{"id":8809,"date":"2026-10-02T13:51:19","date_gmt":"2026-10-02T13:51:19","guid":{"rendered":"https:\/\/okenyoomwansaadvocates.co.ke\/?p=8809"},"modified":"2026-10-02T13:51:38","modified_gmt":"2026-10-02T13:51:38","slug":"international-sales-contracts-kenyan-exporters","status":"publish","type":"post","link":"https:\/\/okenyoomwansaadvocates.co.ke\/index.php\/2026\/10\/02\/international-sales-contracts-kenyan-exporters\/","title":{"rendered":"How Kenyan Exporters Should Draft International Sales Contracts"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-1024x683.png\" alt=\"Kenyan Export Contracts Trade Guide\" class=\"wp-image-8810\" srcset=\"https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-1024x683.png 1024w, https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-300x200.png 300w, https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-768x512.png 768w, https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-600x400.png 600w, https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide-1500x1000.png 1500w, https:\/\/okenyoomwansaadvocates.co.ke\/wp-content\/uploads\/2026\/10\/Kenyan-Export-Contracts-Trade-Guide.png 1536w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Legal Practice:<\/strong> Corporate &amp; Commercial Law | International Trade | Commercial Contracts<br><strong>Jurisdiction:<\/strong> Kenya<br><strong>Last reviewed:<\/strong> 18 September 2026<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Legal information notice:<\/strong> This article provides general information for Kenyan exporters. The legal requirements for a particular export can depend on the product, destination country, transaction structure, applicable trade agreement, governing law, regulatory requirements and dispute-resolution mechanism. A transaction-specific legal review is advisable before signing a significant international sales contract.<\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">How Should a Kenyan Exporter Draft an International Sales Contract?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter should draft an international sales contract so that it clearly answers <strong>what is being sold, who is responsible for each stage of the transaction, when risk passes, how payment is made, which documents must be provided, which law governs the agreement and how disputes will be resolved.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A strong export sales contract should normally address:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Identity of the seller and buyer.<\/li>\n\n\n\n<li>Description and specifications of the goods.<\/li>\n\n\n\n<li>Quantity and tolerances.<\/li>\n\n\n\n<li>Price and currency.<\/li>\n\n\n\n<li>Incoterms\u00ae rule and named place.<\/li>\n\n\n\n<li>Delivery date and shipment arrangements.<\/li>\n\n\n\n<li>Transfer of risk and, where relevant, title.<\/li>\n\n\n\n<li>Inspection and acceptance.<\/li>\n\n\n\n<li>Packaging and labelling.<\/li>\n\n\n\n<li>Export and import documentation.<\/li>\n\n\n\n<li>Customs responsibilities.<\/li>\n\n\n\n<li>Payment mechanism and payment security.<\/li>\n\n\n\n<li>Taxes, duties and charges.<\/li>\n\n\n\n<li>Warranties and quality standards.<\/li>\n\n\n\n<li>Rejection, claims and remedies.<\/li>\n\n\n\n<li>Insurance.<\/li>\n\n\n\n<li>Force majeure.<\/li>\n\n\n\n<li>Governing law.<\/li>\n\n\n\n<li>Dispute resolution.<\/li>\n\n\n\n<li>Sanctions, compliance and applicable regulations.<\/li>\n\n\n\n<li>Confidentiality and intellectual property where relevant.<\/li>\n\n\n\n<li>Electronic communications and signatures.<\/li>\n\n\n\n<li>Data protection where personal data is processed.<\/li>\n\n\n\n<li>Termination and consequences of termination.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The important principle is simple:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>An international sales contract should allocate commercial risk deliberately rather than leaving important questions to assumptions, trade customs or email conversations.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">1. Why International Sales Contracts Require More Detail<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A domestic sale may involve a seller and buyer operating in the same legal and commercial environment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An export transaction can involve:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Kenyan exporter \u2192 foreign buyer \u2192 freight forwarder \u2192 carrier \u2192 customs authorities \u2192 insurer \u2192 bank \u2192 destination customs \u2192 warehouse\/distributor.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Each participant can introduce a different risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the goods may be damaged during transportation;<\/li>\n\n\n\n<li>the buyer may delay payment;<\/li>\n\n\n\n<li>customs may reject documentation;<\/li>\n\n\n\n<li>the destination country may require a particular certificate;<\/li>\n\n\n\n<li>the buyer may claim that the goods do not meet specifications;<\/li>\n\n\n\n<li>currency movements may affect the transaction;<\/li>\n\n\n\n<li>a shipment may be delayed;<\/li>\n\n\n\n<li>a new regulatory restriction may affect export or import;<\/li>\n\n\n\n<li>or the parties may disagree about which country&#8217;s law applies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should allocate these risks before the shipment leaves Kenya.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">2. Start With the Parties \u2014 and Verify Them<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should identify the parties precisely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For the Kenyan exporter, include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>full registered company name;<\/li>\n\n\n\n<li>registration details;<\/li>\n\n\n\n<li>registered address;<\/li>\n\n\n\n<li>trading address where different;<\/li>\n\n\n\n<li>KRA PIN where commercially appropriate;<\/li>\n\n\n\n<li>authorised representative;<\/li>\n\n\n\n<li>email address for contractual notices; and<\/li>\n\n\n\n<li>banking details where appropriate.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For the foreign buyer, obtain equivalent information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do not rely solely on a trading name.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A company should establish:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Who is buying? \u2192 Where is it incorporated? \u2192 Who represents it? \u2192 Who has authority to sign? \u2192 Where is it located?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This becomes particularly important where the buyer operates through:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a subsidiary;<\/li>\n\n\n\n<li>distributor;<\/li>\n\n\n\n<li>purchasing agent;<\/li>\n\n\n\n<li>branch;<\/li>\n\n\n\n<li>representative office; or<\/li>\n\n\n\n<li>intermediary.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Verify signing authority<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The person signing the agreement should have authority to bind the contracting company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The electronic execution of a document does not, by itself, resolve the separate question of corporate authority.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">3. Define Exactly What Is Being Sold<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most common sources of disputes in international sales is an unclear description of the goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should identify the goods with enough precision to allow the parties, logistics providers and customs authorities to understand exactly what is being sold.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the product, include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>product name;<\/li>\n\n\n\n<li>model or product code;<\/li>\n\n\n\n<li>grade;<\/li>\n\n\n\n<li>size;<\/li>\n\n\n\n<li>weight;<\/li>\n\n\n\n<li>quantity;<\/li>\n\n\n\n<li>quality;<\/li>\n\n\n\n<li>technical specifications;<\/li>\n\n\n\n<li>composition;<\/li>\n\n\n\n<li>packaging;<\/li>\n\n\n\n<li>country of origin;<\/li>\n\n\n\n<li>shelf life;<\/li>\n\n\n\n<li>applicable standards;<\/li>\n\n\n\n<li>inspection requirements;<\/li>\n\n\n\n<li>tolerances; and<\/li>\n\n\n\n<li>relevant certificates.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For agricultural exports, additional requirements may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>variety;<\/li>\n\n\n\n<li>maturity;<\/li>\n\n\n\n<li>grade;<\/li>\n\n\n\n<li>size;<\/li>\n\n\n\n<li>moisture;<\/li>\n\n\n\n<li>residue requirements;<\/li>\n\n\n\n<li>packaging;<\/li>\n\n\n\n<li>traceability;<\/li>\n\n\n\n<li>phytosanitary requirements; and<\/li>\n\n\n\n<li>destination-market standards.