This is a summary of the Kenya Insolvency Act, 2015:

Purpose and Application

• The Act's objects are to establish a framework for the efficient and equitable administration of the estates of insolvent natural persons and unincorporated entities, and the assets of insolvent companies.

• It aims to enable financially redeemable debtors and companies to continue operating, achieving a better outcome for creditors than bankruptcy or liquidation.

• For irredeemable cases, it provides an orderly system for adjudging persons bankrupt or liquidating companies, and for the optimal administration and distribution of their estates.

• The Act applies to natural persons, partnerships, limited liability partnerships, companies, and other corporate bodies established by written law.

• It repealed the former Bankruptcy Act.

Key Provisions

• Insolvency Practitioners: Sets out the circumstances in which a person acts as an insolvency practitioner, the qualifications, and the process for authorization by the Official Receiver.

• Bankruptcy of Natural Persons (Part III): Deals with bankruptcy applications by creditors or debtors, the nature of bankruptcy, the appointment of an interim trustee, and the adjudication and discharge of a bankrupt.

• Alternatives to Bankruptcy (Part IV): Provides options like voluntary arrangements, summary instalment orders, and the no-asset procedure.

• Liquidation of Companies (Part VI): Covers voluntary liquidation (members' and creditors') and liquidation by the Court.

• Administration of Insolvent Companies (Part VIII): Defines administration, its objectives, and the process for appointing and regulating administrators.

• Company Voluntary Arrangements (Part IX): Details proposals for voluntary arrangements and moratoria on debt payments.

• Administration of the Act (Part XII): Provides for the appointment and functions of the Official Receiver and Deputy Official Receivers, and the maintenance of public registers relating to bankrupts and others.

Important Dates

• Date of Assent: 11th September, 2015.

• Date of Commencement: See Section 1, with a default commencement nine months after publication for any un-commenced provisions.