Small Claims Courts are established under the Small Claims Court Act 2016.They were established to help resolve civil disputes of amounts up to one million Kenyan shillings (Ksh.1, 000,000)
The Small Claims Courts have played a significant role in reducing the case backlog in the Magistrates’ Courts. They hear and determine cases expeditiously, with a statutory timeline of sixty (60) days for the disposal of matters. This is in line with Article 159 of the Constitution of Kenya, 2010, which emphasizes the efficient and timely administration of justice
Section 12 of the small Claims Court Act provides that the courts have the power to determine any civil claim relating to: –
(a) a contract for sale and supply of goods or services;
(b) a contract relating to money held and received;
(c) liability in tort in respect of loss or damage caused to any property or for the delivery or recovery of movable property;
(d) compensation for personal injuries; and
(e) set-off and counterclaim under any contract.
Emerging Jurisprudence
Personal Injury Claims in the Small Claims Court.
Under Section 12(1)(d) of the Small Claims Court Act 2016, the Small Claims Court was originally mandated to address compensation for personal injuries. This was provided to offer a quick and a low-cost route for victims that are seeking a redress for bodily harm as long as the claimed amount falls within the set limit of Ksh. 1,000,000.
However, in a ruling delivered on 22nd January 2026, the court in the case of James Muriithi Gathaiya v Attorney General and Others (E008 of 2024) held that personal injury claims arising from motor vehicle accidents fall outside the jurisdiction of the Small Claims Court. It stated that such matters are better suited for more structured environment of the Magistrates’ Courts as they often are complex in the nature of accessing liability, quantifying general damages and applying specialised traffic laws. The ruling declared that RTA related personal injury claims are excluded from Section 12(1)(d) of the Act and directed that all pending cases of this type to be transferred to the appropriate Magistrates’ Court.
Following this judgement, Chief Justice Martha Koome issued formal guidelines through a notice published in the Kenya Gazette in May 2026 that provides a clear framework for transferring unresolved personal injury claims that arise from road accidents from Small Claims Court to Magistrates’ Court. This is as effective to cases still pending as of 22nd January 2026, any judgement already issued by Small Claims Courts before the ruling remain valid and enforceable and transferred files retain their original documentation to ensure continuity and avoid unnecessary duplication.
Can the small claims court hear and determine disputes arising from Landlord -Tenancy Agreements?
In Michelle Muhanda v LP Holdings Ltd (Civil Appeal E256 of 2023) [2025] KEHC 393 (KLR), the High Court held that in tenancy-related disputes before the Small Claims Court, jurisdiction is limited to claims concerning deposits, as these fall within section 12(1)(b) of the Act as a contract for money held and received. This means the Small Claims Court cannot determine other rent-related disputes beyond deposit recovery.
From the foregoing, land lord-tenant disputes do not fall within the scope of the small claims court Jurisdiction. In Christoffersen v Kavneet Kaur Sehmi T/A The Random Shop (Civil Appeal No. E036 OF 2022), the High Court observed that a claim before the Small Claims court must fit into any of the five categories of cases enumerated in section 12 (1) of the Small Claims Court Act, 2016.
Conclusion
In conclusion, Small Claims Courts have emerged as valuable tools for delivering fast, affordable and accessible justice to ordinary citizens and small businesses. They have eased court congestion, improved cash flow for micro enterprises, encouraged contract compliance and strengthened public trust in the legal system. Despite the limitations, these courts mark a significant step toward inclusive justice in Kenya. With greater awareness and continued improvements, they promise to play stronger roles in empowering everyday Kenyans to resolve minor disputes effectively.

