Introduction

The National Assembly has introduced the Law of Contract (Amendment) Bill, 2025, proposing far-reaching reforms to the Law of Contract Act.

If enacted, the Bill will significantly restrict the use of exclusion and limitation of liability clauses — particularly in consumer contracts and in cases involving negligence.

For many businesses, this could mean a fundamental rethink of standard terms, risk allocation models, and insurance arrangements.

This newsletter covers an analysis of the key proposed changes and how your business should begin preparing.

Caveat

This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm.