INTRODUCTION
Arbitration is one of the Alternative Dispute Resolution mechanisms used in Kenya. This is in accordance with Article 159 of the Constitution of Kenya,2010 ,and the Arbitration Act,1994, Laws of Kenya. It has always been an effective method to resolve disputes outside the court precincts. I am going to discuss further the legal trends in relation to the law that has made it more attractive and appealing to the eye.
The law is very broad and Arbitration has proven to be a very effective way to resolve commercial disputes. This is known as investor-state Arbitration. In any commercial contract, an Arbitration clause is very essential. In consideration for investors who want to invest in any business.
ENERGY LAW ARBITRATION
Some of the recent energy projects include renewable energy sources, the relationship between state boundaries and energy resources, and localisation of energy trade.
Energy Arbitration Law in Africa has become a catchy trend in the past year. The International Court of Arbitration. In the year 2018, the ICC Court of Arbitration made sure that Arbitration creates awareness and strengthens its presence to grow Africa’s economic status.
The African Commission has been established for the purpose of raising awareness of dispute resolution services within Sub-Saharan countries. These efforts have borne fruits where countries have been able to resolve energy-related disputes through ICC Arbitration.
INVESTOR-STATE ARBITRATION
Investor-state Arbitration is a unique factor when it comes to bilateral treaties between states. African states signed 758 bilateral investment treaties(BTIs) as of December 2021. These treaties are usually binding documents to assist states to grow regional trade.
There has been notable success in East Africa as far as the enforceability of arbitral awards is concerned where Tanzanian courts in the Dowans case, enforced a US$65 million arbitral award against the Tanzania Electric Supply Company (TANESCO). This is a milestone and East Africa should be given credit for it. African states are now party to the New York Convention, ICSID Convention which is international ratified law.
ENERGY-RELATED DISPUTES
Some of the energy-related projects include:
- Joint venture Agreement disputes
- design and engineering-related issues in the construction of projects;
- Currency payment disputes
In the Kenyan Menengai project, a geothermal power project, faced challenges including delay in carrying out feasibility projects, failure of financial closures ,and meeting financiers on time. There is hope to get East Africa to the next level and increase renewable and sustainable projects but it will take some time.
CONCLUSION
There is a lot of significant change in East Africa on Energy Arbitration Law. Nonetheless, efforts need to be made to advance technological development and the creation of jobs for sustainability and growth.
