Nairobi, Aug. 24 -- You lend Sh500,000 to a relative who needs the money to get through a difficult financial period. You agree that they will pay you back, but because you are family, you do not put anything in writing. Months later, you ask for your money back. Your relative tells you they cannot or will not repay you. Without a signed agreement, do you have any legal recourse?

According to Fridah Muriithi, an associate in the commercial department at MMTK Law, the absence of a written agreement does not automatically prevent a lender from recovering money. Kenyan law recognises both written and oral contracts, meaning a loan does not always have to be in writing to be enforceable unless the law specifically requires it.

The bigger ch...