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• Section 241 - Creditor required to deduct trade discounts
  

  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.

• Section 242 - Secured creditor can prove as unsecured creditor if security is void or partly void
  

  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...

• Section 243 - Judgment creditor may prove for costs
  

  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...

• Section 244 - Company may prove for unpaid calls
  

  (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...

• Section 245 - When guarantor for bankrupt may prove claim
  

  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...

• Section 246 - Interpretation: Division 21
  

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

• Section 247 - Preferential debts: priority of debts
  

  (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...

• Section 248 - Priority ranking of debts owed to bankrupt's spouse
  

  (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...

• Section 249 - Person who makes payment on account of preferential creditor to be subrogated to the rights of that creditor
  

  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...

• Section 250 - Priority given to landlord or other person who distrains on goods and effects of bankrupt
  

  (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...

• Section 251 - Creditors to have priority over creditors of joint bankrupt
  

  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...

• Section 252 - Final distribution of bankrupt's estate
  

  (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...

• Section 253 - Final meeting of creditors
  

  (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;...

• Section 254 - Automatic discharge three years after bankrupt lodges statement of financial position
  

  (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...

• Section 255 - Effect of automatic discharge
  

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

• Section 256 - Right of creditor to object to automatic 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...

• Section 257 - Objection can be withdrawn
  

  (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...

• Section 258 - Bankrupt may apply for early discharge
  

  (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...

• Section 259 - When bankrupt is to be publicly examined before the Court concerning discharge
  

  (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...

• Section 260 - Bankruptcy trustee to lodge report with the Court in specified circumstances
  

  (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...

• Section 261 - When creditor required to give notice of opposition to discharge
  

  (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...

• Section 262 - Power of the Court to grant or refuse discharge
  

  (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...

• Section 263 - Court may restrict bankrupt from engaging in business after discharge
  

  (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,...

• Section 264 - Court may quash order discharging bankrupt
  

  (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...

• Section 265 - Effect of quashing order discharging bankrupt from bankruptcy
  

  (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...

• Section 266 - Bankrupt may apply for absolute discharge on ground that conditions of discharge are too onerous
  

  (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...

• Section 267 - Debts from which bankrupt is released on discharge
  

  (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...

• Section 268 - Discharge to be conclusive evidence of bankruptcy and the validity of bankruptcy proceedings
  

  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.

• Section 269 - Discharge not to release partners of bankrupt and others
  

  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...

• Section 270 - Discharged bankrupt to assist bankruptcy trustee
  

  (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...

• Section 271 - Official Receiver to record in public register decision of the Court refusing to discharge bankrupt, etc.
  

  lf the Court refuses to discharge a bankrupt or makes an order discharging the bankrupt but suspends the discharge, the Official Receiver shall record that information in the relevant public register...

• Section 272 - Court may annul bankruptcy order in certain circumstance
  

  (1) The Official Receiver or any other person claiming to have a legitimate interest in the matter may make an application to the Court for an order under subsection (2). (2) On the hearing of an...

• Section 273 - When Official Receiver may annul bankruptcy order
  

  (1) The Official Receiver may annul a bankruptcy order on any of the grounds specified in subsection (2), but only if the order was made on a debtor's application. (2) The grounds for annulment by...

• Section 274 - Effect of annulment of bankruptcy order
  

  (1) On annulment of a bankruptcy order, all property of the bankrupt vested in the Official Receiver on bankruptcy and not sold or otherwise disposed of by the Official Receiver revests in the...

• Section 275 - Interpretation: Division 24
  

  In this Division— "confirming resolution" means a special resolution passed by a bankrupt's creditors in accordance with section 276 confirming a preliminary resolution; "preliminary resolution"...

• Section 276 - Creditors may accept composition by passing preliminary resolution
  

  (1) The creditors of a bankrupt may accept a composition in satisfaction of the debts due to them from the bankrupt by passing a special resolution that contains the terms of the composition. (2) If...

• Section 277 - Composition not effective unless approved by confirming resolution
  

  (1) A composition is ineffective only when creditors have passed a special resolution confirming preliminary resolution. (2) In the confirming resolution, the creditors may vary the terms of the...

• Section 278 - Compositions with members of partnership
  

  (1) If members of a partnership have been adjudged bankrupt, the joint creditors and each class of separate creditors can make separate compositions. (2) lf subsection (1) applies, the majorities of...

• Section 279 - Composition not binding unless approved by the Court
  

  (1) A composition is not binding until it is approved by the Court. (2) When approved by the Court, a composition binds all the creditors in respect of provable debts due to them by the...

• Section 280 - Procedure for court approval of composition
  

  (1) The bankrupt or the Official Receiver may apply to the Court to approve the composition. (2) The Court may hear the application only if satisfied that each creditor who has submitted a claim in...

• Section 281 - Deed of composition to be executed
  

  (1) As soon as practicable after the Court has approved a composition— (a) the bankrupt and the Official Receiver shall execute a deed of composition for putting the proposal into effect;...

• Section 282 - Effect of deed of composition
  

  When the Court has confirmed the deed and quashed the bankruptcy order— (a) the deed binds all the creditors in all respects as if they had each executed the deed; and (b) subject to the provisions...

• Section 283 - Bankrupt remains liable for unpaid balances of certain debts
  

  (1) A bankrupt who makes a composition with the bankrupt's creditors remains liable for the unpaid balance of a debt if— (a) the bankrupt, by means of fraud— (i) incurred or increased the debt;...

• Section 284 - Deadlines for steps to approve composition and execute deed
  

  (1) The deadlines for steps to approve the composition and execute the deed are as follows— (a) the confirming resolution has to have been passed within one month after the preliminary resolution is...

• Section 285 - Procedure following approval of composition by the Court
  

  (1) The Registrar of the Court shall, after recording the deed of composition— (a) endorse on the deed that it has been recorded in the Court registry; and (b) if requested to do so by the Official...

• Section 286 - How composition may be enforced
  

  (1) On the application of any person aggrieved by a failure to pay an amount payable in accordance with a composition approved by the Court, the Court may order that the failure to pay be...

• Section 287 - Jurisdiction of the Court in relation to composition and deed of composition
  

  (1) After the preliminary resolution has been passed, the Court continues to have exclusive jurisdiction in relation to the composition and the deed of composition, and their administration. (2) On...

• Section 288 - Law and practice in bankruptcy to apply to deed of composition
  

  The Court shall decide a question arising under a deed of composition according to the law and practice of bankruptcy, in so far as that law and practice is relevant.

• Section 289 - Offences in relation to debts
  

  (1) A bankrupt commits an offence if the bankrupt did not, when contracting a debt, have the capacity to pay the debt when it fell due for payment, as well as to pay all the bankrupt's other...

• Section 290 - Offences in relation to property
  

  (1) A bankrupt commits an offence if the bankrupt— (a) conceals, or removes from Kenya, any part of the bankrupt's property— (i) during the two months immediately preceding the date on which an...