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How Lawyers and Law Firms Charge Fees in Kenya: Legal Fees Billing Methods
Standard Advocate's billing methods include:
1. Flat fee billing
The firm charges a set price for the entire scope of work provided, regardless of timing; this method is often used for quick legal processes, such as preparing wills or tax documents.
2. Retainer billing
The firm requires a client to pay one lump sum upfront before work begins, from which an attorney’s hourly rate is deducted throughout the client’s case.
3. Contingency fee billing
The firm receives a percentage of the damages (or settlement check) awarded to the client; this method is typically used in civil suits, such as motor vehicle accidents and medical malpractice. However, in Kenya, the legal system does not allow for contingency fees, where an advocate takes on a case prior to receiving payment. According to the Advocates Remuneration Order of 1962, specific minimum fees are set for various legal tasks that advocates undertake.
4. Hourly rate billing
The firm charges for the exact amount of time worked, by the hour, to provide the client with legal services.
Make sure you have a written agreement about fees. This agreement should cover how you'll be billed and what activities you'll be charged for. Writing this down is important. It helps you understand what work will be done and how much it will cost you. The agreement should explain everything about the lawyer-client relationship. This includes what work will be done, who will work on your case, how much it will cost, and when you need to pay.
Having everything written down helps make sure payments are made on time and reduces arguments between you and the lawyer. It's especially useful for agreements where the payment depends on the case's outcome, like in cases of personal injury or workers' compensation. These agreements say how much the lawyer gets paid if the case is successful. Importantly, they also say that if the case isn't successful, the client doesn't have to pay the lawyer anything.
Who Can Fund Your Case?
As for the financing of litigation, there isn't a specific law dictating the methods of funding. In the case of third-party funding, such as a bank, microfinance institution or shylock, which might be interested in financing the case proceedings in exchange for a share in the award's proceeds, the law's applicability remains ambiguous.
Insurance companies are the best institutions to fund your cases. While insurance companies in Kenya do not currently offer litigation funding, there is no explicit legal prohibition preventing them from providing such services.
It's noteworthy that, in the United States, both banks and insurance companies fund litigation due to the allowance of contingency fees in most states. However, this is not the case in Kenya's legal framework.