UNIVERSITY OF NAIROBI

COLLEGE OF HUMANITIES AND SOCIAL SCIENCES

SCHOOL OF LAW

A CRITIQUE OF THE LEGAL TECH ECOSYSTEM IN KENYA

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF

A DEGREE IN BACHELOR OF LAWS (LL.B)

SUPERVISOR:

SUBMITTED: MARCH 2022

1. Introduction

Background and Context

Legal Technology (LegalTech) is defined as the use of new technologies such

as blockchain technology inter alia in order to offer legal services more
effectively and efficiently1. In this paper we recognize that LegalTech has also
been known to be used by regulators to ease regulatory and compliance
burdens2. LegalTech has been for the longest time been understood as the
use of law firm technology used to help with practice management,
accounting, billing, and document storage and retrieval 3. LegalTech now is
involved with enhancing internal law firm processes and connecting the
consumers of legal services to law firms.

The Constitution of Kenya, 2010 provide citizens with the right of access to
justice and strives to ensure that the right is enjoyed by all persons 4. It is
without a doubt that LegalTech can improve access to justice. In fact,
discussions on enhancing access to justice are incomplete without talking
about how Technology, legal or otherwise is going to be adopted.
Furthermore, It is commendable that the Judicial Service Act requires the
Judiciary and the Judicial Service Commission to improve their work
methods by embracing technology5. Also the kind of use of Technology in the
legal sphere that the Magistrates’ Courts Act envisioned is the automation of
Court records, case management, protection and sharing of Court
information and the use of information communication technology 6.

The LegalTech industry has grown in leaps and bounds. The past few years
have seen an increase in the use of LegalTech facilities such as e-Discovery
platforms and hi-tech case law search engines; contract generators, software
that can appeal parking tickets automatically, and ODR platforms that can

1
‘Legal Technology’ (ITChronicles) <https://itchronicles.com/legal-technology/> accessed 18 March 2022.
2
ibid.
3
Kariuki Muigua, ‘Legal Practice and New Frontiers: Embracing Technology for Enhanced Efficiency and Access
to Justice’.
4
Constitution of Kenya, 2010, Government Printer, Nairobi. Article 48.
5
Ndungu Njuguna James, ‘Adopting Information Technology in the Legal Profession in Kenya as a Tool of
Access to Justice’ 49.
6
ibid.
provide ‘auto-resolution’ mechanisms. In addition there has been increase in
use of online legal services comprising of digital platforms that provide legal
services including legal advice, consultation, and Q&A forums; lawyers
marketplaces which are digital platforms that connect clients with lawyers
and legal documentation by startups that generate legal documents for their
users online. Furthermore, legal practice management that involves the use
of computer systems and data analytics in the legal sector 7.

Interestingly, “the impact of legal tech on the legal industry has become so
pervasive that the Financial Times has even reported that there will soon be
an “uberization” of lawyers.” Worldwide, LegalTech is big business found in
2019 to be generating USD 17 billion and it is projected to grow at a
compound annual growth rate of 28% and achieve revenues of USD 2.5
billion by 20258. This statistic clearly shows the importance that we should
put in analyzing and utilizing legal tech in the administration of justice and
development of the rule of law. Recent major interesting developments have
been in the law have been brought by LegalTech.

2. Problem Statement

As evident herein above, there’s massive potential for legal tech. However,
adoption LegalTech in the legal profession has not been without challenges.
For instance, advocates have been reluctant to adopt these new working
ways because of the conservative nature of the legal profession. This I
believe results in the law always playing catch up.

Furthermore, despite the tremendous growth of LegalTech statistics form

the Unites States form Global Insights on Access to Justice Survey by the
World Justice Project portray a different story. For instance, “it was
captured inter alia that 66% of the people surveyed experienced a legal
problem; 76% knew where to get advice; only 33% of those surveyed were
able to get help in terms of advice and representation. Only 48% of those
surveyed were able to resolve the problem and for those who were able to

7
Irene, ‘Maneuvering in the Tech Era: Proposing a New Approach in Regulating Legal Technology Based on a
Comparative Study of the US and EU’ (2017) 3.
8
‘Legal Technology’ (n 1).
solve the problem, it took at least eight months. 45% of those who
experienced a problem had a hardship as a result. It doesn’t help the
situation at all that the United Nations estimates that around four billion
people worldwide are excluded from the rule of law9.

In my research I recognize that the abovementioned stats are from the USA
and other countries considered to have advanced legal systems and many
lawyers as compared to Kenya. What is missing in research is a Kenyan
perspective of what is really happening with regards to the adoption and use
of LegalTech in Kenya. Getting this kind of research on LegalTech that’s
available for use, how it has been used in the Kenyan legal landscape will
help us know if really, it’s making the leaps and bounds or we are just over
ambitious. In summary, there is a need for a better understanding of the
true contribution of LegalTech in Kenya, whether it has been implemented
in the courts and the potential for its rapid growth. More specifically, the
following research questions need to be addressed:

1. How is the LegalTech sphere regulated?

2. What is the status on the adoption on of LegalTech in Kenya?
3. What is the potential for LegalTech services in the coming future?
4. How does LegalTech in Kenya compare with other countries with
developed Technologies and Legal systems

In this research I aim to provide a comprehensive review of sources and

characteristics of the LegalTech Ecosystem in Kenya. I endeavour to
examine the services available in the LegalTech Ecosystem in order to shed
light on information that will be of use to further studies and policies in this
are of LegalTech. I also aim to investigate the regulatory and policy
framework of LegalTech in Kenya in order to fully appreciate the subject.
Further I aim to assess my findings to the findings of other scholars about
the true contribution of LegalTech in Kenya.

