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WHAT WE MUST LEARN FROM KENYA IN TERMS OF ELECTRONIC CONTRACTS

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"This paper presentation is about the potential amendments made by the Kenya Communication Amendments Act No.1, assented on 30th December 2008 and come into force in 1st January 2009 amended the old Kenya Communication Act No.2 of 1998, for the purpose of improving access to global markets, and supporting both individual and organizations liabilities particular on the matter relating to the Formation, Validity, and Enforceability of Electronic Contracts. The main legal questions in this presentation will be, whether the Amendment Act has provided for e-contract formation, e-contract formalities and whether e-contracts are enforceable. And for the purpose of this paper presentation, the term Act will be referred to the Kenya Communication Amendments Act No.1 of 2009. "

RAC HEL Digitally signed by RACHEL DN: cn=RACHEL Reason: I am the author of this document Location: Iringa-Tanzania Date: 08/17/13 10:44:49 ELECTRONIC CONTRACTS IN RECENTLY KENYA WHAT WE MUST LEARN FROM KENYA IN TERMS OF ELECTRONIC CONTRACTS This paper presentation is about the potential amendments made by the Kenya Communication Amendments Act No.1, assented on 30th December 2008 and come into force in 1st January 2009 amended the old Kenya Communication Act No.2 of 1998, for the purpose of improving access to global markets, and supporting both individual and organizations liabilities particular on the matter relating to the Formation, Validity, and Enforceability of Electronic Contracts. The main legal questions in this presentation will be, whether the Amendment Act has provided for e-contract formation, e-contract formalities and whether e-contracts are enforceable. And for the purpose of this paper presentation, the term Act will be referred to the Kenya Communication Amendments Act No.1 of 2009. BY ASHERRY MAGALLA [8TH AUGUST 2013] 2 E-CONTRACTS LAW IN RECENTLY KENYA. By Asherry Magalla1 Introduction This paper presentation is about the potential amendments made by the Kenya Communication Amendments Act No.1, assented on 30th December 2008 and come into force in 1st January 2009 amended the old Kenya Communication Act No.2 of 1998, for the purpose of improving access to global markets, and supporting both individual and organizations liabilities particular on the matter relating to the Formation, Validity, and Enforceability of Electronic Contracts. The main legal questions in this presentation will be, whether the Amendment Act2 has provided for e-contract formation, e-contract formalities and whether e-contracts are enforceable. And for the purpose of this paper presentation, the term Act will be referred to the Kenya Communication Amendments Act No.1 of 2009. Meaning and Origin of E-Contracts in Kenya E-Contracts like any other traditional contracts are the agreements that can be enforced by the law between two or more persons to do or to abstain from doing some act or acts with an intention of creating legal relations3. The only difference from the other ordinary contracts is that E-Contracts are executed electronically through interconnected networks. 1 LL.B Degree Holder at Iringa University (Formerly known as Tumaini University Iringa University College) 2009-2012, currently a Masters Candidate in Information, Communication and Technology Law at Iringa University2012-2013, Author and a trainee in lecturing at Iringa University 2 Kenya Communication Amendments Act No.1 of 2009 3 Adam J. Mambi, ICT LAW BOOK, a Source Book for Information and Communication Technologies and Cyber Law in Tanzania and East Africa Community, 2010 at pages 22-23. Magallajr©2013 3 In Kenya, before the development of the law dealing with E-Transactions, computer print-outs have always been regarded as hearsay evidence which entails that, “an assertion other than one made by a person while giving oral evidence in the proceedings is inadmissible as evidence of a fact asserted”4. The evidential status of a computer print-out was of no different from that of a photocopy of a forged cheque. Generally there was no supportive law in Kenya which apprehended the use and applicability of electronic transactions including E-Contracts.5 In Kenya the current focus by the government on the E-Contracts and E-Commerce in general is to endeavor to develop policies that recognize the electronic aspects of trade in transformation of the economy into a modern market oriented one, to protect rights of the parties into contracts. Through the Electronic Transactions Bill of 2007, it provides for the validity and enforceability of any digitalized information6. It further stated that, where the law requires information to be in writing, the requirement of the law is fulfilled if the information is contained in electronic version that is accessible and intelligible so as to be useable for subsequent reference7. Personal Assessment on the Act From the beginning of the Act, there are some developments on the law of the E-Commerce which also include E-Contracts. The long title of the Kenya Communication Act, 1998, is amended to include words which facilitate the development of the information and communications sector including electronic commerce. Various definition of the E-Commerce terms were added, for instance Section 4 of 4 Cross and Taper on Evidence (8th Edition, 1995) page 46. 