Debt collection in Kenya is governed by several laws including the Consumer Protection Act, the Data Protection Act, and general contract law principles. Understanding these frameworks protects both creditors and debtors.
Creditors have the right to pursue legitimate debts through demand letters, negotiation, and court proceedings. However, harassment, threats, and disclosure of debt information to third parties without consent are prohibited.
A professional collection agency must operate within these boundaries. At Faways Solutions, every recovery action is documented, compliant, and approved by the client before execution.
For debts that require legal action, the process typically begins with a demand letter, followed by filing a claim in the appropriate court. Small claims courts handle disputes under certain thresholds, while larger amounts go to the High Court.
The Limitation of Actions Act sets time limits on how long a creditor can pursue a debt through courts — generally six years for contract debts. This is why acting promptly on overdue accounts is critical.
If you are unsure about the legal status of your debts, our team can review your portfolio and advise on the best recovery approach within the law.