Overview
Kenya’s economy continued to grow through 2010 and lawyers reported a busy year, particularly in the energy sector. Prime Minister Raila Odinga is predicting economic growth of 7% in 2011 and 10% in 2012 which, as Kenya has stabilised considerably since the turmoil following the 2007 elections, may be achievable. There are certainly hopes that the more stable power-sharing deal between Mr Odinga and President Mwai Mbeki which maintains the government of national unity will allow Kenya to exploit its position as the economic hub of East Africa more effectively than has been the case for several years.
Kenya has the highest mobile phone penetration in the region, at 80% of the over-15s, a world leading money transfer system, the largest airport in East Africa, alongside persistently high levels of corruption and the largest urban slum on the continent. Lawyers are cautiously optimistic and in particular have hopes that the new constitution, which received approval by referendum in August 2010 will, as well as providing a good platform for the economy and social stability, speed up the passage of law cases, and encourage more alternative dispute resolution.
Most law firm complements have remained fairly stable during the last year, subject to some modest recruitment in corporate departments and a few promotions to partner. Iseme, Kamau & Maema Advocates joined the DLA Piper Group in January 2010.
The Kenyan commercial legal market is comparatively small as are the law firms. Only those firms in The Legal 500’s top two tiers have the skills and capacity to handle high-value, complex, or cross-border, commercial instructions. London firms frequently lead in high-value transactions and arbitrations; Linklaters LLP’s Andrew Jones, and Stephenson Harwood’s Kamal Shah and his team have extensive experience in the region. Most Kenyan firms belong to regional networks and clients have commented on the importance of these links. Nairobi firms also work with firms in offshore financial centres to assist in channelling Asian inward investment to the region. Mauritius has been a steady source of business and Anjarwalla & Khanna opened a Dubai office in January 2011. For domestic instructions, privatisation, and particularly litigation, the market is rather deeper, and smaller firms in the lower tiers can be recommended for mid-range work.