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">KEPHIS states that phytosanitary certification for plant and plant products is intended to demonstrate compliance with the importing country&#8217;s phytosanitary requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For regulated horticultural exports, AFA requirements may also apply depending on the crop and transaction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">4. Use a Clear Product Schedule<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">For recurring exports, consider attaching a product schedule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Specification<\/th><\/tr><\/thead><tbody><tr><td>Product<\/td><td>Kenyan Hass Avocados<\/td><\/tr><tr><td>Grade<\/td><td>As agreed<\/td><\/tr><tr><td>Size<\/td><td>As agreed<\/td><\/tr><tr><td>Quantity<\/td><td>20 metric tonnes<\/td><\/tr><tr><td>Packaging<\/td><td>Export-grade cartons<\/td><\/tr><tr><td>Origin<\/td><td>Kenya<\/td><\/tr><tr><td>Destination<\/td><td>Rotterdam, Netherlands<\/td><\/tr><tr><td>Quality standard<\/td><td>Contract specification<\/td><\/tr><tr><td>Inspection<\/td><td>Independent inspection before shipment<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The exact commercial terms should be determined by the transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The principle is that the contract should make it possible to answer:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>What exactly must the exporter deliver?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">5. Price and Currency Must Be Unambiguous<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International contracts should specify:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>unit price;<\/li>\n\n\n\n<li>total contract value;<\/li>\n\n\n\n<li>currency;<\/li>\n\n\n\n<li>quantity on which the price is calculated;<\/li>\n\n\n\n<li>whether the price includes freight;<\/li>\n\n\n\n<li>whether insurance is included;<\/li>\n\n\n\n<li>applicable taxes;<\/li>\n\n\n\n<li>duties;<\/li>\n\n\n\n<li>bank charges;<\/li>\n\n\n\n<li>commissions;<\/li>\n\n\n\n<li>discounts; and<\/li>\n\n\n\n<li>adjustment mechanisms where applicable.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>USD 4,500 per metric tonne, CIP Rotterdam, Incoterms\u00ae 2020.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">That short statement carries considerably more meaning when the relevant Incoterms\u00ae rule is properly incorporated into the contract.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">6. Choose the Correct Incoterms\u00ae Rule<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Incoterms\u00ae rules are among the most important tools for drafting international sales contracts.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The International Chamber of Commerce currently identifies <strong>Incoterms\u00ae 2020<\/strong> as the latest edition and describes the rules as standards that clarify the tasks, costs and risks involved in delivering goods. There are 11 Incoterms\u00ae 2020 rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EXW \u2014 Ex Works<\/li>\n\n\n\n<li>FCA \u2014 Free Carrier<\/li>\n\n\n\n<li>CPT \u2014 Carriage Paid To<\/li>\n\n\n\n<li>CIP \u2014 Carriage and Insurance Paid To<\/li>\n\n\n\n<li>DAP \u2014 Delivered at Place<\/li>\n\n\n\n<li>DPU \u2014 Delivered at Place Unloaded<\/li>\n\n\n\n<li>DDP \u2014 Delivered Duty Paid<\/li>\n\n\n\n<li>FAS \u2014 Free Alongside Ship<\/li>\n\n\n\n<li>FOB \u2014 Free On Board<\/li>\n\n\n\n<li>CFR \u2014 Cost and Freight<\/li>\n\n\n\n<li>CIF \u2014 Cost Insurance and Freight<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Do not simply write &#8220;FOB&#8221;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A contract should state the precise formulation, for example:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>FOB Mombasa Port, Kenya \u2014 Incoterms\u00ae 2020<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The named place matters.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">7. Incoterms\u00ae Do Not Replace the Sales Contract<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">This is an important drafting point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Incoterms\u00ae rules allocate specific responsibilities relating to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>delivery;<\/li>\n\n\n\n<li>risk;<\/li>\n\n\n\n<li>transport;<\/li>\n\n\n\n<li>insurance under relevant rules;<\/li>\n\n\n\n<li>export\/import formalities; and<\/li>\n\n\n\n<li>certain costs.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">They do <strong>not<\/strong> replace the entire sales agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They do not, by themselves, determine every issue concerning:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ownership;<\/li>\n\n\n\n<li>payment;<\/li>\n\n\n\n<li>warranties;<\/li>\n\n\n\n<li>remedies;<\/li>\n\n\n\n<li>governing law;<\/li>\n\n\n\n<li>dispute resolution;<\/li>\n\n\n\n<li>intellectual property;<\/li>\n\n\n\n<li>confidentiality;<\/li>\n\n\n\n<li>contractual liability; or<\/li>\n\n\n\n<li>termination.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">ICC itself describes Incoterms\u00ae rules as terms for the delivery of goods rather than a complete set of contractual provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Incoterms\u00ae should be incorporated into the contract, not used as a substitute for the contract.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">8. Clearly Allocate Risk During Transportation<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should answer:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Who bears the risk if the goods are damaged during transport?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">This depends partly on the selected Incoterms\u00ae rule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, under CIP, ICC explains that risk transfers when the seller delivers the goods to the carrier, even though the seller contracts for carriage to the named destination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means the exporter should not assume:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;I am paying the freight, therefore I carry the risk until the goods reach the buyer.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Those are different concepts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A carefully drafted contract should distinguish:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Cost \u2192 risk \u2192 insurance \u2192 title.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">9. Address Transfer of Title Separately<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Risk and ownership are not necessarily the same thing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should specify when ownership or title passes if this matters to the transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kenya&#8217;s Sale of Goods Act provides that, for specific or ascertained goods, property passes at the time the parties intend it to pass, with the terms of the contract, conduct and circumstances being relevant to determining that intention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, exporters should avoid assuming that an Incoterms\u00ae rule automatically answers the separate question of title.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A contract can expressly state:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;Title to the goods shall pass to the Buyer upon [specified event], subject to payment of the purchase price.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The wording should be adapted to the transaction and applicable law.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">10. Specify Delivery Dates and Shipment Windows<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should distinguish between:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>contractual delivery date;<\/li>\n\n\n\n<li>shipment date;<\/li>\n\n\n\n<li>estimated arrival;<\/li>\n\n\n\n<li>delivery window;<\/li>\n\n\n\n<li>port of loading;<\/li>\n\n\n\n<li>port of discharge;<\/li>\n\n\n\n<li>final destination; and<\/li>\n\n\n\n<li>permissible delay.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For recurring exports, consider whether delivery should be structured as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>one shipment;<\/li>\n\n\n\n<li>several shipments;<\/li>\n\n\n\n<li>monthly quantities;<\/li>\n\n\n\n<li>quarterly quantities; or<\/li>\n\n\n\n<li>shipment against purchase orders.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should also state what happens when shipment is delayed.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">11. Address Partial Shipments<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Can the exporter make a partial shipment?