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Imagine paying KES 1.5 million to a software developer in Westlands to build your new e-commerce app. The launch goes well, users are signing up, and you are ready to pitch to venture capitalists in Nairobi. Then, you…

Imagine paying KES 1.5 million to a software developer in Westlands to build your new e-commerce app. The launch goes well, users are signing up, and you are ready to pitch to venture capitalists in Nairobi. Then, you ask the developer for the raw source code to host it on your own server.
He refuses. He demands another KES 500,000 or a 15% equity stake in your company. If you do not pay, he threatens to shut down the app.
Can he legally do this?
The short answer is yes. If you did not sign the right agreements, you do not own the code. Understanding Intellectual Property ownership Kenya is the difference between building a valuable business and owning an expensive, unusable digital shell.
In Kenya, software is protected as a “literary work” under Section 22 of the Copyright Act, Cap 130. When you hire an independent freelance developer, they are the author of that work.
Under the current Section 31 of the Copyright Act Kenya, there is a “commissioned works” rule. This rule states that if you commission someone to create a work, the copyright is deemed to be transferred to you, unless you have an agreement to the contrary.
However, relying on this default rule is highly dangerous for three main reasons:
To protect your investment, you need a robust, written software development contract before writing a single line of code.
Never rely on default statutory rules; the upcoming changes to Kenyan copyright laws mean that without an express written transfer, the developer owns your app’s code.
Many founders think that signing a generic App developer contract downloaded from the internet is enough. It is not. Software is rarely built entirely from scratch.
Developers use:
If your contract simply says “the client owns all intellectual property,” it is legally unenforceable. Your developer cannot transfer ownership of open-source libraries or third-party APIs because they do not own them.
A well-drafted contract must separate the deliverables into two categories:
Without this distinction, a developer can claim that because your app uses their pre-existing proprietary login module, you cannot modify or transfer the app without their permission.

Your contract must separate background code from newly created code to prevent developers from claiming your entire app contains their proprietary tools.
To fully secure your rights, your legal counsel must draft a comprehensive IP assignment agreement Kenya. This is a distinct legal document (or a robust clause within your main contract) that transfers all rights, titles, and interests in the software from the developer to your startup.
Under Section 33 of the Copyright Act Kenya, any assignment of copyright must be in writing and signed by the assignor (the developer). A verbal agreement, a Slack message, or a WhatsApp confirmation will not stand up in a Kenyan court.
Your IP assignment must also address three critical issues:
Without these specific clauses, you may own the code but find yourself legally blocked from hiring a new developer to modify it.
A standard service agreement does not automatically assign ownership; you must execute a separate, written IP assignment to legally secure your code.
Kenyan courts have dealt with a number of intellectual property disputes that are useful warning signs for startups. In Samson Ngengi v Kenya Revenue Authority, the dispute arose from a geospatial tax-mapping system known as GEOCRIS and highlighted the risks that can arise where employee-created innovations are not clearly documented and ownership is left ambiguous. A public discussion of the matter is available here, and KRA’s own case digest also refers to the dispute here.
A more direct caution for commissioned work appears in Adventis Ltd v Superior Homes (K) Ltd. The key point is that where a creator produces copyright-protected work, such as architectural drawings, a client should not assume ownership without a clear written assignment or licence, and non-payment or lack of formal transfer can generate infringement risk. I was not able to verify a stable public eKLR link for this case from the material available to me here, so the citation should be checked against the official record before publication.
Another important dispute is Riara Group of Schools v Lucas Kamau, which involved software created by a teacher and raised the question whether the work belonged to the employer or to the individual creator. A commentary on the case is available here, and the judgment record is available on Kenya Law here.
The real lesson for startups is simple: courts generally look for proof, not assumptions. If you do not have clear written terms showing who commissioned the work, who paid for it, and who owns or may use the resulting intellectual property, you are inviting a dispute.
Kenyan IP disputes such as Samson Ngengi v KRA and Riara Group of Schools v Lucas Kamau show how ownership problems arise when employee-created or commissioned works are not documented clearly, while Adventis Ltd v Superior Homes (K) Ltd underscores the need for an express written transfer or license when dealing with copyright works.

Kenyan courts strictly enforce employment and contract terms, meaning a lack of documentation will tie your startup up in costly, multi-year litigation.
If you are currently working with a freelance developer or software agency in Nairobi, use this legal checklist to protect your business:
Taking these steps ensures you remain in complete control of your digital assets and can confidently present your startup to potential investors.
Implementing a clear contractual checklist and registering your software with KECOBO is the ultimate way to de-risk your startup’s technology stack.
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General information, not legal adviceThis article explains the law in general terms and does not create an advocate–client relationship. For advice on your situation, .
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