SLSs centre to host Inter-bank disputes mediation center
Kenya Bankers Association (KBA) has chosen Strathmore Dispute Resolution Centre (SDRC) as their mediation centre for inter-bank disputes and disputes between clients and banks. The Inter-bank mediation center is a pilot project established to provide complimentary service for banks and their customers in an effort to promote Alternative Dispute Resolution (ADR) practices, mainly mediation, as an alternative to litigation. SDRCs panel of mediators will be sitting on an ad-hoc basis to resolve disputes in record time, a departure from the current cases before the courts.
Kenya Bankers Association is encouraging its members, the banks, to resort to mediation and through the Inter-bank mediation centre which will handle cases dealing with transactions, loans and credits disputes and court cases where both parties are willing to discuss an alternative agreement outside the court.
There are many reasons why mediation is a good alternative given that, firstly litigation is a long process. The typical timeline for banking disputes to be settled through the court system will be reduced from 5 years to just 4 days from initiation of mediation to settlement and closure of the entire process.
Secondly, mitigation processes are as lengthy as they are costly, legal fees can be as high as K.sh 500,000 or 1 million. The court system has a backlog which would take the judiciary at least 7 years to clear if there were no new cases filed.
Strathmore Dispute Resolution Center (SDRC)
Located within Strathmore Law School, SDRC is a justice and research center that focuses on promoting and facilitating Alternative Dispute Resolution, and in particular Mediation, in Kenya and the wider East African region. SDRC was founded in 2012 following a Memorandum of Understanding, between the Strathmore Law School and the Dispute Resolution Center. Established in recognition of the need to provide alternatives to litigation as a means of resolving disputes, the Center seeks to be a lead promoter and facilitator to parties seeking third-party Mediation services for their disputes. SDRC also provides Mediation services and alternative dispute resolution training to the legal fraternity, and the private and public sectors.
Kenya Bankers Association
As the umbrella body of the commercial banks licensed under the Banking Act Cap 488, with a current membership of 44 banks, Kenya Bankers Association has endeavoured to reinforce a professional banking industry in a bid to best support Kenyans who entrust their ambitions and hard-earned resources with its member banks. In line with the Governments Policy on Public-Private Partnerships, the Association works closely with the Central Bank to coordinate major initiatives towards the development of banking services. Under this partnership, the Association and CBK have implemented several key milestone projects, including the introduction the Real Time Gross Settlement System (RTGS), and Credit Information Sharing through credit reference bureaus. For more information and to read the Consumer Guide to Banking in Kenya.
Visit www.kba.co.ke or email firstname.lastname@example.org.