The Companies Act in Kenya governs the formation, operation and regulation of companies. Shareholder agreements are private contracts entered into by shareholders of a company to regulate their relationships, rights and obligations within the company. It is important to note that both the Companies Act and shareholder agreements can coexist, as long as these shareholder agreements do not contradict the provisions of the Companies Act.

It is important to align your shareholder agreement with the provisions of the Companies Act to avoid any legal discrepancies. The Act stipulates the duties and responsibilities of directors, disclosure of interests and other corporate governance practices.

The Companies Act does not directly address shareholder agreements but it provides a framework for regulation of companies and shreholders.
1. The Act sets out the rights and powers of shareholders.
2. It also provides for the winding up of companies.
3. It sets out the duties of directors.
A well-drafted shareholder agreement should be consistent with the provisions of the Act.

It is always important to consult a lawyer who is conversant with the Companies Act to assist you draft a shareholder agreement.

Shareholders' agreements are agreements between shareholders in company, as the name suggests. They provide rules to govern the running of a company. In Kenya, the Companies Act,2015 sets out the effects of the act towards shareholder agreements. The shareholders agreement should be aligned with the act. The company act affects the shareholders agreement by setting out rights and powers of shareholders. It also provides for alterable provisions which automatically applies to a company unless they are amended and therefore, to comply with the Act, a company has to compare each of the provisions of it's shareholders agreement with the alterable provisions of the Act.