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Can the buyer reject one shipment without terminating the entire contract?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These questions matter particularly where goods are exported in batches.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should state:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>whether partial shipment is permitted;<\/li>\n\n\n\n<li>whether transshipment is permitted;<\/li>\n\n\n\n<li>whether delivery by instalments is permitted;<\/li>\n\n\n\n<li>how each shipment is invoiced;<\/li>\n\n\n\n<li>whether a defective shipment affects future shipments; and<\/li>\n\n\n\n<li>when a delay becomes a material breach.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">12. Payment Terms Are a Core Risk-Control Mechanism<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The payment clause should be one of the most carefully drafted sections.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Possible structures include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advance payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The buyer pays before shipment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Letter of credit<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A bank-based payment mechanism can provide additional payment structure where the transaction justifies it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documentary collection<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Banks handle specified commercial documents under the agreed collection arrangement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Open account<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The exporter ships before receiving payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Milestone payments<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Payment occurs against agreed stages or documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mixed structure<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">30% advance + 70% against specified shipping documents.<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate structure depends on the buyer, country, transaction value and risk profile.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">13. Protect Against Currency Risk<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter may incur costs in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Kenya shillings;<\/li>\n\n\n\n<li>US dollars;<\/li>\n\n\n\n<li>euros;<\/li>\n\n\n\n<li>pounds;<\/li>\n\n\n\n<li>or another currency.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should therefore state the payment currency.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For longer-term arrangements, consider addressing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>exchange-rate adjustments;<\/li>\n\n\n\n<li>currency conversion;<\/li>\n\n\n\n<li>payment-date exchange rate;<\/li>\n\n\n\n<li>bank charges;<\/li>\n\n\n\n<li>withholding taxes where applicable; and<\/li>\n\n\n\n<li>consequences of currency restrictions.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Do not leave currency assumptions to invoices.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">14. Define the Required Shipping Documents<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should identify exactly which documents the exporter must provide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the transaction, these may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>commercial invoice;<\/li>\n\n\n\n<li>packing list;<\/li>\n\n\n\n<li>certificate of origin;<\/li>\n\n\n\n<li>export declaration;<\/li>\n\n\n\n<li>bill of lading;<\/li>\n\n\n\n<li>airway bill;<\/li>\n\n\n\n<li>insurance certificate;<\/li>\n\n\n\n<li>inspection certificate;<\/li>\n\n\n\n<li>phytosanitary certificate;<\/li>\n\n\n\n<li>health certificate;<\/li>\n\n\n\n<li>quality certificate;<\/li>\n\n\n\n<li>certificate of conformity;<\/li>\n\n\n\n<li>permits;<\/li>\n\n\n\n<li>licences; and<\/li>\n\n\n\n<li>other destination-specific documentation.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">KRA states that export clearance documentation can include a commercial invoice, certificate of origin, permits or licences for restricted goods, PIN documentation, purchase orders\/contracts and packing lists.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The precise documents depend on the goods and destination.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">15. Make Documentation a Contractual Obligation<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A strong contract should not merely say:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;The seller shall provide all necessary documents.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">That can create disputes about what &#8220;necessary&#8221; means.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, use a schedule identifying:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Document<\/th><th>Responsible party<\/th><th>Timing<\/th><\/tr><\/thead><tbody><tr><td>Commercial invoice<\/td><td>Exporter<\/td><td>Before shipment<\/td><\/tr><tr><td>Packing list<\/td><td>Exporter<\/td><td>Before shipment<\/td><\/tr><tr><td>Certificate of origin<\/td><td>Agreed party<\/td><td>Before\/with shipment<\/td><\/tr><tr><td>Phytosanitary certificate<\/td><td>Exporter where applicable<\/td><td>Shipment<\/td><\/tr><tr><td>Bill of lading<\/td><td>Carrier\/exporter process<\/td><td>Shipment<\/td><\/tr><tr><td>Insurance certificate<\/td><td>Party responsible under Incoterms\u00ae<\/td><td>Shipment<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The schedule should be adjusted to the product and destination.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">16. Check the Importing Country&#8217;s Requirements Before Signing<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">One of the biggest mistakes an exporter can make is drafting the contract based only on Kenyan export requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The buyer&#8217;s country may impose additional requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>import permits;<\/li>\n\n\n\n<li>product registrations;<\/li>\n\n\n\n<li>labelling rules;<\/li>\n\n\n\n<li>food safety requirements;<\/li>\n\n\n\n<li>packaging rules;<\/li>\n\n\n\n<li>plant-health requirements;<\/li>\n\n\n\n<li>animal-health requirements;<\/li>\n\n\n\n<li>conformity assessments;<\/li>\n\n\n\n<li>certificates of origin;<\/li>\n\n\n\n<li>language requirements;<\/li>\n\n\n\n<li>product testing; or<\/li>\n\n\n\n<li>sustainability documentation.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For plant products, KEPHIS specifically notes that the exporter should obtain the importing country&#8217;s requirements and comply with the applicable phytosanitary conditions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should allocate responsibility for obtaining each required document.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">17. Be Precise About Quality Standards<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should identify the quality standard against which the goods will be assessed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Possible standards include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Kenyan standards;<\/li>\n\n\n\n<li>international standards;<\/li>\n\n\n\n<li>destination-country standards;<\/li>\n\n\n\n<li>buyer specifications;<\/li>\n\n\n\n<li>industry standards;<\/li>\n\n\n\n<li>agreed laboratory specifications;<\/li>\n\n\n\n<li>sample;<\/li>\n\n\n\n<li>technical drawings; or<\/li>\n\n\n\n<li>an attached product specification.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Kenya&#8217;s Sale of Goods Act contains statutory provisions concerning sales by description and sample, including requirements that goods correspond with their contractual description and, in appropriate circumstances, sample.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A recent Kenyan High Court decision has also applied section 16 of the Sale of Goods Act in considering fitness for purpose and quality issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The practical lesson is:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Do not use vague quality language where the transaction requires measurable specifications.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">18. Decide How Inspection Will Work<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should establish:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>who inspects the goods;<\/li>\n\n\n\n<li>where inspection occurs;<\/li>\n\n\n\n<li>when inspection occurs;<\/li>\n\n\n\n<li>who pays;<\/li>\n\n\n\n<li>which inspection standard applies;<\/li>\n\n\n\n<li>whether an independent inspector is required;<\/li>\n\n\n\n<li>what happens if inspection fails;<\/li>\n\n\n\n<li>whether the inspection is final; and<\/li>\n\n\n\n<li>whether the buyer retains rights to make claims after arrival.