In Kenya, oral contracts are binding. There is however some exceptions which include the following:
1. Contracts involving disposition of land or an interest in land.
2. Contracts of guarantee or suretyship. Agreeements where one part agrees to answer for the debt or default of another must be in writing.
3. Lease contracts
4. Insurance contracts
5. Specialty contracts e.g. hire purchase contracts
6. Contracts for the sale of goods of the value of Ksh. 1,000 or more

If your friend is backing out of the deal, you can take legal action. Ensure that you can provide some evidence such as:

1. Witness testimony
2. Emails or other written communications between you and your friend
3. Any other evidence that can support your claim

Oral agreements which have been made in good faith are legally binding as long as you are able to substantiate them in court.

Oral agreement is a type of contract made through spoken words.They are legally valid provided that the basic foundations of a binding contract are in place.There are several exceptions to oral agreement which include:lease agreements, insurance agreements, hire-purchase and sale of goods contracts among others.
Oral contracts present more difficulties than written contracts because they aren't clearly presented and therefore are difficult to prove.The enforceability of oral agreements depends on jurisdiction as well as the type of deal and therefore it is advisable for all parties to sign a written document and seek professional legal advice. Oral agreements are recommended for simple and not complex deals.