KENYAN LEGISLATION

Acts and laws in Kenya

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Section 2 of Partnerships Act 16 of 2012: Interpretation

(1) In this Act, unless the context otherwise requires— “address”, means— (a) for an individual, the usual residential and postal address of that individual; (b) for a company or a limited partnership, means the registered office of the company or limited partnership; and (c) for a partnership which…

Section 4 of Partnerships Act 16 of 2012: Liability of partners

(1) Each partner in a partnership has unlimited liability. (2) To be a limited partnership, a partnership shall have— (a) one or more general partners, each with unlimited liability; and (b) one or more registered limited partners, each with limited liability.

Section 6 of Partnerships Act 16 of 2012: When default rule applies

(1) Where a default rule applies in relation to a partnership, it shall be treated as a term of the partnership agreement. (2) The application of a default rule in relation to a partnership may be modified or excluded— (a) in accordance with the terms of the partnership agreement; or (b) with the ag…

Section 10 of Partnerships Act 16 of 2012: Duty of good faith

(1) A partner has a duty to act in good faith towards— (a) the partnership; and (b) the other partners in the partnership, in relation to all matters affecting the partnership. (2) A partner shall— (a) keep each of the other partners or their legal representatives informed of all matters affecting t…

Section 12 of Partnerships Act 16 of 2012: Share of profits and losses

(1) A partner is entitled to share equally in the profits of the partnership and is liable to contribute equally towards the losses incurred by the partnership in equal proportions. (2) A partner is not entitled to a share in the profits of the partnership, and is not liable to contribute to any los…

Section 14 of Partnerships Act 16 of 2012: Capital contribution by partner

(1) A partner may only— (a) contribute capital to the partnership; or (b) vary the amount of the partner’s capital contribution to the partnership, where all partners in the partnership agree. (2) A partner who contributes to the capital of a partnership is not entitled to interest on the contributi…

Section 16 of Partnerships Act 16 of 2012: Accounting and partnership records

(1) Every partner shall have the responsibility to ensure that— (a) accounting records of transactions affecting the partnership in which he is involved are properly kept; and (b) the records are, on request, made available to the partnership or to any partner. (2) A partner shall have the duty to c…

Section 20 of Partnerships Act 16 of 2012: Execution of deeds

(1) A document is validly executed by a partnership as a deed under this Act if it is— (a) executed by at least two partners, each with the authority of all the partners to execute on behalf of the partnership; (b) expressed to be executed on behalf of the partnership; and (c) delivered as a deed. (…

Section 22 of Partnerships Act 16 of 2012: Unlimited liability of partners

(1) A partner who has unlimited liability is personally liable for the whole amount of any obligation incurred by the partnership while he is a partner where— (a) a judgment, order or arbitral award has been made against the partnership in the same or earlier proceedings, establishing the amount of…

Section 26 of Partnerships Act 16 of 2012: Admission of new partners

(1) A person may become a partner in an existing partnership with the consent of all existing partners. (2) The consent referred to in subsection (1) may either be express in writing or inferred from the conduct of the existing partners, and in particular, from the fact that the person who is admitt…

Section 27 of Partnerships Act 16 of 2012: Ceasing to be a partner

A person shall cease to be a partner in a partnership if— (a) the person dies; (b) the person is expelled as a partner by his co-partners under the provisions of section 29; (c) the partnership is dissolved; (d) the Court makes an order under section 44(1)(a) or (b) to remove the person as a partner…