Judges struggle to clear backlog of 2,000 trade cases worth Sh389bn

Over 2,000 trade disputes valued at Sh389 billion were still unresolved at the Milimani High Court’s commercial division by the end of 2024, worsening the financial struggles of businesses and the country’s economy as they await justice.

Data from the court’s commercial and tax division indicate a significant increase in disputes, with businesses favouring litigation over alternative resolution mechanisms such as mediation.

Despite efforts to address the backlog, the growing litigious culture and limited judicial capacity continue to hinder progress.

Between 2019 and 2024, the division handled 15,485 cases worth Sh1.160 trillion—equivalent to nearly a third of the national budget. Judges resolved 12,812 cases during this period, unlocking Sh779 billion for the economy.

In 2024, the court recorded 3,186 new cases, the highest number in five years, while 2023 saw the largest cumulative case value of Sh643.3 billion.

The report highlights that the surge in cases has overwhelmed the division, which manages commercial disputes, tax appeals, insolvencies, bankruptcies, and arbitration cases.

“The total number of filed cases has increased from 2,159 in 2019 to 3,186 in 2024, indicating a growing workload,” the report states, citing commercial suits and tax appeals as the dominant categories.

It notes that staffing shortages have further strained the Judiciary’s capacity.

Recently, a plan by the Judicial Service Commission (JSC) to recruit additional judges in 2025 was shelved due to government austerity measures following the 2024 anti-Finance Bill protests.

Efforts to promote Court Annexed Mediation, introduced in 2016, have also yet to gain full traction. By early January 2025, only 818 cases had been referred to mediation, with Sh5.095 billion released into the economy since its inception.

“It is advisable for litigants to utilise court-annexed mediation as a means to expedite the release of the Sh389 billion currently tied up in court. This will have a positive impact on the economy as commerce will be encouraged to take root. The cost of mediation is also minimal for the parties, making it an affordable exercise,” the report notes.

The Judiciary has also resolved to expand mediation efforts and increase judicial capacity to ease the backlog.

However, without additional resources, unlocking the Sh389 billion tied up in court remains a challenge for the country’s economy.

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