Updated October 13, 2026 · Published by WKA Advocates
Good credit terms define the customer, price, payment date and process for raising disputes. Verify who is ordering and on whose behalf before supplying on credit. Keep acceptance and delivery records so the accounts team can explain the balance without reconstructing the transaction months later.
What Matters in Business credit control
Use proportionate credit limits, review overdue accounts early and make scope changes explicit. Guarantees or security may be appropriate in some transactions but need correct preparation and legal review. A consistent escalation policy helps distinguish administrative delays from deteriorating payment prospects while maintaining a professional customer relationship.
Practical Preparation Checklist
Agree payment and dispute terms before supply.
Verify the customer's legal identity and authorised contacts.
Review overdue accounts and evidence gaps at regular intervals.
Evaluate the Evidence and Recovery Route
Bring a reconciled balance that distinguishes the principal, agreed interest, payments and any disputed items. The chronology should explain when payment became due and what happened after default. Correct debtor identification is essential: a company, trading name and individual representative may have different legal positions.
Consider the contract’s notice and dispute terms alongside any existing proceedings. An advocate can assess the appropriate forum, limitation concerns and whether a demand, settlement or claim is proportionate. Do not assume that silence proves liability or that a payment promise guarantees collection.
Plan for Payment, Not Only a Claim
Compare the expected recovery with the time, fees and practical enforcement risks. If payment is offered, record the terms clearly and credit all amounts received. If proceedings become necessary, maintain complete evidence and service records. After judgment, check the decree and any stay before considering lawful execution.
Common Question
Can strong credit terms eliminate every bad debt?
No. They can reduce uncertainty and improve the evidence, but financial distress and genuine disputes still require individual assessment.
General information for Kenyan debt recovery. The correct advice depends on the agreement, evidence, current law and circumstances. Updated 13 October 2026.