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For high-value exports, an independent inspection mechanism can reduce disputes.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">19. Address Rejection and Claims<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should answer:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>What happens if the buyer says the goods are defective?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Specify:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>notification period;<\/li>\n\n\n\n<li>evidence required;<\/li>\n\n\n\n<li>inspection process;<\/li>\n\n\n\n<li>testing procedure;<\/li>\n\n\n\n<li>return procedure;<\/li>\n\n\n\n<li>replacement;<\/li>\n\n\n\n<li>repair where relevant;<\/li>\n\n\n\n<li>refund;<\/li>\n\n\n\n<li>price reduction;<\/li>\n\n\n\n<li>credit;<\/li>\n\n\n\n<li>rejection rights; and<\/li>\n\n\n\n<li>consequences for future shipments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Sale of Goods Act contains provisions dealing with examination and acceptance of goods, including circumstances in which a buyer is deemed to accept goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For international sales, however, the contract should not rely blindly on default statutory rules. Draft the intended commercial process expressly.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">20. Include Packaging and Labelling Requirements<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Packaging can become a contractual issue when the buyer&#8217;s destination country imposes specific requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should specify, where relevant:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>packaging material;<\/li>\n\n\n\n<li>package dimensions;<\/li>\n\n\n\n<li>weight;<\/li>\n\n\n\n<li>pallet requirements;<\/li>\n\n\n\n<li>markings;<\/li>\n\n\n\n<li>barcodes;<\/li>\n\n\n\n<li>batch numbers;<\/li>\n\n\n\n<li>expiry dates;<\/li>\n\n\n\n<li>country-of-origin markings;<\/li>\n\n\n\n<li>handling instructions;<\/li>\n\n\n\n<li>language requirements; and<\/li>\n\n\n\n<li>environmental requirements.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is particularly important for food, agricultural products, pharmaceuticals, chemicals and regulated goods.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">21. Allocate Customs Responsibilities<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should clearly state who handles:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Export clearance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who prepares and submits export documentation?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Import clearance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who handles customs clearance in the destination country?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Import duties<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who pays?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Export taxes or levies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who bears them?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Permits<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Which party obtains each permit?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Customs delays<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who bears the consequences of a delay caused by incomplete documentation?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Incoterms\u00ae can allocate many responsibilities, but the contract should still identify the practical documentation process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">KRA states that exporters generally engage licensed customs clearing agents for export declarations and processing.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">22. Consider the Rules of Origin<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Where preferential tariff treatment may be available, the contract should identify the applicable origin requirements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This can matter under:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>EAC arrangements;<\/li>\n\n\n\n<li>COMESA;<\/li>\n\n\n\n<li>AfCFTA;<\/li>\n\n\n\n<li>bilateral trade arrangements; or<\/li>\n\n\n\n<li>other applicable preferential schemes.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Rules of origin determine whether goods qualify as originating products for preferential treatment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, the EAC Rules of Origin provide for issuance of certificates of origin and require supporting evidence of originating status in the circumstances specified by the rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter should therefore avoid promising preferential tariff treatment unless the relevant origin requirements have been verified.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">23. Include an Insurance Clause<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should establish:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>whether insurance is required;<\/li>\n\n\n\n<li>which party arranges it;<\/li>\n\n\n\n<li>the insured value;<\/li>\n\n\n\n<li>scope of cover;<\/li>\n\n\n\n<li>risks covered;<\/li>\n\n\n\n<li>claims procedure; and<\/li>\n\n\n\n<li>beneficiary\/insured parties where relevant.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The selected Incoterms\u00ae rule may impose insurance obligations on the seller or buyer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the parties should still ensure that the actual insurance arrangement matches the commercial risk.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">24. Decide the Governing Law<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">An international sales contract should normally contain an express governing-law clause.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>&#8220;This Agreement shall be governed by and construed in accordance with the laws of Kenya.&#8221;<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Or the parties may select another legal system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The choice should be deliberate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kenyan courts have recognised the principle of party autonomy in choosing the law applicable to a contract, subject to applicable qualifications such as legality and public policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">But there is an important international-sales issue: the CISG.<\/h3>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">25. Do Not Ignore the CISG<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>United Nations Convention on Contracts for the International Sale of Goods (CISG)<\/strong> provides a uniform framework for international sales of goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">UNCITRAL states that the CISG can apply to sales between parties whose places of business are in different contracting states and can also apply in other circumstances depending on private international law or the parties&#8217; choice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current UNCITRAL status table lists 97 contracting states. <strong>Kenya is not listed among those contracting states.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This does not mean that a Kenyan exporter can ignore the CISG.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Kenyan exporter + buyer located in a CISG contracting state<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract&#8217;s governing-law wording should be reviewed carefully.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the parties choose the law of a CISG contracting state, the CISG may become relevant depending on the wording and applicable rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, the contract should expressly address whether the parties intend the CISG to apply or be excluded where that issue can arise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a specialised drafting point that should be reviewed for the particular transaction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">26. Draft the Dispute-Resolution Clause Before There Is a Dispute<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">An international sales contract should answer:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Where and how will a dispute be resolved?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Possible mechanisms include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Kenyan courts;<\/li>\n\n\n\n<li>foreign courts;<\/li>\n\n\n\n<li>arbitration;<\/li>\n\n\n\n<li>mediation followed by arbitration;<\/li>\n\n\n\n<li>mediation followed by litigation; or<\/li>\n\n\n\n<li>another agreed mechanism.