Section 879 of The Companies Act No. 17 of 2015: Charges existing on property acquired
(1) This section applies to a company that acquires property already subject to a charge of a kind that would, if it had been created by the company after the acquisition of the property, have been required to be registered under this Part.
(2) A company to which this section applies shall, before the deadline for registration, lodge with the Registrar for registration—
(a) the particulars of the charge prescribed by the regulations; and
(b) a certified copy of the document (if any) by which the charge is created or evidenced.
(3) A charge of the kind referred to in subsection (1) may be registered on the application of any person who claims to have an interest in it.
(4) If such a charge is registered on the application of a person other than the company, the person is entitled to recover from the company the amount of any fees properly paid by the person to the Registrar for registration.
(5) If a company fails to comply with subsection (2)—
(a) the company; and
(b) each officer of the company who is in default, commit an offence and on conviction are each liable to a fine not exceeding one million shillings.
(6) Subsection (5) does not apply if the charge has been registered on the application of a person other than the company.
(7) If, after the company or any of its officers is convicted of an offence under subsection (5), the company continues to fail to lodge the prescribed particulars of the charge with the Registrar, 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 one hundred thousand shillings for each such offence.
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