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Browse Acts ↓(1) This Act may be cited as the Insolvency Act. (2) The provisions of this Act shall come into operation on such date as the Cabinet Secretary may, by notice in the Gazette, appoint and different dates may be appointed for different provisions. (3) Notwithstanding subsection (2), any provision that…
(1) In this Act, unless the context otherwise requires— "affairs" in relation to a natural person or company, includes a business carried on by the person or company and any dealings conducted in the course of the business; "amount" means an amount of money; "apply to" includes apply in relation to;…
(1) The objects of this Act are— (a) to establish and provide for the operation of a framework for the efficient and equitable administration of the estates of insolvent natural persons and unincorporated entities comprising natural persons, and the assets of insolvent companies and other bodies cor…
(1) A person acts as an insolvency practitioner in relation to a natural person if the person acts— (a) as the bankruptcy trustee or interim trustee in respect of the person's property or as permanent or interim trustee in the sequestration of the person's estate; (b) as a trustee under a deed that…
(1) A person who, not being the holder of an authorisation, purports to act as an insolvency practitioner in relation to a company or a natural person commits an offence and is on conviction liable to a fine not exceeding five million shillings. (2) This section does not apply to the Official Receiv…
(1) Subject to subsection (2) and (3), a person is qualified to act as an insolvency practitioner only if the person— (a) satisfies the requirements of the insolvency regulations with respect to education, practical training and experience; (b) is a member of a professional body recognised under sec…
(1) The Cabinet Secretary shall, by notice published in the Gazette, declare one or more professional bodies to be recognised professional bodies for the purposes of this Act. (2) The Cabinet Secretary may declare a professional body to be a recognised professional body only if it— (a) regulates the…
(1) A person who wishes to act as an insolvency practitioner may apply to the Official Receiver for an authorisation to act as an insolvency practitioner for the purposes of this Act. (2) The Official Receiver shall refuse an application under subsection (1) that— (a) is not made in the manner presc…
(1) As soon as practicable after receiving an application made under section 8, the Official shall either grant or refuse the application. (2) The Official Receiver shall grant an application made under section 8 if satisfied that— (a) the application complies with the requirements of that section;…
(1) The Official Receiver may revoke an authorisation granted under subsection (1) if satisfied that the holder of the authorisation— (a) is no longer qualified to act as an insolvency practitioner; (b) is no longer a fit and proper person to act as an insolvency practitioner; (c) has been found gui…
(1) A person whose application for an authorisation to act as an insolvency practitioner is refused may appeal to the Court against the refusal. (2) A person whose authorisation to act as insolvency practitioner is revoked otherwise than at the person's request or with the person's consent may appea…
In this Part— "bankruptcy application" means an application for a debtor to be adjudged bankrupt; "bankruptcy order", in relation to a debtor, means an order of the Court adjudging the debtor bankrupt; "creditor's application" means a bankruptcy application made in accordance with section 17 by one…
(1) Bankruptcy occurs when the Court makes an order in respect of a debtor adjudging the debtor bankrupt— (a) on the application of one or more creditors of the debtor made in accordance with section 17; or (b) on the application of the debtor made in accordance with section 32. (2) If a person is a…
A debtor who is insolvent may as an alternative to bankruptcy— (a) enter into a voluntary arrangement in accordance with Division I of Part IV; (b) make a proposal to creditors in accordance with Division 2 of Part IV; (c) pay creditors in instalments under a summary instalment order under Division…
(1) A bankruptcy application may be made to the Court in accordance with the provisions of this Part— (a) by one of the person's creditors or jointly by two or more one of them; (b) by the debtor; or (c) by the supervisor of any person who is for the time being bound by a voluntary arrangement propo…
(1) A bankruptcy application may not be withdrawn without the approval of the Court. (2) The Court has a general power to dismiss a bankruptcy application or to stay proceedings on such an application on the ground that the Court is of the opinion that a requirement of this Part or the insolvency re…
(1) One or more creditors of a debtor may make an application to the Court for a bankruptcy order to be made in respect of the debtor in relation to a debt or debts owed by the debtor to the creditor or creditors. (2) Such an application may be made in relation to a debt or debts owed by the debtor…
(1) A debt that is the debt, or one of the debts, in respect of which a creditor's application is made need not be unsecured if either— (a) the application contains a statement by the person having the right to enforce the security that the creditor is willing, in the event of a bankruptcy order bei…
If a creditor's application is made wholly or partly in respect of a debt that is the subject of a statutory demand, the application may be made before the end of the twenty-one day period referred to in section 17 if— (a) there is a serious possibility that the debtor's property, or the value of an…
(1) The Court may not make a bankruptcy order on a creditor's application unless it is satisfied that the debt, or one of the debts, in respect of which the application was made is either— (a) a debt which, having been payable at the date of the application or having since become payable, has been n…
(1) A creditor who makes an application for a bankruptcy order in respect of a debtor may not issue an execution process against the debtor in respect of the property of the debtor to recover a debt on which the application is based. (2) If the creditor has already issued the execution process, the…
(1) After a creditor's application has been made, the debtor or any creditor may apply to the relevant court for an order stopping the issue or continuance by any other creditor of an execution process against the debtor in respect of the property of the debtor. (2) On the hearing of an application…
(1) This section applies if an execution process has been issued by a court other than the High Court. (2) If it is proved to the issuing court that an application for a bankruptcy order in respect of the debtor has been made to the High Court, that court may either— (a) stay the execution process o…
The restrictions in sections 21 to 23 on issuing or continuing an execution process do not apply if an application is withdrawn or dismissed.
(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 debtor's…
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 ba…
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 that…
(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 may,…