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For international transactions, arbitration can provide a framework for resolving disputes across jurisdictions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kenya&#8217;s Arbitration Act provides for recognition and enforcement of international arbitral awards and incorporates the New York Convention framework, to which Kenya acceded in 1989 with a reciprocity reservation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">27. Do Not Write a Weak Arbitration Clause<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A clause saying:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;Any dispute shall be resolved by arbitration.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">may leave important questions unanswered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A more developed clause can address:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>arbitration institution;<\/li>\n\n\n\n<li>rules;<\/li>\n\n\n\n<li>seat;<\/li>\n\n\n\n<li>number of arbitrators;<\/li>\n\n\n\n<li>appointment procedure;<\/li>\n\n\n\n<li>language;<\/li>\n\n\n\n<li>governing law;<\/li>\n\n\n\n<li>confidentiality;<\/li>\n\n\n\n<li>interim measures; and<\/li>\n\n\n\n<li>enforcement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The choice of <strong>seat<\/strong> is particularly important because it determines the legal framework supervising the arbitration.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">28. Governing Law and Jurisdiction Are Different<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">This distinction is frequently misunderstood.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Governing law<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Answers:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Which law governs the contractual rights and obligations?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Jurisdiction<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Answers:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Which court has authority to hear the dispute?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Arbitration seat<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Answers:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Which legal jurisdiction supervises the arbitration?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">These concepts can interact but are not necessarily identical.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter might, for example, agree to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Kenyan substantive law;<\/li>\n\n\n\n<li>arbitration seated in Nairobi;<\/li>\n\n\n\n<li>English language; and<\/li>\n\n\n\n<li>institutional arbitration under specified rules.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Alternatively, the parties may agree on different arrangements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The appropriate structure depends on the transaction.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">29. Include Force Majeure<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International trade is exposed to events beyond either party&#8217;s control.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A force-majeure clause should address events such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>war;<\/li>\n\n\n\n<li>embargoes;<\/li>\n\n\n\n<li>port closures;<\/li>\n\n\n\n<li>government restrictions;<\/li>\n\n\n\n<li>natural disasters;<\/li>\n\n\n\n<li>epidemics where appropriate;<\/li>\n\n\n\n<li>strikes;<\/li>\n\n\n\n<li>serious transport disruption;<\/li>\n\n\n\n<li>export restrictions;<\/li>\n\n\n\n<li>import restrictions;<\/li>\n\n\n\n<li>major infrastructure failures; and<\/li>\n\n\n\n<li>other specified events.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The clause should also state:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>notice requirements;<\/li>\n\n\n\n<li>mitigation obligations;<\/li>\n\n\n\n<li>duration;<\/li>\n\n\n\n<li>suspension of obligations;<\/li>\n\n\n\n<li>allocation of additional costs; and<\/li>\n\n\n\n<li>when either party can terminate.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Avoid defining force majeure so broadly that ordinary commercial difficulty becomes an excuse for non-performance.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">30. Consider Regulatory and Sanctions Compliance<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter may transact with buyers, banks, freight providers or intermediaries located in several jurisdictions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the transaction, the contract may need provisions concerning:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>sanctions;<\/li>\n\n\n\n<li>export controls;<\/li>\n\n\n\n<li>anti-bribery laws;<\/li>\n\n\n\n<li>anti-money-laundering requirements;<\/li>\n\n\n\n<li>prohibited destinations;<\/li>\n\n\n\n<li>restricted products;<\/li>\n\n\n\n<li>end-user requirements; and<\/li>\n\n\n\n<li>compliance representations.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These requirements can vary significantly by destination and product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exporter should conduct appropriate due diligence rather than relying solely on a standard clause.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">31. Address Data Protection in Digital Export Contracts<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International sales increasingly involve electronic systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter may exchange:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>buyer contact information;<\/li>\n\n\n\n<li>employee information;<\/li>\n\n\n\n<li>passport or identification information;<\/li>\n\n\n\n<li>delivery information;<\/li>\n\n\n\n<li>payment details;<\/li>\n\n\n\n<li>customs information;<\/li>\n\n\n\n<li>signatures; or<\/li>\n\n\n\n<li>information relating to individual representatives.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Where personal data is transferred outside Kenya, the Data Protection Act and applicable regulations need to be considered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kenya&#8217;s Data Protection Act contains provisions addressing transfers of personal data outside Kenya, including circumstances involving safeguards and specified contractual or legal bases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, where the transaction involves international processing of personal data, the contract should address the relevant data-protection responsibilities.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">32. Electronic Signatures Can Be Used in Export Contracts<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter does not necessarily need a physical signing ceremony for every international contract.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">KICA provides that offers and acceptances may be expressed through electronic messages and that a contract cannot be denied validity solely because electronic messages were used in its formation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">KICA also contains provisions concerning attribution of electronic messages and advanced electronic signatures.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For significant export contracts, however, the exporter should preserve:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the final signed agreement;<\/li>\n\n\n\n<li>signing certificates where applicable;<\/li>\n\n\n\n<li>audit trail;<\/li>\n\n\n\n<li>identity-verification information;<\/li>\n\n\n\n<li>authorisation records;<\/li>\n\n\n\n<li>relevant email correspondence; and<\/li>\n\n\n\n<li>amendments.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The objective is to be able to prove <strong>what was signed, by whom, when and under what authority.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">33. Protect Against Electronic Payment Fraud<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International exporters should pay particular attention to changes in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>bank accounts;<\/li>\n\n\n\n<li>beneficiary details;<\/li>\n\n\n\n<li>payment instructions;<\/li>\n\n\n\n<li>intermediary details; and<\/li>\n\n\n\n<li>contact information.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A fraudulent email can appear to come from a legitimate buyer or exporter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract can establish a procedure for changing payment details.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">&#8220;No amendment to the Seller&#8217;s nominated bank account shall be effective unless independently verified through the designated verification procedure.