Insolvency Act Cap 53 in Kenya

(1) Under section 212, the bankruptcy trustee may recover from a party to a transaction with the bankrupt an amount calculated in accordance with the following formula: A = B - C where— A is the amount to be calculated; B is the value that the party received from the bankrupt under the...

(1) The bankruptcy trustee may make an application to the Court for an order directing the recipient of a contribution by the bankrupt to the recipient's property to pay the value of the contribution to the bankruptcy trustee. (2) On the hearing on an application made under subsection (1), the...

(1) The Court may— (a) ascertain the value of the bankrupt's contribution for the purposes of section 212; and (b) order the recipient to pay an amount equal to that value to the bankruptcy trustee. (2) In subsection (1)(a), the bankrupt's contribution includes any payments for legal expenses,...

(1) The bankruptcy trustee shall apply— (a) the money repaid under section 212 by the recipient of a contribution by the bankrupt to property; or (b) the proceeds of sale of that property, by taking the steps specified in subsection (2) in the order specified in that subsection. (2) The steps to...

(1) For the purposes of this Division, a creditor's claim is a document that a creditor submits to the bankruptcy trustee for the purpose of proving the debt. (2) A debt is proved when it is allowed by the bankruptcy trustee.

(1) For the purpose of this Division, a provable debt is a debt or liability that the bankrupt owes— (a) at the commencement of the bankruptcy; or (b) after that commencement but before discharge, because of an obligation incurred by the bankrupt before that commencement. (2) A fine, penalty or...

(1) A creditor (including a creditor who has a preferential claim) who wishes to claim in the bankruptcy shall submit a creditor's claim to the bankruptcy trustee before the deadline for submitting claims. (2) The bankruptcy trustee may accept such a claim only if it is in the form prescribed by...

(1) The bankruptcy trustee shall examine each creditor's claim and the grounds of the debt, unless of the opinion that no dividend will be paid to creditors. (2) As soon as practicable after examining a claim, the bankruptcy trustee shall do one or more of the following— (a) wholly or partly allow...

As soon as practicable after rejecting a creditor's claim, or a part of it, the bankruptcy trustee shall give the creditor a notice rejecting the claim or part and specifying the grounds for the rejection.

(1) The bankruptcy trustee may summon for examination, and examine (on oath or otherwise), any of the following persons— (a) a person who has submitted a creditor's claim; (b) a person who has made a declaration or statement as part of a creditor's claim; (c) a person who is capable of giving...

(1) The bankrupt or any creditor may give the bankruptcy trustee notice to allow or reject a creditor's claim. (2) It the bankruptcy trustee has not made a decision allowing or rejecting the creditor's claim within fourteen days after receiving the claim, the creditor or the bankrupt may apply to...

(1) The Official Receiver, the bankrupt or a creditor may make an application to the Court for an order under subsection (2) on the ground that the bankruptcy trustee improperly allowed a creditor's claim. (2) On the hearing of an application made under subsection (1), the Court may make an order...

(1)A creditor whose claim has been rejected by the bankruptcy trustee may apply to the Court to make an order under subsection (3). (2)An application can be made only within twenty-one days after the creditor receives the bankruptcy trustee's notice of rejection of the claim, or within such...

(1) This section applies to an application made under section 221, 222 or 223. (2) If the applicant is not the bankruptcy trustee, the applicant shall serve a copy of the application on the bankruptcy trustee as a party to the proceeding. (3) If the applicant is not the bankrupt or a creditor who...

On the hearing of an application made under section 221, 222 or 223, the Court may, if it considers it appropriate to do so, make an order— (a) directing specified costs of a creditor to be added to the creditor's claim; (b) directing specified costs of a party to the proceeding to be paid out of...

(1) If the property of a bankrupt is subject to a charge, the creditor who holds the charge may choose an option specified in subsection (2). (2) The options are as follows— (a) Option 1: to realise the property by having it sold (but only if the creditor is entitled to do so under the terms of...

(1) If property of a bankrupt is subject to a security, the bankruptcy trustee may make an application to the Court for an order under subsection (2). (2) On the hearing of an application made under subsection (1), the Court may make an order enabling the bankruptcy trustee to dispose of the...

(1) A creditor who realises property that is subject to a charge may prove as an unsecured creditor for any balance due after deducting the net amount realised. (2) However, subsection (1) does not apply if the bankruptcy trustee has accepted a valuation and creditor's claim under section...

This section applies if a creditor who holds a charge or security right over a bankrupt's property has the property valued and seeks to prove as an unsecured creditor for the balance due after deducting the amount of the valuation. The creditor shall ensure that the valuation and the claim for the...

(1) A person who— (a) makes, or authorises the making of, a claim under section 229 (1) knowing it to be false or misleading; or (b) omits, or authorises the omission of, any matter from a claim under section 229 (1) knowing that the omission will make the claim false or misleading, commits an...

(1) If a creditor who holds a charge or security right over property of a bankrupt values the property and seeks to prove for the balance due, the bankruptcy trustee shall— (a) accept the valuation and the creditor's claim; or (b) reject the valuation and creditor's claim in whole or in...

(1) This section applies to a creditor who has surrendered a charge under option 3 in section 226(2) or is taken to have surrendered the charge under section 226(4). (2) The creditor may, with the approval of the Court or the bankruptcy trustee and subject to the terms that the Court or that...

If a creditor's claim is subject to a contingency or is for damages, or if, for some other reason, the amount of the claim is uncertain, the bankruptcy trustee may estimate the amount of the claim.

(1) If the bankruptcy trustee— (a) chooses not to estimate the amount of a creditor's claim in accordance with section 233; or (b) has estimated the amount of the claim but the creditor is dissatisfied with the estimate, the creditor may apply to the Court to make an order under subsection...

(1) A creditor's claim that would, but for the bankruptcy, be payable six months or more after the commencement of the bankruptcy is taken to be a claim for the present value of the debt. (2) The present value of the debt is to be calculated by deducting interest at the rate prescribed by the...

If there have been mutual credits, mutual debts or other mutual dealings between a bankrupt and another person, the bankruptcy trustee shall— (a) take an account of what is due from the one party to the other in respect of those credits, debts or dealings; (b) set-off an amount due from one party...

A creditor may claim interest up to the date on which the bankruptcy commences— (a) in the case of contract debt interest, at the rate specified in the contract that provides for interest on the debt; or (b) in the case of judgment debt interest, at the rate payable on the debt.

(1) The bankruptcy trustee shall pay interest on all allowed creditors' claims at the prescribed rate if surplus assets remain after the bankruptcy trustee has paid the claims. (2) The bankruptcy trustee shall pay the interest from and including the date on which the bankruptcy commences to the...

(1) If there is a surplus after the bankruptcy trustee has paid post-bankruptcy interest as provided by section 238, the bankruptcy trustee shall pay additional interest on allowed proofs for a contract debt or judgment debt, by making up— (a) in the case of a contract debt, the difference between...

For the purposes of sections 238 and 239, the prescribed rate of interest is the rate for the time being prescribed by the insolvency regulations for the purposes of those sections.