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The Legal Bulletin is a PwC Kenya Legal Business Solutions publication offering insights on legal, regulatory, and case law updates.
In this bulletin:
Is your force majeure clause ready
Supply chain interruptions, public demonstrations, sanctions, economic volatility and cyber incidents continue to challenge businesses across sectors. As unexpected events increasingly affect contractual performance, organisations should assess whether their contracts provide an effective framework for managing these risks.
In our latest Legal Business Solutions bulletin, we examine the growing importance of force majeure clauses and why they should not be treated as standard contractual boilerplate. The publication explains how force majeure operates under Kenyan law and highlights the important distinctions between force majeure, frustration and hardship.
The bulletin also outlines the key elements of an effective force majeure clause, including qualifying events, the degree of impact required, causation requirements, mitigation obligations, and the consequences that follow when relief is successfully claimed. In addition, it explores the role of alternative performance arrangements, and the lessons businesses can draw from judicial decisions.
As businesses navigate an increasingly uncertain operating environment, carefully drafted force majeure provisions can play a critical role in allocating risk and preserving commercial relationships. Organisations should ensure their force majeure provisions are tailored to their specific commercial realities and foreseeable risks.
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Caroline Wanja
Associate Director | Legal Business Solutions, PwC Kenya
Tel: +254 (20) 2855000
