The High Court of Kenya has delivered a landmark decision in the case of Bruton Gold Trading LLC v Anne Atieno Amadi & Others, bringing much-needed clarity to the rights of foreign companies to bring legal action in Kenyan courts. The Court ruled that a foreign company does not need to be registered in Kenya to sue in Kenyan courts.As long as the company is properly incorporated in its home country, it is recognised as a legal entity and can seek justice in Kenya. This decision came after the defendants argued that Bruton Gold, a Dubai-based company, could not sue in Kenya because it was not registered locally.The Court dismissed this argument, stating that registration under section 974 of the Kenyan Companies Act is not a requirement for a foreign company to have the right to sue. This section requires foreign companies seeking to carry on business in Kenya to be registered in Kenya. This ruling marks a clear shift from an earlier decision in the case of Stichting Rabo Bank Foundation v Ava Chem Limited & Another, where the High Court had taken a stricter approach. In that case, the court ruled that a foreign company could not sue in Kenya unless it was registered locally, leading to the dismissal of the suit. This created uncertainty and concern among foreign investors and businesses, as it suggested that even companies not doing business in Kenya could be denied access to the courts.The Bruton Gold decision is significant for the business community. It reassures foreign companies that they can enforce their rights and pursue legal remedies in Kenya without necessarily having been registered locally, provided they are properly incorporated in their home country. The court emphasised that access to justice is a constitutional right and should not be blocked by technical registration requirements.While the decision holds that foreign companies can sue in Kenya if they are validly incorporated in their home country and local registration is not needed to bring a lawsuit, foreign companies should be aware that local registration may be required for other business activities. While this decision brings clarity, there are still differing views in the courts. The Court of Appeal is expected to provide a final word on the matter. For now, foreign businesses can be more confident about their ability to seek justice in Kenya, but should continue to monitor legal developments closely (ICE NAIROBI)

Fonte notizia: Business Daily