Act and Laws in Kenya

Sections 168 to 173 also apply when the bankruptcy trustee has been appointed as interim trustee in respect of all or part of a debtor's property under section 36 and, for that purpose, references in sections 168 to 173 to the bankrupt are to be read with as if they were references to the debtor.

(1) A person is not entitled as against the bankruptcy trustee to withhold possession of, or claim a lien over— (a) a document that belongs to the bankrupt; or (b) the bankrupt's business records. (2) However, a person may claim as a preferential creditor under paragraph 3(1)(f) of the...

(1) A person who, without reasonable excuse— (a) fails to comply with a summons attend the public examination of a bankrupt as required by section 168(1); (b) fails without reasonable excuse to produce a document that the person is required to produce as required by section...

(1) At any time before an absolute order for a bankrupt's discharge is made— (a) the bankruptcy trustee; or if a ordinary resolution has been passed at a creditor's meeting seeking the public examination of the bankrupt before the Court, any of the creditors concerned, may make an application to...

(1) As soon as practicable after the Court has made an order under section 177, the bankruptcy trustee shall serve a copy of the order on the bankrupt. (2) At least seven days before the date fixed for holding the examination, the bankruptcy trustee shall— (a) publish a notice advertising the...

Before the public examination of a bankrupt before the Court begins, the bankruptcy trustee shall lodge with the Court a report on— (a) the bankrupt's estate; (b) the bankrupt's conduct; and (c) all other matters of which the Court should be informed.

(1) At the time and date fixed by the Court for holding the public examination of a bankrupt, the bankrupt shall attend the examination, and may be examined as to the bankrupt's conduct, affairs and property. (2) At the examination, the following persons may examine the bankrupt— (a) the bankruptcy...

(1) On the holding of a public examination of a bankrupt before the Court, the Court shall ensure that a written record is made of the examination. (2) The Court shall also ensure that the record of the examination— (a) is read over to the bankrupt; and (b) is made available for inspection at all...

(1) The public examination of a bankrupt ends when the Court makes an order declaring that the examination is ended. (2) The Court may make an order declaring that the examination has ended only if it is satisfied that the bankrupt's conduct, affairs and property have been sufficiently investigated...

If the bankrupt does not appear for the examination at the appointed time and has no reasonable excuse— (a) the Court may, either on the bankruptcy trustee's application or its own initiative, by warrant, have the bankrupt arrested and brought before the Court for examination; and (b) the Court...

(1) A bankrupt is entitled to be paid such expenses for attending a public examination before the Court as are prescribed by the insolvency regulations for the purposes of this section. (2) It the relevant expenses have not been paid or tendered to the bankrupt, the bankrupt person is not obliged...

(1) If authorised by the Court, the bankruptcy trustee or a person appointed by that trustee may exercise the powers specified in subsection (2) in relation to a company with which the bankrupt is associated or a partnership of which the bankrupt is a member. (2) The powers referred to in...

(1) A person (including the bankrupt) who is examined or questioned at a public examination of a bankrupt shall answer all questions put to the person in relation to the bankrupt's conduct, affairs and property to the extent that the person is able to do so. (2) A person is not excused from...

(1) A person who, without reasonable excuse— (a) fails to attend an examination as required by section 180(1); (b) fails to deliver a document as required under section 180(4)(a); (c) fails to answer a question as required under section 180(4)(b); or (d) in purporting to answer such a question,...

(1) A person (including the bankrupt) who is examined or questioned at a public examination of a bankrupt is entitled to be represented by an advocate. (2) Such a person may be questioned by the bankrupt's advocate, and any answers given by the person form part of the examination.

If a bankrupt is a party to a contract, the bankruptcy trustee may— (a) continue the contract, subject to the terms of the contract and all relevant rules of law; or (b) disclaim the contract if it is onerous property for the purposes of section 118.

(1) This section applies if the other party to a contract to which the bankrupt is a party, in accordance with a term of the contract, terminates the contract in consequence of the bankruptcy. (2) Irrespective of what the contract provides, the bankruptcy trustee may recover such amount from the...

(1) This section applies to a payment of money or a delivery of property to a person who is adjudged bankrupt, whether the payment or delivery is made— (a) on the order of the person; or (b) from the person to an assignee or to the order of an assignee. (2) The payment or delivery is a good...

If the bankrupt is jointly liable under a contract with another person, that other person may sue and be sued on the contract without the bankrupt being joined as a party to the proceeding.

(1) The bankruptcy trustee may recover money paid by a bankrupt to the bankrupt's advocate for costs in obtaining a bankruptcy order, except for those (if any) prescribed for the purpose of this section by the insolvency regulations. (2) Subsection (1) applies whether the relevant payment was made...

(1) This Division applies to the following irregular transactions by the bankrupt before the bankruptcy commenced— (a) an insolvent transaction; (b) an insolvent charge; (c) an insolvent gift; (d) a transaction at undervalue; (e) a contribution by the bankrupt to the property of another...

For the purposes of this Division, a two year period or a six months period referred to in this Division can be extended— (a) in the case of a bankruptcy order made on a creditor's application, by the period between the time when the application was served on the bankrupt and the time when the...

A transaction by a bankrupt can be cancelled on the bankruptcy trustee's initiative if it— (a) is an insolvent transaction; and (b) was made within two years immediately before the bankruptcy commenced.

(1) For the purposes of section 196, a transaction is an insolvent transaction by a bankrupt if it— (a) is entered into or made at a time when the bankrupt is unable to pay the bankrupt's debts; and (b) enables a creditor to receive more towards satisfaction of a debt by the bankrupt than the...

For the purposes of section 196, a transaction that was entered into within the six months before a bankrupt is adjudged bankrupt is presumed, until the contrary is proved, to have been made at a time when the bankrupt is unable to pay the bankrupt's debts.

(1) This section applies if a series of transactions made for commercial purposes forms an integral part of a continuing business relationship (such as a running account) between a bankrupt and a creditor in circumstances in which, during the course of the relationship, the level of the bankrupt's...

A charge over any property of a bankrupt can be cancelled on the bankruptcy trustee's initiative if— (a) the charge was created within the two years immediately before the bankruptcy commenced; and (b) immediately after the charge was given, the bankrupt was unable to pay the bankrupt's due...

(1) A charge may not be cancelled under section 200 if it secures— (a) money actually advanced or paid; (b) the actual price or value vof property sold or transferred; or (c) any other valuable consideration given, in good faith by the secured creditor to the bankrupt at the time when, or at any...

A bankrupt who gave a charge within the six months immediately preceding the commencement of the bankruptcy is presumed, until the contrary is proved, to have been unable to pay the bankrupt's debts immediately after the charge was created.

(1) If, in relation to property purchased by a bankrupt, the bankrupt has given to the seller a charge over the property within the two years immediately preceding the bankruptcy, section 200 does not affect the charge to the extent that it secures unpaid purchase money, but only if the charge was...