Insolvency Act

Section 1. Short title and commencement Section 1(1) This Act may be cited as the Insolvency Act. Section 1(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. Section 1(3) Notwithstanding subsection (2), any provision that has not been brought into force within nine months after the publication of this Act shall come into force on the expiry of that period.

Section 2. Interpretation Section 2(1)(a) its holding company or its subsidiary; Section 2(1)(a)(i) its holding company or its subsidiary; Section 2(1)(a)(ii) a subsidiary of its holding company; Section 2(1)(a)(iii) a holding company of its subsidiary; Section 2(1)(a)(iv) a person who controls the company (whether alone or with the person's associates or with other associates of the company); Section 2(1)(a)(v) any other company in which a director of the company is also a director; or Section 2(1)(a)(vi) a natural person who is employed by the company; Section 2(1)(b) any other partner of the partnership; Section 2(1)(b)(i) any other partner of the partnership; Section 2(1)(b)(ii) a member of the partner's family or of the family of another partner of the partnership; Section 2(1)(b)(iii) a natural person who is employed by the partnership; or Section 2(1)(c) a member of the person's family; Section 2(1)(c)(i) a member of the person's family; Section 2(1)(c)(ii) a company controlled directly or indirectly, by the person whether alone or with associates; Section 2(1)(c)(iii) an associate of the person's associates; or Section 2(1)(c)(iv) any person (including a company) who employ...

Section 3. Objects and application of this Act Section 3(1)(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 corporate, that maintains a fair balance between the interests of those persons, entities, companies and bodies and those of their creditors; Section 3(1)(b) to enable those persons and entities to continue to operate as going concerns so that ultimately they may be able to meet their financial obligations to their creditors in full or at least to the satisfaction of those creditors; and Section 3(1)(b)(i) to enable those persons and entities to continue to operate as going concerns so that ultimately they may be able to meet their financial obligations to their creditors in full or at least to the satisfaction of those creditors; and Section 3(1)(b)(ii) to achieve a better outcome for the creditors as a whole than would likely to be the case if those persons and entities were adjudged bankrupt; Section 3(1)(c) to enable those companies and bodies to continue to op...

Section 4. Circumstances in which person acts as insolvency practitioner Section 4(1)(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; Section 4(1)(b) a deed of composition made for the benefit of the person's creditors; or Section 4(1)(b)(i) a deed of composition made for the benefit of the person's creditors; or Section 4(1)(b)(ii) a trust deed for the creditors of the person; or Section 4(1)(c) as supervisor of a voluntary arrangement approved under Division I of Part IV. Section 4(2)(a) the liquidator, provisional liquidator, administrator of the company; Section 4(2)(b) a supervisor of a voluntary arrangement approved under Part VIII; or Section 4(2)(c) a supervisor of a voluntary arrangement approved under Part IX. Section 4(3) A reference in this section to a natural person includes, except in so far as the context otherwise requires, a reference to a partnership other than a limited liability partnership.

Section 5. Consequences of acting without authorisation Section 5(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. Section 5(2) This section does not apply to the Official Receiver.

Section 6. Qualifications for person to act as insolvency practitioners Section 6(1)(a) satisfies the requirements of the insolvency regulations with respect to education, practical training and experience; Section 6(1)(b) is a member of a professional body recognised under section 7 ; and Section 6(1)(c) satisfies the requirements (if any) of the rules governing the body. Section 6(2)(a) has been adjudged bankrupt, or the person's estate has been sequestrated and, in either case, the person has not been discharged; Section 6(2)(b) is subject to a disqualification order made under the law relating to companies; or Section 6(2)(c) is unable to perform the functions of an insolvency practitioner because of physical or mental infirmity. Section 6(3) A body corporate is not eligible to be an insolvency practitioner, but this subsection does not extend to an employee of a body corporate. Section 6(4) A natural person who, during the two years immediately preceding the commencement of this Part, was carrying on any of the activities referred to in section 4(1) or (2) is, unless disqualified under subsection (2), taken to be qualified to be and to act as an insolvency practitioner on and...

Section 7. Duty of Cabinet Secretary to declare certain bodies to be recognised as professional bodies for the purposes of this Act Section 7(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. Section 7(2)(a) regulates the practice of a profession; and Section 7(2)(b) are fit and proper persons to act as insolvency practitioners; and Section 7(2)(b)(i) are fit and proper persons to act as insolvency practitioners; and Section 7(2)(b)(ii) meet acceptable requirements relating to education practical training and experience. Section 7(3) A reference to the members of a recognised professional body includes a reference to persons who are, whether members of that body or not, governed by its rules in the practice of the relevant profession. Section 7(4) The Cabinet Secretary may revoke a notice made under subsection (1) if it appears to the Cabinet Secretary that the professional body no longer meets the requirements of subsection (2). Section 7(5) A notice made by the Cabinet Secretary under this section takes effect from the date of the notice or such other date...

Section 8. Application to act as insolvency practitioner Section 8(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. Section 8(2)(a) is not made in the manner prescribed by the insolvency regulations; Section 8(2)(b) does not contain or be accompanied by such information as the Official Receiver may reasonably require for purposes of determining the application; or Section 8(2)(c) does not comply with subsection (3); or Section 8(2)(d) is not accompanied by the fee so prescribed. Section 8(3)(a) that the applicant is qualified to act as an insolvency practitioner; and Section 8(3)(b) has a professional indemnity insurance policy or has provided security for the proper performance of the functions of an insolvency practitioner; and Section 8(3)(b)(i) has a professional indemnity insurance policy or has provided security for the proper performance of the functions of an insolvency practitioner; and Section 8(3)(b)(ii) that policy or security meets the requirements prescribed by the insolvency regulations with respect to acting as a practitioner; and Sec...