&#8221;<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">The exact procedure should be designed around the company&#8217;s actual controls.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">34. Include Limitation of Liability Provisions Carefully<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International transactions can create substantial exposure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>direct losses;<\/li>\n\n\n\n<li>indirect losses;<\/li>\n\n\n\n<li>consequential losses;<\/li>\n\n\n\n<li>lost profits;<\/li>\n\n\n\n<li>product liability;<\/li>\n\n\n\n<li>recall costs;<\/li>\n\n\n\n<li>transportation losses;<\/li>\n\n\n\n<li>regulatory penalties;<\/li>\n\n\n\n<li>intellectual-property claims; and<\/li>\n\n\n\n<li>third-party claims.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A limitation-of-liability clause should also identify any agreed exceptions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do not simply copy a foreign limitation clause into a Kenyan export agreement without reviewing whether it works under the governing law.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">35. Address Product Liability and Recalls<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">For products entering foreign markets, consider what happens if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the product causes injury;<\/li>\n\n\n\n<li>a regulatory authority rejects the product;<\/li>\n\n\n\n<li>a batch fails testing;<\/li>\n\n\n\n<li>contamination is discovered;<\/li>\n\n\n\n<li>a product must be recalled; or<\/li>\n\n\n\n<li>the buyer faces claims from downstream customers.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The contract can establish:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>notification procedures;<\/li>\n\n\n\n<li>investigation;<\/li>\n\n\n\n<li>testing;<\/li>\n\n\n\n<li>recall responsibilities;<\/li>\n\n\n\n<li>allocation of costs;<\/li>\n\n\n\n<li>insurance;<\/li>\n\n\n\n<li>indemnities; and<\/li>\n\n\n\n<li>cooperation requirements.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">36. Include a Clear Termination Mechanism<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should explain when either party may terminate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Possible grounds include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>material breach;<\/li>\n\n\n\n<li>repeated late payment;<\/li>\n\n\n\n<li>insolvency;<\/li>\n\n\n\n<li>regulatory prohibition;<\/li>\n\n\n\n<li>prolonged force majeure;<\/li>\n\n\n\n<li>sanctions exposure;<\/li>\n\n\n\n<li>failure to meet quality requirements; or<\/li>\n\n\n\n<li>failure to obtain required permits.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It should also explain what happens after termination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>outstanding payments become due;<\/li>\n\n\n\n<li>goods already manufactured are treated in a specified manner;<\/li>\n\n\n\n<li>confidential information is returned;<\/li>\n\n\n\n<li>documents are retained;<\/li>\n\n\n\n<li>outstanding claims survive; and<\/li>\n\n\n\n<li>dispute-resolution provisions remain effective.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">37. Use Schedules Instead of Overloading the Main Contract<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A sophisticated international sales agreement can use schedules for technical details.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 1 \u2014 Product specifications<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 2 \u2014 Pricing<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 3 \u2014 Delivery schedule<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 4 \u2014 Quality standards<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 5 \u2014 Required documents<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 6 \u2014 Packaging and labelling<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\">Schedule 7 \u2014 Inspection procedure<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This makes the main contract easier to update while preserving the legal framework.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">38. A Model Structure for a Kenyan Export Sales Contract<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A practical international sales agreement can follow this structure:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Parties<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Legal identity and addresses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Definitions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Key commercial and legal terms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Goods<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Detailed product description.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Quantity<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Quantity, tolerances and shipment schedule.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Price<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Unit price, currency and adjustments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Payment method, timing and security.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Delivery<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Delivery obligations and schedule.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Incoterms\u00ae<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Selected rule, named place and edition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Risk and title<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Separate treatment where required.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Shipping and documentation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Required documents and responsibilities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">11. Inspection<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Testing and acceptance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">12. Quality and warranties<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Specifications and remedies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">13. Packaging and labelling<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Destination requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">14. Insurance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Responsibility and coverage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">15. Customs and regulatory compliance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Export\/import obligations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">16. Taxes and duties<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Allocation of charges.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">17. Force majeure<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Events beyond reasonable control.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">18. Confidentiality<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Protection of information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">19. Intellectual property<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where applicable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">20. Data protection<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where personal data is processed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">21. Compliance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sanctions, anti-bribery and regulatory obligations where applicable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">22. Limitation of liability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Risk allocation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">23. Indemnities<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Specified third-party or contractual risks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">24. Termination<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Termination rights and consequences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">25. Governing law<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Applicable substantive law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">26. Dispute resolution<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Court or arbitration mechanism.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">27. Notices<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Contractual communication method.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">28. Electronic execution<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Electronic signatures and counterparts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">29. Entire agreement<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Relationship between contract documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">30. Amendments<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">How changes become binding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">31. Assignment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Whether rights can be transferred.