Section 498 of The Companies Act No. 17 of 2015: Procedure on transfer being lodged
(1) As soon as practicable (and in any case not later than two months) after the date on which a transfer of a company’s shares or debentures is lodged with it, the company shall either— (a) register the transfer; or
(b) if it refuses to register the transfer, give the transferee a notice of the refusal, together with a statement specifying the reasons for the refusal.
(2) If the company refuses to register the transfer, it shall provide the transferee with such further information about the reasons for the refusal as the transferee may reasonably request.
(3) The information required to be provided under subsection (2) does not include copies of minutes of meetings of directors.
(4) This section does not apply in relation to the transmission of shares or debentures by operation of law.
(5) If a company fails to comply with a requirement of this section, the company, and each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding five hundred thousand shillings.
(6) If, after a company or any of its officers is convicted of an offence under subsection (5), the company continues to fail to comply with the relevant requirement, the company, and each officer of the company who is in default, commit a further offence on each day on which the failure continues and on conviction are each liable to a fine not exceeding fifty thousand shillings for each such offence
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