, or injury."

Most of us see it, sigh, and sign anyway.

But here is the good news. That kind of clause may soon not protect businesses the way it used to.

Welcome to the Law of Contract (Amendment) Bill, 2025.

What Is Changing

In simple terms, this new law is trying to make contracts fairer, especially for ordinary people.

For a long time, businesses could include harsh terms in contracts because the law allowed it. If you signed, you were bound, even if the terms were one sided.

This Bill is saying not anymore.

You Can’t Sign Away Everything

One of the biggest changes is this.

A business cannot escape responsibility for serious issues like death caused by negligence. And even for other types of damage:

• They can only limit their responsibility if the term is fair and reasonable.

  
  

So that blanket "we are not liable" clause might not hold up anymore.

Fairness Now Matters

The law introduces something called a reasonableness test. That simply means:

• Was the term fair

• Would a normal person consider it reasonable

• Did both parties have a real choice

If the answer is no, the clause may be invalid, even if you signed the contract.

Stronger Protection for Consumers

If you are buying goods or services as an ordinary person, the law gives you extra protection.

A supplier cannot:

• Provide something completely different from what was promised

• Refuse to perform their obligation

• Hide behind unfair contract terms

In other words, they must deliver what they promised.

Faulty Products They Cannot Just Walk Away

If a product is defective and causes damage:

• The seller or manufacturer cannot simply rely on a contract clause to avoid responsibility

• Especially if the damage was due to negligence

So if something goes wrong, you are not left helpless.

What This Means for You

This law is a big shift. It means:

• You are no longer completely at the mercy of fine print

• Contracts must be fair, not just signed

• Businesses must act more responsibly

But Still Read Before You Sign

Even with these protections:

1. Not every clause is automatically invalid

2. Some limitations are still allowed if they are reasonable

So yes, still read before you sign.

But now, the law is finally saying what many people have always felt.

Just because it is written in a contract does not make it fair.

Written by Winnie Tsuma

Advocate of the High Court

Managing Partner, Tsuma and Associates Advocates.