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">32. Severability<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Effect of invalid provisions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">33. Waiver<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Treatment of failure to enforce rights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">34. Counterparts<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Execution of multiple copies\/electronic counterparts.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">39. Kenyan Export Contract Checklist<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Before signing, an exporter should ask:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Commercial<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Who is the buyer?<br>\u2610 What exactly is being sold?<br>\u2610 What quantity is required?<br>\u2610 What is the price?<br>\u2610 Which currency applies?<br>\u2610 When must payment be made?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delivery<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Which Incoterms\u00ae rule applies?<br>\u2610 What is the named place?<br>\u2610 When does risk transfer?<br>\u2610 Who arranges transport?<br>\u2610 Who arranges insurance?<br>\u2610 Who handles import clearance?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Documentation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Commercial invoice<br>\u2610 Packing list<br>\u2610 Certificate of origin<br>\u2610 Export declaration<br>\u2610 Bill of lading\/airway bill<br>\u2610 Inspection certificate<br>\u2610 Phytosanitary certificate where applicable<br>\u2610 Other destination-specific certificates<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Quality<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Product specifications<br>\u2610 Applicable standards<br>\u2610 Testing procedure<br>\u2610 Inspection procedure<br>\u2610 Rejection process<br>\u2610 Claims period<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legal<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Governing law<br>\u2610 CISG position considered<br>\u2610 Dispute-resolution mechanism<br>\u2610 Arbitration seat if applicable<br>\u2610 Jurisdiction<br>\u2610 Force majeure<br>\u2610 Termination<br>\u2610 Liability limitations<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Risk<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">\u2610 Payment security<br>\u2610 Currency risk<br>\u2610 Transport risk<br>\u2610 Insurance<br>\u2610 Regulatory risk<br>\u2610 Product liability<br>\u2610 Cybersecurity\/payment fraud<br>\u2610 Data protection<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">40. Common Mistakes Kenyan Exporters Should Avoid<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\">1. Using a purchase order as the entire contract<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A purchase order may not adequately allocate international legal and commercial risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Writing &#8220;FOB&#8221; without identifying the port and Incoterms\u00ae version<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The named place and applicable edition matter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3. Assuming the buyer will handle everything after shipment<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The contract must establish responsibility clearly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. Using vague product descriptions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Words such as &#8220;premium quality&#8221; can create disputes if the parties have different expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5. Ignoring destination-country requirements<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A product that can legally leave Kenya may still face import restrictions abroad.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">6. Leaving payment security to trust<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">International enforcement can be costly. Payment arrangements should reflect the buyer and transaction risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">7. Ignoring the CISG<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Where a transaction involves a CISG contracting state, the parties should deliberately consider whether the Convention applies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">8. Treating title and risk as the same thing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">They may pass at different times.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">9. Using a weak dispute-resolution clause<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A vague clause can create disputes about the dispute process itself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">10. Signing a foreign buyer&#8217;s template without legal review<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The template may assume laws, regulations and remedies that do not fit the Kenyan exporter.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">41. What Documents Should a Kenyan Exporter Have Before Shipment?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the goods and destination, an exporter may need a combination of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>signed sales contract;<\/li>\n\n\n\n<li>purchase order;<\/li>\n\n\n\n<li>commercial invoice;<\/li>\n\n\n\n<li>packing list;<\/li>\n\n\n\n<li>certificate of origin;<\/li>\n\n\n\n<li>customs export declaration;<\/li>\n\n\n\n<li>applicable permits;<\/li>\n\n\n\n<li>inspection certificates;<\/li>\n\n\n\n<li>phytosanitary certificate;<\/li>\n\n\n\n<li>bill of lading;<\/li>\n\n\n\n<li>airway bill;<\/li>\n\n\n\n<li>insurance documentation;<\/li>\n\n\n\n<li>export licences;<\/li>\n\n\n\n<li>product certificates; and<\/li>\n\n\n\n<li>destination-country documents.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">KRA identifies commercial invoices, certificates of origin, relevant permits\/licences, PIN documentation, purchase orders\/contracts and packing lists among export-clearance documentation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Requirements vary according to the goods and destination.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">42. Exporters Should Also Monitor Current Customs Requirements<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">International sales contracts should be drafted with the actual logistics and customs process in mind.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, KRA currently states that an <strong>Advance Cargo Declaration (ACD) platform became operational for containerised cargo destined for Kenyan ports from 3 August 2026<\/strong>, with the shipper\/exporter required to obtain an ACD Reference Code before loading and the code being endorsed on the Bill of Lading.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a good illustration of why export contracts should not assume that logistics requirements remain static.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The legal and operational checklist should be reviewed before shipment.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">43. Why Kenyan Exporters Need Transaction-Specific Contracts<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A Kenyan exporter of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>tea,<\/li>\n\n\n\n<li>coffee,<\/li>\n\n\n\n<li>flowers,<\/li>\n\n\n\n<li>avocados,<\/li>\n\n\n\n<li>processed food,<\/li>\n\n\n\n<li>textiles,<\/li>\n\n\n\n<li>manufactured goods,<\/li>\n\n\n\n<li>machinery,<\/li>\n\n\n\n<li>software-related products,<\/li>\n\n\n\n<li>pharmaceuticals,<\/li>\n\n\n\n<li>chemicals,<\/li>\n\n\n\n<li>minerals, or<\/li>\n\n\n\n<li>other goods<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">may face completely different regulatory and commercial risks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is therefore no single &#8220;Kenya export contract&#8221; that works for every transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A good contract reflects:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>the product + buyer + destination + transport method + payment method + regulatory environment + applicable law + enforcement strategy.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">44. How a Kenyan Commercial Lawyer Can Help<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">A lawyer reviewing an international sales contract should look beyond grammar and formatting.