- Section 1 of Insolvency Act CAP 53: Short title and commencement
(1) This Act may be cited as the Insolvency Act.
(2) The provisions of this Act shall come into operation on such date as the Cabinet Secretary may, by notice in the Gazette, appoint and different dates may be appointed for different provisions.
(3) Notwithstanding subsection (2), any provision...
- Section 2 of Insolvency Act CAP 53: Interpretation
(1) In this Act, unless the context otherwise requires—
"affairs" in relation to a natural person or company, includes a business carried on by the person or company and any dealings conducted in the course of the business;
"amount" means an amount of money;
"apply to" includes apply in relation...
- Section 3 of Insolvency Act CAP 53: Objects and application of this Act
(1) The objects of this Act are—
(a) to establish and provide for the operation of a framework for the efficient and equitable administration of the estates of insolvent natural persons and unincorporated entities comprising natural persons, and the assets of insolvent companies and other bodies...
- Section 4 of Insolvency Act CAP 53: Circumstances in which person acts as insolvency practitioner
(1) A person acts as an insolvency practitioner in relation to a natural person if the person acts—
(a) as the bankruptcy trustee or interim trustee in respect of the person's property or as permanent or interim trustee in the sequestration of the person's estate;
(b) as a trustee under a deed...
- Section 5 of Insolvency Act CAP 53: Consequences of acting without authorisation
(1) A person who, not being the holder of an authorisation, purports to act as an insolvency practitioner in relation to a company or a natural person commits an offence and is on conviction liable to a fine not exceeding five million shillings.
(2) This section does not apply to the Official...
- Section 6 of Insolvency Act CAP 53: Qualifications for person to act as insolvency practitioners
(1) Subject to subsection (2) and (3), a person is qualified to act as an insolvency practitioner only if the person—
(a) satisfies the requirements of the insolvency regulations with respect to education, practical training and experience;
(b) is a member of a professional body recognised under...
- Section 7 of Insolvency Act CAP 53: Duty of Cabinet Secretary to declare certain bodies to be recognised as professional bodies for the purposes of this Act
(1) The Cabinet Secretary shall, by notice published in the Gazette, declare one or more professional bodies to be recognised professional bodies for the purposes of this Act.
(2) The Cabinet Secretary may declare a professional body to be a recognised professional body only if it—
(a) regulates...
- Section 8 of Insolvency Act CAP 53: Application to act as insolvency practitioner
(1) A person who wishes to act as an insolvency practitioner may apply to the Official Receiver for an authorisation to act as an insolvency practitioner for the purposes of this Act.
(2) The Official Receiver shall refuse an application under subsection (1) that—
(a) is not made in the manner...
- Section 9 of Insolvency Act CAP 53: Grant or refusal of authorisation
(1) As soon as practicable after receiving an application made under section 8, the Official shall either grant or refuse the application.
(2) The Official Receiver shall grant an application made under section 8 if satisfied that—
(a) the application complies with the requirements of that...
- Section 10 of Insolvency Act CAP 53: Power of Official Receiver to revoke authorisation
(1) The Official Receiver may revoke an authorisation granted under subsection (1) if satisfied that the holder of the authorisation—
(a) is no longer qualified to act as an insolvency practitioner;
(b) is no longer a fit and proper person to act as an insolvency practitioner;
(c) has been found...
- Section 11 of Insolvency Act CAP 53: Right to appeal against decisions of Official Receiver
(1) A person whose application for an authorisation to act as an insolvency practitioner is refused may appeal to the Court against the refusal.
(2) A person whose authorisation to act as insolvency practitioner is revoked otherwise than at the person's request or with the person's consent may...
- Section 12 of Insolvency Act CAP 53: Interpretation: Part III
In this Part—
"bankruptcy application" means an application for a debtor to be adjudged bankrupt;
"bankruptcy order", in relation to a debtor, means an order of the Court adjudging the debtor bankrupt;
"creditor's application" means a bankruptcy application made in accordance with section 17 by...
- Section 13 of Insolvency Act CAP 53: Nature of bankruptcy
(1) Bankruptcy occurs when the Court makes an order in respect of a debtor adjudging the debtor bankrupt—
(a) on the application of one or more creditors of the debtor made in accordance with section 17; or
(b) on the application of the debtor made in accordance with section 32.
(2) If a person...
- Section 14 of Insolvency Act CAP 53: Alternatives to bankruptcy
A debtor who is insolvent may as an alternative to bankruptcy—
(a) enter into a voluntary arrangement in accordance with Division I of Part IV;
(b) make a proposal to creditors in accordance with Division 2 of Part IV;
(c) pay creditors in instalments under a summary instalment order under...
