- Section 25 of Insolvency Act CAP 53: When court may adjudge debtor bankrupt
(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...
- Section 26 of Insolvency Act CAP 53: When the Court may stay application
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.
- Section 27 of Insolvency Act CAP 53: Orders if more than one application
(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...
- Section 28 of Insolvency Act CAP 53: Orders if there is more than one order
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.
- Section 29 of Insolvency Act CAP 53: Power of the Court to make order staying bankruptcy application, etc.
(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...
- Section 30 of Insolvency Act CAP 53: Court may stay application while underlying debt is determined
(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...
- Section 31 of Insolvency Act CAP 53: Court may allow one creditor to be substituted for another
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...
- Section 32 of Insolvency Act CAP 53: When debtor may make application for bankruptcy order
(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...
- Section 33 of Insolvency Act CAP 53: Appointment of insolvency practitioner by the Court
(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...
- Section 34 of Insolvency Act CAP 53: Action on report of insolvency practitioner
(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...
- Section 35 of Insolvency Act CAP 53: Joint application can be made by two or more debtors
Two or more debtors, who are partners in a business partnership, may make a joint application under section 32.
- Section 36 of Insolvency Act CAP 53: Appointment of interim trustee of debtor's property on application of creditor
(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...
- Section 37 of Insolvency Act CAP 53: Additional orders after appointment of interim trustee
(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,...
- Section 38 of Insolvency Act CAP 53: Notice of appointment of interim trustee to be published
(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...
- Section 39 of Insolvency Act CAP 53: Execution process not to be issued after notice of appointment of trustee is published
(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...
- Section 40 of Insolvency Act CAP 53: Effect of staying execution
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.
- Section 41 of Insolvency Act CAP 53: Bankruptcy commences on making of 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.
- Section 42 of Insolvency Act CAP 53: Date and time of bankruptcy order to be recorded
(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.
- Section 43 of Insolvency Act CAP 53: Registrar of the Court to notify trustee of bankruptcy order
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.
- Section 44 of Insolvency Act CAP 53: Official Receiver to nominate bankruptcy trustee
(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...
- Section 45 of Insolvency Act CAP 53: Presumption that act was done, or transaction was entered into or made, after bankruptcy
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.
- Section 46 of Insolvency Act CAP 53: Bankruptcy order to be binding on all persons
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...
- Section 47 of Insolvency Act CAP 53: Official Receiver to maintain public register of undischarged and discharged bankrupts
(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.
- Section 48 of Insolvency Act CAP 53: What happens or is to happen on and after bankruptcy commences
(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...
- Section 49 of Insolvency Act CAP 53: Official Receiver to serve notice on bankrupt requiring the bankrupt to lodge statement of the bankrupt's financial position
(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...
- Section 50 of Insolvency Act CAP 53: Bankrupt to lodge statement of financial position with bankruptcy trustee
(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—...
- Section 51 of Insolvency Act CAP 53: Creditors entitled to inspect and take copies of statement of bankrupt's financial position
(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...
- Section 52 of Insolvency Act CAP 53: Official Receiver to convene first meeting of creditors
(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...
- Section 53 of Insolvency Act CAP 53: Circumstances in which Official Receiver may decide not to convene first meeting of creditors
(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;...
- Section 54 of Insolvency Act CAP 53: Documents to be sent with notice of meeting
(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...