Act and Laws in Kenya

(1) The Court may make a bankruptcy order in respect of the debtor if the creditor has complied with section 7. (2) The Court may refuse to adjudge a debtor bankrupt if— (a) the applicant creditor has not satisfied the requirements specified in section 17; (b) the debtor is able to pay the...

The Court may, at any time, stay an application by a creditor for bankruptcy on such terms, and for such period, as the Court considers appropriate.

(1) If there is more than one bankruptcy application in respect of a debtor, and one application has been stayed by an order of the Court, the Court may, if it believes there is a good reason to do so, make a bankruptcy order in respect of the application that has not been stayed. (2) On making a...

If an application made by a creditor for a bankruptcy order relates to more than one debtor, the Court may refuse to make such an order in respect of one or some of the debtors without affecting the application made in relation to the remaining debtor or debtors.

(1) This section applies if a debtor— (a) has made a disposition of all, or substantially all, of the property of the debtor to a trustee for the benefit of the creditors of the debtor; (b) has made a proposal under Division I of Part IV; or (c) has applied for a summary instalment order under...

(1) This section applies if a debtor appears in opposition to a creditor's application and the debtor claims that the debtor— (a) does not owe a specified debt to the creditor; or (b) owes a specified debt to the creditor, but the debt is less than the prescribed bankruptcy level. (2) The Court...

In the case of a creditor's application, the Court may substitute another creditor for the creditor making the application if— (a) the applicant creditor has not proceeded with due diligence, or at the hearing of the application offers no evidence; and (b) the debtor owes the other creditor two...

(1) A debtor may make an application to the Court for an order adjudging the debtor bankrupt only on the grounds that the debtor is unable to pay the debtor's debts. (2) The Court may decline to deal with such an application if it is not accompanied by a statement of the debtor's financial position...

(1) Subject to section 34, on the hearing of a debtor's application, the Court may not make a bankruptcy order if it appears to the Court— (a) that if a bankruptcy order were made the total amount of the applicant's debts, so far as unsecured, would be less than the small bankruptcies...

(1) The insolvency practitioner appointed under section 33 shall— (a) inquire into the debtor's financial affairs; and (b) within such period as the Court may specify, submit a report to the Court stating whether the debtor is willing to make a proposal for a voluntary arrangement in accordance...

Two or more debtors, who are partners in a business partnership, may make a joint application under section 32.

(1) After a creditor's application has been made, the creditor or any other creditor of the debtor may apply to the Court for an order for the appointment of an authorised insolvency practitioner as interim trustee in respect of all or a specified part of the debtor’s property. (2) The Court may...

(1) After the appointment of an interim trustee under section 36, the Court may, on an application made under subsection (2), make additional orders under that section. (2) An application for the purpose of subsection (1) made by a creditor or the interim trustee or, with the approval of the Court,...

(1) As soon as practicable after the appointment of an interim trustee, the trustee shall publish a notice of the appointment— (a) in one or more newspapers circulating in Kenya; and (b) in such other publication as may be prescribed by the insolvency regulations for the purposes of this...

(1) A creditor of the debtor may not issue an execution process under section 23 after notice of the appointment of the interim trustee has been published. (2) A creditor may not continue an execution process already issued before notice of the appointment of the interim trustee has been...

If execution is stayed under section 39, sections 109, 110, 111, 112, 113, 114 and 116 apply as if the order staying execution were a bankruptcy order.

A bankruptcy under this Act commences on the date and at the time when a bankruptcy order is made in respect of the debtor.

(1) On making a bankruptcy order, the Court shall record the date and time when the order was made. (2) If the debtor is adjudged bankrupt on the application of the debtor, the Official Receiver shall record on the application the date and time when the debtor made the application.

As soon as practicable after the Court has made a bankruptcy order in respect of a debtor, the Registrar of the Court shall forward a copy of the order to the Official Receiver.

(1) As soon as practicable after receiving a copy of a bankruptcy order, the Official Receiver shall nominate a qualified person to be bankruptcy trustee in respect of the debtor's property. (2) In this subsection (1), "qualified person" means the Official Receiver or an authorised insolvency...

If a doubt arises as to whether an act was done, or a transaction entered into or made, before or after the time when a bankruptcy commenced, it is to be presumed, until the contrary is proved, that the act was done, or the transaction was entered into or made, after that time.

A bankruptcy order becomes binding on the bankrupt and all other persons— (a) on the expiry of the time within which an appeal may be lodged against the order; or (b) if an appeal is lodged in respect of the order within that period and the Court later confirms the order or the appeal is later...

(1) The Official Receiver shall establish and maintain a public register of undischarged and discharged bankrupts. (2) The Official Receiver shall maintain the register in accordance with Division 2 of Part XIl.

(1) When a bankruptcy order commences— (a) all proceedings to recover the bankrupt's debts are stayed; and (b) the property of the bankrupt (whether in or outside Kenya), and the powers that the bankrupt could have exercised in respect of that property for the bankrupt's own benefit, vest in the...

(1) Within thirty days after receiving notice of a bankruptcy order, the Official Receiver shall serve on the bankrupt a notice— (a) stating that a bankruptcy order has been made in respect of the bankrupt; (b) requiring the bankrupt to lodge with the Official Receiver a statement setting out the...

(1) Within fourteen days after being served with the notice in accordance with section 49 (or within such extended period not exceeding sixty days as the Official Receiver may allow), the bankrupt shall lodge with the Official Receiver a statement of the bankrupt's financial position setting out—...

(1) A person who in writing claims to be a creditor of the bankrupt is entitled, at all reasonable times (either personally or through an agent— (a) to inspect the statement of the bankrupt's financial position; and (b) to take a copy it or of part of it. (2) A person who falsely claims to be a...

(1) The Official Receiver shall, subject to subsection (5), convene the first meeting of the bankrupt's creditors within the prescribed period, unless the Official Receiver decides, in accordance with section 53, not to hold the meeting. (2) The Official Receiver shall convene the meeting by giving...

(1) The Official Receiver may decide not to convene a first creditors' meeting if the Official Receiver— (a) has sent to each creditor named in the statement of the bankrupt's financial position, and to any other creditor known to the Official Receiver, a notice that complies with section 54;...

(1) The Official Receiver shall send the following documents with the notice of the first meeting of creditors— (a) a summary of the bankrupt's statement of assets and liabilities; (b) extracts from, or a summary of, the bankrupt's explanation of the causes of the bankruptcy; and (c) any comments...