Acknowledgment of Debt in Kenya

Acknowledgment of Debt in Kenya

An acknowledgment of debt is a written statement in which a debtor formally confirms owing a specific amount to a creditor. This acknowledgment creates a legally enforceable obligation, making it easier for creditors to recover debts. However, for it to hold legal weight, certain requirements must be met.

Legal Requirements for an Acknowledgment of Debt in Kenya

1. Form and Content

For an acknowledgment of debt to be valid, it must:

• Be in writing.

• Be signed by the debtor.

• Clearly state the amount owed, the date the debt was incurred, and any relevant details regarding repayment.

2. Consideration

An acknowledgment of debt must be backed by consideration. Consideration refers to something of value that the creditor has provided, such as goods, services, or even an agreement to delay legal action. Without consideration, the acknowledgment may not be enforceable.

3. Capacity of the Debtor

The debtor must have the legal capacity to acknowledge the debt. This means they must:

• Be at least 18 years old.

• Be of sound mind.

• Not be under duress, coercion, or undue influence when signing the document.

4. Statute of Limitations

A valid acknowledgment of debt can only revive a debt that is not time-barred. In Kenya, contractual debts have a limitation period of six years from the date they became due. If a debtor acknowledges the debt within this period, it extends the timeframe for legal enforcement.

5. Witnesses (Optional but Recommended)

Although not a legal requirement, having witnesses to the signing of the acknowledgment strengthens its validity. In case of disputes, witnesses can provide supporting evidence that the document was signed voluntarily.

6. Registration (Optional but Beneficial)

While an acknowledgment of debt does not need to be registered under the Registration of Documents Act, doing so can help prevent disputes and ensure the document is easily accessible for future reference.