5 Ibid 6 Anthony Okulo,LLB, LLM (Technology), Development of a Legal Framework for E-Commerce in Kenya, Strathmore University 9th ICT Seminary (8th Sept 2008) 7 The Electronic Transactions Bill, 2007, Part III Section B. Magallajr©2013 4 the Act,8 meaning of the words such as advance electronic signature, agreement, certificate, computer, computer service and system, electronic form and record. These words indicated the consciousness of the government on the matters relating to electronic transactions. Part VIA of the Act covers the Electronic Transactions. It is from this part, the answers for the above three legal questions could be answered; On whether the Act provide for the formation of the E-Contracts The act of the Act to recognize the electronic records automatically renders the existence of electronic contracts9. If a person is required by the law to provide information in writing for example a contract, but such information has been digitalized, by recognizing such electronic records or data, electronic contract can be formed because such digitalized data or information can be used to prove the existence of a particular electronic transaction. On whether the Act provide for the E-Contract formalities In terms of e-contracts formalities and validity, Section 83J of the Act provides for the formation of the electronic contracts unless otherwise agreed by the parties. Offer and acceptance of the offer is valid if is electronically made through messages, and the section cemented on the enforceability of the electronic messages as to the formation of the electronic contract. The intention of the parties to the contract can also be expressed through electronic messages and no one shall denied its legal effects, validity and enforceability of the formed contract on the ground that it is in the form of an electronic message. This is provided by section 83K of the Act.10 8 Kenya Communication Amendments Act No.1 of 2009 9 Section 83G of the Act. 10 Kenya Communication Amendments Act No.1 of 2009 Magallajr©2013 5 The act of recognize the electronic signatures as provided by section 83P, directly entails the existence of the contract, as signature is one among the components that validate and assured the legality of the contract by the parties to the contract. On whether the Act provide for enforceability of e-contract Since the above two issues have prove the existence of electronic contracts, then without hesitation, the Act did provide for the enforceability of the electronic contracts. Sections 83G, 83J and 83P all of these provisions create a picture as to the existence and enforceability of the electronic contracts. In a nutshell, Kenya has developed ahead of Tanzania in matters relating to e-commerce laws and regulations. The truth is that, one cannot compare the two countries on the matter. In Tanzania our law is still silence on the issues of electronic transactions. Even though the Written Laws (Miscellaneous Amendment) (No.2) Act, 2007 tried to apprehend the admissibility of electronic evidence, still the problem remain the same. Tanzania should adopt and harmonize laws relating to e-commerce so as to keep pace with the development of science and technology, so as to help the judiciary to provide not only just, but fair decisions. There is a need of harmonizing and establishing laws such as Electronic Transactions Act which could serve the purpose of all electronic transactions, Evidence law should stipulate clearly on the electronic evidence so that disputes on electronic contracts can be easily solved, Penal Code should include and regulate offences relating to computer and computer transactions itself. There is need to continue with the debate and further analytical work including impact studies to get a clear picture of implications of E-Commerce for the development of our country. Albert Einstein once said, “Every child is born a genius”. But the reason why most people do not function at genius levels is because they are not aware of hoe creative and smart they really are. Magallajr©2013 6 Let us use the genius and creativity that we have so that we can combat the loopholes present on our laws governing e-commerce in Tanzania to keep pace with the development of science and technology. Remember that, “no one can go back and make a brand new start but anyone can start from now and make a brand new ending”. Then let starts now. Magallajr©2013 7 BIBLIOGRAPHY Text Books Adam J. Mambi, ICT LAW BOOK, a Source Book for Information and Communication Technologies and Cyber Law in Tanzania and East Africa Community, Mkuki na Nyota Publishers Limited, 2010. Internet Sources World Wide Websites www.kenyanlaw.org/search/kenya CommunicationAmendmentActNo.1 2009 extracted on 26th November 2012 at 2345 hours. Article Anthony Okulo,LLB, LLM (Technology), Development of a Legal Framework for E-Commerce in Kenya, Strathmore University 9th ICT Seminary (8th Sept 2008). J Humphrey, and 3 others, the Reality of E-Commerce with Developing Countries, March 2003, Media@lse, Globalization and Poverty-2003. Statutes The Kenya Communication Amendments Act No.1 of 2009. The Kenya Communication Act No.2 of 1998. The Written Laws (Miscellaneous Amendment) (No.2) Act, 2007 The Electronic Transactions Bill of 2007. Magallajr©2013