Can I claim compensation after a refund for faulty goods?

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Taking a refund for faulty goods does not automatically mean giving up your right to claim compensation for loss caused by the fault. Getting the purchase price back and recovering other losses are separate matters. However, a refund does not guarantee that any further claim will succeed.

What does the refund cover?

A refund returns the money paid for the goods. It may not cover the other loss the faulty goods caused. For example, if spoiled pet food leads to a vet bill, returning the price of the food does not necessarily settle the question of that bill.

The Sale of Goods Act (Cap 31) and the Consumer Protection Act, 2012 provide remedies for breach of the seller’s implied terms, including goods of acceptable quality and fitness for purpose. Implied terms are obligations that apply to the sale even if the seller did not say them aloud.

Alongside a refund, a buyer may claim damages. This means money claimed as compensation for losses that naturally flow from the defect. It does not mean every expense mentioned after a purchase must be paid by the seller.

You still need to prove the loss

In the spoiled pet food example, the buyer must still prove that the feed was faulty and that it caused the vet bill. Receiving a refund does not, by itself, establish those points.

Keep the purchase receipt, evidence of the condition of the goods, messages exchanged with the seller and records of the loss being claimed. These can help explain what was bought, what went wrong and how the claimed expense relates to it.

Check what you agree to

There is a difference between accepting a refund and agreeing to accept it in full and final settlement. That phrase means the payment is intended to settle the whole claim, rather than just return the purchase price. A clear agreement on that basis could bar a further claim.

Whether a claim has been given up depends on the facts. Before accepting settlement wording, read it carefully, ask the seller to put the terms in writing and seek clarification if the scope is unclear. Keep a copy of what was agreed.

📚 Ouko v Riungu & 5 others [2026] KEHC 16823 (KLR)

Entertainment and general information, not legal advice. For advice on your own situation, speak to an advocate.

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