I believe this kind of research is relevant and important because it’s only
when we have information on the scope and application of the LegalTech

9
ibid.
services in Kenya that we can really utilize the opportunities presented by
LegalTech. In my research I recognize, as other scholars, that there’s
potential for massive growth and betterment of legal services to the people of
Kenya.

3. Preliminary Literature Review

Many scholars have written about the disruptions expected to be brought

about in the legal industry through the adoption of Technology (LegalTech).
Notably, Richard Susskind posits that lawyers must change to prevent being
outsmarted by technology. He argues that:

“...lawyers who are unwilling to change their working practices and

extend their range of services will in the coming years struggle to
survive. Meanwhile those who embrace new technologies and novel
ways of sourcing legal work are likely to trade successfully for many
years yet, even when they are not occupied with the law jobs that most
law schools currently anticipate for their graduates 10.”

This emphasizes the point of my research whereby I acknowledge that it is

important for stakeholders in the legal industry understand the risks that
are there with missing out on the opportunity to adopt LegalTech. His
research is relevant for me to consider because Richard’s books give
examples of legal services that have adopted technology and those that will
soon enough be overtaken by technology. My research thus gives a Kenyan
perspective about the LegalTech services in Kenya and how they apply to a
Kenyan context.

Dr. Kariuki Muigua makes the case that it is the Covid-19 pandemic that
gave LegalTech the much-needed boost in its adoption. In his paper he
urges lawyers and law schools to adopt technology in the work that they
engage in in order to be ready for the opportunities that are available in
LegalTech11 . He looks positively on adoption of Technology and view it as a
tool for good that can aid in enhancing administration of justice and even
10
Richard Susskind, The End of Lawyers? Rethinking the Nature of Legal Services (Oxford University 2008) 169.
11
Kariuki Muigua, ‘Embracing Science and Technology in Legal Education for Efficiency and Enhanced Access to
Justice’ 32.
teaching of law in our schools. My research will also focus on the
recommendations given by Dr. Muigua but in a more holistic approach and
not specific to legal education, like in his article.

Furthermore, Vellah Kedogo Kigwiru posits that lawyers must embrace and
be aware of technologies such as inter alia, blockchain technologies,
electronic discovery, cryptocurrency and e-filing. She argues that in order
for lawyers to make it in the competitive legal industry, they can leverage the
use of LegalTech to do so12. She also posits that the legal market is
extensively regulated and lawyers enjoy exclusivity in the provision of
certain legal services to the exclusion of other unlicensed service providers 13.
She identifies that LegalTech bring with them a number of regulatory
concerns such as the regulation of unlicensed legal services providers, price
regulation and professional competence 14. My research will look into how
Legal Tech is regulated in Kenya as well as the regulatory and policy
concerns and not just to the context of competition as Vellah did.

4. Research Proposal Methodology

This paper mainly involves laptop research. Library research and internet
research will also be conducted so as to get relevant information concerning
the topic and to build up more understanding to the problem. Moreover, to
get the theoretical information relating to the problem, also to know what
has been addressed by other researchers. The primary sources of
information shall be the Constitution of Kenya 2010; Acts of Parliament of
Kenya including Case law from Kenya and other relevant jurisdictions; and
International legal instruments.

The secondary sources of information shall be Textbooks, journals and other

texts by authoritative authors; and the internet including online libraries
and websites. In addition, secondary data will involve, newspapers, reports,
brochures, articles, dissertations, journals and electronic sources.

12
VELLAH KIGWIRU, ‘EMERGING TECHNOLOGICAL INNOVATIONS IN THE LEGAL PROFESSION AND ITS IMPACT
ON THE REGULATION OF MARKET COMPETITION: KENYAN PERSPECTIVE’ 8.
13
ibid.
14
ibid.
5. References

Irene, ‘Maneuvering in the Tech Era: Proposing a New Approach in

Regulating Legal Technology Based on a Comparative Study of the US and
EU’ (2017)

James NN, ‘Adopting Information Technology in the Legal Profession in

Kenya as a Tool of Access to Justice’

KIGWIRU V, ‘EMERGING TECHNOLOGICAL INNOVATIONS IN THE LEGAL

PROFESSION AND ITS IMPACT ON THE REGULATION OF MARKET
COMPETITION: KENYAN PERSPECTIVE’

‘Legal Technology’ (ITChronicles) <https://itchronicles.com/legal-

technology/> accessed 18 March 2022

Muigua K, ‘Embracing Science and Technology in Legal Education for

Efficiency and Enhanced Access to Justice’

‘Legal Practice and New Frontiers: Embracing Technology for Enhanced

Efficiency and Access to Justice’

Richard Susskind, The End of Lawyers? Rethinking the Nature of Legal

Services (Oxford University 2008)

Constitution of Kenya, 2010, Government Printer, Nairobi.