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The legal review should consider:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Contract formation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Is there a clear and enforceable agreement?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Risk allocation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who carries the major commercial risks?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Delivery<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Does the Incoterms\u00ae rule match the actual logistics arrangement?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">What happens if the buyer does not pay?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Quality<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">What objectively determines conformity?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Regulatory compliance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Who obtains each licence and certificate?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Governing law<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Which legal system governs?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">CISG<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Has its possible application been addressed?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dispute resolution<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Can the exporter realistically enforce its rights?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Data and cybersecurity<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Are electronic contracting and data-processing risks addressed?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Termination<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Can the exporter exit if the commercial relationship becomes untenable?<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">45. Final Takeaway<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">For a Kenyan exporter, an international sales contract is more than a document recording the price of goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is the legal framework that allocates the risks created by <strong>distance, transportation, payment, customs, regulation, quality, currency, technology and different legal systems<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A properly drafted contract should make the following clear:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>What is being sold?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>At what price?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>When must it be delivered?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Who arranges transport?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>When does risk transfer?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>When does title transfer?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Who obtains each export and import document?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Who bears duties and other charges?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>What happens if the goods are defective or delayed?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Which law governs the contract?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Does the CISG apply?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Where will disputes be resolved?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>How will an award or judgment be enforced?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>How are electronic records, payments and personal data protected?<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">For Kenyan exporters entering international markets, answering these questions <strong>before signing the contract<\/strong> can be substantially more effective than trying to resolve them after a shipment, payment or quality dispute has already arisen.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What should a Kenyan export sales contract contain?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At minimum, it should clearly address the parties, goods, quantity, price, currency, payment, delivery, Incoterms\u00ae, risk, title, documentation, quality, inspection, warranties, customs responsibilities, force majeure, governing law and dispute resolution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Which Incoterms\u00ae should Kenyan exporters use?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There is no universally appropriate Incoterms\u00ae rule. The appropriate rule depends on the goods, transport method, logistics structure and commercial allocation of risk. The contract should specify the selected rule, named place and <strong>Incoterms\u00ae 2020<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Should a Kenyan exporter use Kenyan law?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The parties can choose governing law subject to applicable legal constraints. Whether Kenyan law is appropriate depends on the transaction, counterparty, destination and enforcement considerations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Does the CISG apply to Kenyan exporters?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Kenya is not listed as a CISG contracting state in the current UNCITRAL status table. However, the CISG can become relevant to an international sale depending on the other party&#8217;s country, applicable private international law and the parties&#8217; contractual choices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can an international sales contract be signed electronically?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Kenyan law recognises electronic contract formation and provides a framework for electronic signatures and electronic messages. The specific transaction should still be reviewed for any statutory formalities that apply.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who pays customs duties in an export transaction?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The answer depends on the transaction and, where incorporated, the selected Incoterms\u00ae rule. The contract should state the allocation clearly rather than relying on assumptions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What happens if an international buyer does not pay?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The contract should establish payment security, default provisions, interest where appropriate, suspension\/termination rights and the dispute-resolution mechanism. The appropriate remedy will also depend on the governing law.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Should Kenyan exporters use arbitration?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Arbitration can be useful for international transactions, particularly where enforcement across jurisdictions matters. The clause should be drafted carefully to address the institution or rules, seat, language, appointment and enforcement. Kenya&#8217;s Arbitration Act provides a framework for international arbitration and enforcement of foreign arbitral awards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Legal Practice: Corporate &amp; Commercial Law | International Trade | Commercial ContractsJurisdiction: KenyaLast reviewed: 18 September 2026 Legal information notice: This article provides general information for Kenyan exporters. The legal requirements for a particular export can depend on the product, destination country, transaction structure, applicable trade agreement, governing law, regulatory requirements and dispute-resolution mechanism. A [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8810,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_nuwtonic_replace_meta":[],"_nuwtonic_replace_schema":[]},"categories":[1],"tags":[],"class_list":["post-8809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Kenyan Exporters Should Draft International Sales Contracts<\/title>\n<meta name=\"description\" content=\"Learn how Kenyan exporters should draft international sales contracts covering price, Incoterms, payment, delivery, quality, customs, governing law, arbitration, force majeure and risk.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/okenyoomwansaadvocates.co.ke\/index.php\/2026\/10\/02\/international-sales-contracts-kenyan-exporters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Kenyan Exporters Should Draft International Sales Contracts\" \/>\n<meta property=\"og:description\" content=\"Learn how Kenyan exporters should draft international sales contracts covering price, Incoterms, payment, delivery, quality, customs, governing law, arbitration, force majeure and risk.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/okenyoomwansaadvocates.co.ke\/index.php\/2026\/10\/02\/international-sales-contracts-kenyan-exporters\/\" \/>\n<meta property=\"og:site_name\" content=\"Okenyo Omwansa &amp; Co. 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