Capacity to contract refers to a person's legal ability to enter into a binding contract. In Kenyan law, the capacity to contract is primarily defined under the Law of Contract Act of Kenya. The law prohibits one to enter into a contract on the following grounds:
i. Mental Capacity: Individuals who are of unsound mind or do not have the mental capacity to understand the nature and consequences of the contract may lack the capacity to contract.
ii. Age: Minors, individuals who have not reached the age of majority (18 years old in Kenya), are generally considered to lack the capacity to contract.
iii. Insolvency: Individuals who are declared insolvent or bankrupt may have limited capacity to contract
iv. Intoxication: Contracts entered into under the influence of drugs or alcohol may be voidable if the intoxicated person lacked the capacity to understand the contract's terms.

Capacity to contract refers to the ability of a party to understand the contract and be bound by it. Under Kenyan law, there are groups of people who lack the capacity to contract. They include minors (unless it involves contracts for necessities e.g. food and clothing) and mentally incapacitated people. These groups lack the capacity to enter into contract. It is very crucial to ensure that the individuals you are entering into contact with do not fall under the mentioned groups so that the contract can be deemed valid.

Capacity to contract means that a party has the legal ability to enter into a contract. It is determined by the age of majority or the mental status of the individual. In Kenya, there are exceptions to this and include;
1. Age.
In general, the minors, anyone under the age of 18 years lacks the capacity to enter into a contract.
2. Mental incapacitation.
If a person is not able to understand his or her responsibilities and rights under the agreement, then they lack the mental capacity to form a contract.
3. Intoxication.
Someone who is under the influence of drugs or alcohol is generally believed to lack capacity to contract.