The president assented to the insolvency act 2015 on 11 september 2015. Bankruptcy and insolvency act chapter6 bankruptcy and insolvency act arrangement of sections part i preliminary section 1. The act is a reproduction of the english sale of goods act 1893 which was made part of the kenya law by the colonial administration in kenya on 1st october 1931. This act is largely identical to the english bankruptcy act of 1914 and the bankruptcy amendment act of 1926. Section 31 a provides that if in kenya or elsewhere a debtor makes a conveyance or assignment of his property to a trustee or trustees for the benefit of his creditors. Bankruptcy act with its variations is a stock short title used for legislation in australia, hong kong, malaysia, the republic of ireland, the united kingdom and the united states relating to bankruptcy. An act to make provision for the administration in bankruptcy of the estates of debtors. An act to provide for receivership, administration, liquidation, arrangements, bankruptcy, the regulation of insolvency practitioners and cross border insolvency. Short title this act may be cited as the bankruptcy act. The insolvency act 2015 ministry of industry, trade and. The bankruptcy of a debtor, whether it takes place on the debtors own petition or upon that of a creditor or creditors, shall be deemed to have relation back to, and to commence at the time of the act of bankruptcy being committed on which a receiving order is made against him or, if the bankrupt is proved to have committed more acts of. Bankruptcy trustee to bank money and power to invest surplus. Published by the national council for law reporting with the authority of.
Jan 03, 2018 insolvency law in kenya is strictly provided for by the insolvency act 2015 supported in detail by the insolvency regulations. The salient features of the kenya insolvency act, 2015. Insolvency act, 2011, 2011 uganda legal information institute. Insolvency notes kenya free download as powerpoint presentation. The act consolidates for the first time the laws relating to insolvency in kenya previously contained in the bankruptcy act and the companies act.
Orders under part viii or viiiab of the family law act 1975 60. The bill for an act with this short title will usually have been known as a bankruptcy bill during its passage through parliament bankruptcy acts may be a generic name either for. Chapter 53 bankruptcy an act of parliament relating to bankruptcy arrangement of sections 1 short title. Introduction the kenyan insolvency bill 2012 is an act of parliament to. Bankruptcy act 1966 federal register of legislation. Vesting of property upon bankruptcygeneral rule 58a. The bankruptcy act of kenya was inherited from the english bankruptcy act of 1926. Part ii incorporation of companies and matters incidental thereto memorandum of association 4. Laws of kenya bankruptcy act chapter 53 revised edition 2012 2010 published by the national council for law reporting with the authority of the attorneygeneral. This act has provided a single harmonized regime for personal bankruptcies and insolvencies for body corporates. Kenya introduces a new companies act and the insolvency. Bankruptcy and insolvency act 1836 kb act current to 20200421 and last amended on 20191101. Vesting of property upon bankruptcyeffect of orders in force under the proceeds of crime law 59.
The bankruptcy and insol vency act, 2007 a rra n g e m e n t o f s e c tio n s part i p reliminary section 1. Nov 09, 2017 winding up of companies, liquidation, dissolution, deregistration in kenya. The republic of kenya shall be a multiparty democratic state. Section 31 a provides that if in kenya or elsewhere a debtor makes a conveyance or assignment of his property to a trustee or trustees for the benefit of his creditors generally, he commits an act of bankruptcy. Bankruptcy and insolvency act 1836 kb act current to. A voluntary bankruptcy is initiated by the debtor and an involuntary bankruptcy is initiated by a creditor. Bankruptcy act 1931 uganda legal information institute. Holdsworth on historical development basically the law of bankruptcy has a long history and only a. When i have signed this bill before me, we will have made the first fundamental change in our coinage in 173 years. On 11th september 2015 kenya formally enacted the insolvency act was acquiesced and the act was implemented in the country when the relevant cabinet of secretary in this case the attorney general officially notified in the kenya gazette hannigan, 2015. The salient features of the kenya insolvency act, 2015 from a. Whereas, under the act of march 9, 1933, all proclamations heretofore or hereafter issued by the president pursuant to the authority enforced by section 5b of the act of october 6, 1917, as amended, are approved and confirmed. Pdf notes on bankruptcy and insolvency law for accounting. The public seal of kenya shall be such device as may be prescribed by or under an act of parliament.
This act may be cited as the banking act interpretation 2. An act to consolidate the law relating to bankruptcy. It aims to provide for and regulate the bankruptcy or liquidation of natural persons, incorporated and unincorporated bodies to enable their affairs to be managed. On that same day, congress passed the following statute. Bankruptcy 11 laws of malaysia act 360 bankruptcy act 1967 an act relating to the law of bankruptcy. Article 4 1 a petition for commencement of bankruptcy proceedings under the provisions of this act may be filed only if the debtor, who is an individual, has a. Of particular significance, the act creates a legal framework to govern the administration of companies as an alternative to. Print email download the insolvency act 2015 in pdf 5mb prev. The insolvency act, no 18 of 2015 the act, which became fully operational through legal notice no. An act to reduce the term of bankruptcy and bankruptcy payment orders in certain circumstances.