- Section 15 of Insolvency Act CAP 53: Who is entitled to make a bankruptcy application
(1) A bankruptcy application may be made to the Court in accordance with the provisions of this Part—
(a) by one of the person's creditors or jointly by two or more one of them;
(b) by the debtor; or
(c) by the supervisor of any person who is for the time being bound by a voluntary arrangement...
- Section 16 of Insolvency Act CAP 53: Proceedings on a bankruptcy application
(1) A bankruptcy application may not be withdrawn without the approval of the Court.
(2) The Court has a general power to dismiss a bankruptcy application or to stay proceedings on such an application on the ground that the Court is of the opinion that a requirement of this Part or the insolvency...
- Section 17 of Insolvency Act CAP 53: Creditor may apply for bankruptcy order in respect of debtor
(1) One or more creditors of a debtor may make an application to the Court for a bankruptcy order to be made in respect of the debtor in relation to a debt or debts owed by the debtor to the creditor or creditors.
(2) Such an application may be made in relation to a debt or debts owed by the debtor...
- Section 18 of Insolvency Act CAP 53: When court can make bankruptcy order on application by secured creditor
(1) A debt that is the debt, or one of the debts, in respect of which a creditor's application is made need not be unsecured if either—
(a) the application contains a statement by the person having the right to enforce the security that the creditor is willing, in the event of a bankruptcy order...
- Section 19 of Insolvency Act CAP 53: Expedited creditor's application
If a creditor's application is made wholly or partly in respect of a debt that is the subject of a statutory demand, the application may be made before the end of the twenty-one day period referred to in section
17 if—
(a) there is a serious possibility that the debtor's property, or the value of...
- Section 20 of Insolvency Act CAP 53: Proceedings on creditor's application
(1) The Court may not make a bankruptcy order on a creditor's application unless it is satisfied that the debt, or one of the debts, in respect of which the application was made is either—
(a) a debt which, having been payable at the date of the application or having since become payable, has been...
- Section 21 of Insolvency Act CAP 53: Creditor's execution process not to be issued or continued
(1) A creditor who makes an application for a bankruptcy order in respect of a debtor may not issue an execution process against the debtor in respect of the property of the debtor to recover a debt on which the application is based.
(2) If the creditor has already issued the execution process, the...
- Section 22 of Insolvency Act CAP 53: Power of relevant court to stay execution processes by other creditors or allow them on terms
(1) After a creditor's application has been made, the debtor or any creditor may apply to the relevant court for an order stopping the issue or continuance by any other creditor of an execution process against the debtor in respect of the property of the debtor.
(2) On the hearing of an application...
- Section 23 of Insolvency Act CAP 53: Execution process issued by other court
(1) This section applies if an execution process has been issued by a court other than the High Court.
(2) If it is proved to the issuing court that an application for a bankruptcy order in respect of the debtor has been made to the High Court, that court may either—
(a) stay the execution process...
- Section 24 of Insolvency Act CAP 53: No restriction on execution process if bankruptcy application withdrawn or dismissed
The restrictions in sections 21 to 23 on issuing or continuing an execution process do not apply if an application is withdrawn or dismissed.
- Section 25 of Insolvency Act CAP 53: When court may adjudge debtor bankrupt
(1) The Court may make a bankruptcy order in respect of the debtor if the creditor has complied with section 7.
(2) The Court may refuse to adjudge a debtor bankrupt if—
(a) the applicant creditor has not satisfied the requirements specified in section 17;
(b) the debtor is able to pay the...
- Section 26 of Insolvency Act CAP 53: When the Court may stay application
The Court may, at any time, stay an application by a creditor for bankruptcy on such terms, and for such period, as the Court considers appropriate.
- Section 27 of Insolvency Act CAP 53: Orders if more than one application
(1) If there is more than one bankruptcy application in respect of a debtor, and one application has been stayed by an order of the Court, the Court may, if it believes there is a good reason to do so, make a bankruptcy order in respect of the application that has not been stayed.
(2) On making a...
- Section 28 of Insolvency Act CAP 53: Orders if there is more than one order
If an application made by a creditor for a bankruptcy order relates to more than one debtor, the Court may refuse to make such an order in respect of one or some of the debtors without affecting the application made in relation to the remaining debtor or debtors.
- Section 29 of Insolvency Act CAP 53: Power of the Court to make order staying bankruptcy application, etc.
(1) This section applies if a debtor—
(a) has made a disposition of all, or substantially all, of the property of the debtor to a trustee for the benefit of the creditors of the debtor;
(b) has made a proposal under Division I of Part IV; or
(c) has applied for a summary instalment order under...
- Section 30 of Insolvency Act CAP 53: Court may stay application while underlying debt is determined
(1) This section applies if a debtor appears in opposition to a creditor's application and the debtor claims that the debtor—
(a) does not owe a specified debt to the creditor; or
(b) owes a specified debt to the creditor, but the debt is less than the prescribed bankruptcy level.
(2) The Court...