Insolvency Act Cap 53 in Kenya

A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.

If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly void, for the whole of the debt; or (b) if the security is partly void, to the extent that the...

A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that commencement.

(1) If a bankrupt is, at the commencement of the bankruptcy, a shareholder of a company (not being a company that is in liquidation), the company may prove for— (a) the amount of unpaid calls on the bankrupt made before that commencement in respect of the bankrupt's shares; and (b) the value of...

If, in relation to a bankruptcy— (a) a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and (b) the person discharges the debt or liability (before or after that commencement), the person is entitled to the benefit to subsection...

In this Division, "preferential claim" means a claim in respect of a debt listed in paragraphs 2, 3 or 4 of the Second Schedule.

(1) For the purpose of this Act, a bankrupt's preferential debts are those specified in paragraphs 2 to 4 of the Second Schedule and are payable as provided by that Schedule in priority to the bankrupt's other debts. (2) Debts of the bankrupt that are neither preferential debts nor debts to which...

(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who was the bankrupt's spouse at the commencement of the bankruptcy and so applies even if the person was not the bankrupt's spouse at the time the credit was provided. (2) Those debts— (a) rank in priority...

If a payment has been made to a person on account of a preferential creditor out of money advanced by another person for that purpose, the other person has, in the bankruptcy, the same right of priority in respect of the money so advanced as the preferential creditor would have if the payment had...

(1) If a landlord or other person has distrained on goods or effects of the bankrupt during the thirty day period before the bankruptcy commenced, the preferential claims are a first charge on the goods or effects so distrained, or the proceeds from their sale. (2) However, if any money is paid to...

If a bankrupt is a partner of a firm, any creditor to whom the bankrupt is indebted jointly with the other partners of the firm is not entitled to receive money obtained from the realisation of the bankrupt's separate property until the claims of all of the other creditors have been paid in full.

(1) On realising the bankrupt's estate or so much of it as can be realised without needlessly protracting the bankruptcy trusteeship, the bankruptcy trustee shall give notice either— (a) of an intention to declare a final dividend; or (b) that no dividend, or further dividend, will be...

(1) Subject to this section, if— (a) it appears to the bankruptcy trustee that the administration of the bankrupt's estate in accordance with this Division is for practical purposes complete; and (b) the bankruptcy trustee is not the Official Receiver, the bankruptcy trustee shall summon a final...

(1) A bankrupt is automatically discharged from bankruptcy three years after the bankrupt lodged a statement of the bankrupt's financial position in accordance with section 50, but may apply to be discharged earlier. (2) However, a bankrupt is not automatically discharged if— (a) the bankruptcy...

The automatic discharge of the bankrupt has the same effect as if the Court made an order for the bankrupt's discharge.

(1) The bankruptcy trustee, the Official Receiver (if not the bankruptcy trustee) or, with the approval of the Court, a creditor may object to a bankrupt's automatic discharge. (2) An objection has no effect unless it is made in the manner and form prescribed by the insolvency regulations.

(1) An objection to the automatic discharge of the bankrupt may be withdrawn in the manner prescribed by the insolvency regulations. (2) A bankrupt is automatically discharged on the withdrawal of the objection if— (a) the three-year period referred to in section 254(1) has elapsed; (b) there is...

(1) A bankrupt may at any time apply to the Court for an order of discharge from bankruptcy. (2) However, if the Court has previously refused an application by the bankrupt for a discharge, and has specified the earliest date when the bankrupt may again apply, the bankrupt may not make another...

(1) The bankruptcy trustee shall summon the bankrupt to be publicly examined before the Court concerning the bankrupt's discharge if— (a) the bankruptcy trustee or a creditor has objected to the bankrupt's automatic discharge and the objection has not been withdrawn; (b) the bankrupt is due for...

(1) The bankruptcy trustee shall prepare a report and lodge it with the Court when— (a) the bankrupt has applied under section 258 for a discharge; or (b) the bankruptcy trustee has summoned the bankrupt to be examined in accordance with section 259. (2) The bankruptcy trustee shall include in...

(1) A creditor shall give to the bankruptcy trustee and the bankrupt a notice that complies with subsection (2) if the creditor intends to oppose the bankrupt's discharge on a ground that is not mentioned in the bankruptcy trustee's report. (2) A notice complies with this subsection if...

(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt; (b) discharge the bankrupt on conditions; (c) discharge the bankrupt but suspend the order for a specified period;...

(1) On making an order of discharge or at any earlier time, the Court may prohibit the bankrupt from doing after discharge all or any of the following without the Court's approval— (a) entering into, carrying on, or taking part in the management or control of any business or class of...

(1) The bankruptcy trustee or a creditor of the bankrupt 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 quashing the discharge of a bankrupt at any time before— (a) in the case of...

(1) The quashing of a discharge does not affect the rights or remedies that a person other than the bankrupt would have had if the discharge had not been quashed. (2) It property acquired by the bankrupt after discharge is owned by the bankrupt at the date when the order quashing the discharge is...

(1) A bankrupt may apply to the Court for an absolute discharge even though the bankrupt is not able to comply with any or all of the conditions of the bankrupt's discharge. (2) The Court may discharge the bankrupt absolutely if satisfied that the bankrupt's inability to comply with the conditions...

(1) On being discharged, a bankrupt is released from all debts provable in the bankruptcy except those listed in subsection (2). (2) The debts from which the bankrupt is not released are the following— (a) any debt or liability incurred by fraud or fraudulent breach of trust to which the bankrupt...

A discharge of a bankrupt from bankruptcy is conclusive evidence of the bankruptcy and of the validity of the proceedings in course of the bankruptcy.

The discharge of a bankrupt does not release a person who, at the commencement of the bankruptcy, was — (a) a business partner of the bankrupt; (b) a co-trustee with the bankrupt; (c) jointly bound or had made any contract with the bankrupt; or (d) a guarantor or in the nature of a guarantor of...

(1) A person who is discharged from bankruptcy shall assist the bankruptcy trustee, as required by the Court or the bankruptcy trustee, in the realisation and distribution of the property of the person that is vested in that trustee. (2) lf a person who has been discharged from bankruptcy fails to...