Once the debts of a bankrupt individual or of the company are ascertained, they will be paid out to creditors. B e it enacted by the kings most excellent majesty, by and with the advice and consent of the lords spiritual and temporal, and commons, in this present parliament assembled. This is a departure from what obtained in prior where there was the bankruptcy act for personal bankruptcy. The legal basis for bankruptcy application by a debtor is under section 32 of the insolvency act no 18 of 2015 and the insolvency regulations of 2016. A debtor commits an act of bankruptcy in each of the following cases. Bankruptcy the bankruptcy proceedings in kenya are governed by the kenya bankruptcy act cap 53. Winding up in kenya company liquidation dissolution. In kenya bankruptcy is governed by the bankruptcy act 1938, cap 53 of the laws of kenya. Commissioas and fees to be paid into consoiidated fund. Winding up under insolvency act, 2015 the lex jotter. The second schedule to the act sets out preferential debts in order of their priority. Mar 22, 2016 winding up under insolvency act, 2015 members voluntary liquidation under the insolvency act, 2015 the insolvency bill was assented to by the president on 11 th september 2015 and will come into operation on such date as the cabinet secretary may direct by notice in the kenya gazette.
Winding up of companies in kenya or liquidation is a formal insolvency procedure in which a company is brought to an end. Mar 18, 2018 a bankruptcy may be voluntary or involuntary. Before the commencement of the act, the majority of statutory provisions addressing insolvency law in kenya were found in the companies act cap 486 laws of kenya and the bankruptcy act cap 53. This act is based on the english bankruptcy act, 1914. Bankruptcy trustee may assign right to sue under this act. To constitute an act of bankruptcy hearing there must be a.
Filing for bankruptcy in kenya under the insolvency act. Part iii receiving orders, interim receivers, secured creditors and receivers petition for receiving order 4. Acts of bankruptcy part iii r eceiving o rders, interim r eceivers, secured c reditors and r eceivers petition for receiving order 5. The first step in filing for bankruptcy is where either the creditor or debtor present a bankruptcy petition. An act of parliament to consolidate and amend the law relating to auctioneers, to provide for the licensing and regulations of the business and practice of auctioneers, and for connected purposes act no. Conveying or assigning all property to a trustee for the benefit of his creditors generally. The bankruptcy of a debtor, whether it takes place on the debtors own petition or upon that of a creditor, shall be deemed to have relation back to, and to commence at, the time of the act of bankruptcy being committed on which a receiving order is made against him or her, or, if the bankrupt is proved to have committed more acts of. If the creditor makes the bankruptcy petition, they must have prove of an act of bankruptcy occurring within the past three months.
Definition section 3 1 of the act defines a sale of goods as a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money. Ed 257 at the signing of the coinage act on july 23, 1965, lyndon b. Bankruptcy is a proceeding by which, when a debtor cannot pay his debts or discharge his liabilities or the persons to whom he owes money or has incurred liabilities cannot obtain satisfaction of their. In the year 2015 insolvency act, kenya began the process of changing the countrys corporate insolvency and individual person bankruptcy.
Kenya introduces a new companies act and the insolvency act. Part ii proceedings from act of bankruptcy to discharge acts of bankruptcy 3. Companies act arrangement of sections part i preliminary section 1. Bankruptcy and insolvency act 1093 kb pdf full document. Winding up of companies, liquidation, dissolution, deregistration in kenya. Bankruptcy law the knowledge tree law notes ogekazacharia. Government of the republic of zambia general rules and rules include forms. Act current to 20191222 and last amended on 20191101. It also governs the office of the superintendent of bankruptcy, a. An act of parliament to amend and consolidate the law relating to the insolvency of natural persons and incorporated and unincorporated bodies. Insolvency law in kenya is strictly provided for by the insolvency act 2015 supported in detail by the insolvency regulations. Two, the bankruptcy rules are similar to english bankruptcy rules of 1952 which do not differ significantly from then english bankruptcy rules of 1915. Mar 09, 2016 before the commencement of the act, the majority of statutory provisions addressing insolvency law in kenya were found in the companies act cap 486 laws of kenya and the bankruptcy act cap 53. We shall endeavor to look at the historical development chronologically to show how the law slowly moved its focus from punishing the debtor to creating a balance between punishing fraudulent debtors, protecting the creditors and helping the debtor recover.
Bankruptcy application by a debtor kenya the kenyan legal. Nov 14, 2017 the act is a reproduction of the english sale of goods act 1893 which was made part of the kenya law by the colonial administration in kenya on 1st october 1931. Priority of claims under the kenya insolvency act, 2015. Acts of bankruptcy 1 a debtor commits an act of bankruptcy in each of the following cases a if in kenya or elsewhere he makes a conveyance or assignment of his property to a trustee or trustees for the benefit of his creditors generally. The insolvency act, 2015 the insolvency act was enacted with the key objective of amending and consolidating the legislation relating to the insolvency of natural persons and incorporated and unincorporated bodies. It governs bankruptcies, consumer and commercial proposals, and receiverships in canada. The coinage act of 1965 supersedes the act of 1792. Previously, a bankruptcy petition would only be applicable where the debtor was domiciled in kenya or within a year before the date of. Commercial and administrative law notes knec diploma knec. Table of contents1 commercial and administrative law1. Bankruptcy trustee not to sell bankrupts property before first creditors meeting.