Mediation vs Litigation: Why Commercial Mediation is the Smarter Choice

Disputes are an inevitable part of doing business. Whether it’s a disagreement over contracts, unpaid debts, partnership fallouts, or service-level issues—how you choose to resolve these disputes can significantly impact your company’s finances, relationships, and reputation.

In Kenya, more and more businesses are turning to commercial mediation as an alternative to the traditional court process. At Meridian Recoveries, we offer professional dispute resolution services in Kenya, helping companies resolve issues faster, more affordably, and with less hostility than through litigation.

In this article, we’ll compare mediation and litigation, explore their pros and cons, and show you why commercial mediation is often the smarter, more strategic choice.

What Is Commercial Mediation?

Commercial mediation is a voluntary, confidential process in which an independent third party (the mediator) helps disputing parties reach a mutually acceptable agreement. Unlike a judge or arbitrator, the mediator doesn’t impose a decision—instead, they facilitate constructive communication so the parties can find common ground.

In Kenya, mediation is part of the wider Alternative Dispute Resolution (ADR) framework and is recognized under the Civil Procedure Act (Amendment) 2010, the Mediation (Pilot Project) Rules, and supported by the Mediation Accreditation Committee under the Judiciary.

What Is Litigation?

Litigation refers to the formal legal process where disputes are resolved in a court of law. It involves filing lawsuits, attending hearings, presenting evidence, and receiving a judgment from a judge or magistrate.

While litigation is sometimes necessary, especially in criminal cases or where legal precedent is needed, it’s often costly, time-consuming, and emotionally draining, particularly for commercial disputes that could be resolved outside court.

Key Differences Between Mediation and Litigation