Section 9. Grant or refusal of authorisation Section 9(1) As soon as practicable after receiving an application made under section 8 , the Official shall either grant or refuse the application. Section 9(2)(a) the application complies with the requirements of that section; and Section 9(2)(b) that the applicant is qualified to act as an insolvency practitioner and is a fit and proper person to act as such. Section 9(3) The Official Receiver may not refuse an application for an authorisation without having given the applicant an opportunity to be heard. Section 9(4) On granting an authorisation under this section, the Official Receiver shall notify the applicant in writing of the authorisation and specify the date on which the authorisation is to take effect. Section 9(5) An authorisation granted under this section continues in force for such period, and subject to such reasonable conditions, as are specified in the authorisation.

Section 10. Power of Official Receiver to revoke authorisation Section 10(1)(a) is no longer qualified to act as an insolvency practitioner; Section 10(1)(b) is no longer a fit and proper person to act as an insolvency practitioner; Section 10(1)(c) has been found guilty of an offence under this Act, or of an offence under any other Act involving fraud, dishonesty or breach of trust; Section 10(1)(d) has contravened or failed to comply with, or is contravening or failing to comply with, a condition of the authorisation; or Section 10(1)(e) in making the application for an authorisation, has provided the Official Receiver with false or misleading information. Section 10(2) An authorisation granted under this section may be revoked by the Official Receiver at the request, or with the consent, of the holder of the authorisation. Section 10(3) The Official Receiver may not revoke an authorisation (otherwise than at the request or with the consent of its holder) without having given its holder an opportunity to be heard. Section 10(4) A revocation of an authorisation does not take effect until the period within which an appeal within which the holder of the authorisation can appeal agai...

Section 11. Right to appeal against decisions of Official Receiver Section 11(1) A person whose application for an authorisation to act as an insolvency practitioner is refused may appeal to the Court against the refusal. Section 11(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 appeal to the Court against the refusal. Section 11(3)(a) it is lodged with the Court within thirty days after the decision of the Official Receiver refusing the application or revoking the authorisation is notified to the applicant or holder of the authorisation, or within such extended period as the Court may allow; and Section 11(3)(b) is in the form, and complies with any other requirements, prescribed by the insolvency regulations for the purposes of this section. Section 11(4) The Official Receiver is entitled to be served with a copy of the appeal and to appear at the hearing of the appeal as respondent. Section 11(5) On the hearing of an appeal lodged in accordance with this section, the Court shall, if it considers that the refusal of the appellant's application, or the revocation of the appellant'...

Section 12. Interpretation: Part III Section 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 one or more creditors of a debtor; "debtor" means a natural person who owes money to one or more creditors; and, if a trust, partnership or other unincorporated body owes money to a creditor, includes all of the trustees of the trust, all of the partners of the partnership and all of the members of the body; "debtor's application” means a bankruptcy application made in accordance with section 32 by a debtor; "statutory demand" means a demand for payment of a debt made as referred to in section 17 (3)(a) or (4)(a).

Section 13. Nature of bankruptcy Section 13(1)(a) on the application of one or more creditors of the debtor made in accordance with section 17 ; or Section 13(1)(b) on the application of the debtor made in accordance with section 32 . Section 13(2)(a) the property of the person vests in the bankruptcy trustee or, if there is no bankruptcy trustee, the Official Receiver; Section 13(2)(b) the person becomes restricted as to the business activities that the person can undertake; and Section 13(2)(c) the Official Receiver is entitled to recover assets that the person has transferred within the two years immediately preceding the bankruptcy.

Section 14. Alternatives to bankruptcy Section enter into a voluntary arrangement in accordance with Division I of Part IV;

Section 15. Who is entitled to make a bankruptcy application Section 15(1)(a) by one of the person's creditors or jointly by two or more one of them; Section 15(1)(b) by the debtor; or Section 15(1)(c) by the supervisor of any person who is for the time being bound by a voluntary arrangement proposed by the debtor and approved under Division I of Part IV. Section 15(2) On the hearing of such an application, the Court may, subject to and in accordance with the provisions of this Part, make a bankruptcy order. Section 15(3)(a) is domiciled in Kenya; Section 15(3)(b) is personally present in Kenya on the date on which the application is made; or Section 15(3)(c) has been ordinarily resident, or has had a place of residence; or Section 15(3)(c)(i) has been ordinarily resident, or has had a place of residence; or Section 15(3)(c)(ii) has carried on business in Kenya. Section 15(4)(a) the carrying on of a business by a firm or partnership of which the debtor is a member; and Section 15(4)(b) the carrying on of a business by an agent or manager for the debtor for such a firm or partnership.

Section 16. Proceedings on a bankruptcy application Section 16(1) A bankruptcy application may not be withdrawn without the approval of the Court. Section 16(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 regulations has not been complied with in a material respect. Section 16(3) If the Court stays proceedings on a bankruptcy application, it may do so on such terms as it considers appropriate.

Section 17. Creditor may apply for bankruptcy order in respect of debtor Section 17(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. Section 17(2)(a) the amount of the debt, or the aggregate amount of the debts, is equal to or exceeds the prescribed bankruptcy level; Section 17(2)(b) the debt, or each of the debts, is for a liquidated amount payable to the applicant creditor, or one or more of the applicant creditors, either immediately or at some certain, future time, and is unsecured; Section 17(2)(c) the debt, or each of the debts, is a debt that the debtor appears either to be unable to pay or to have no reasonable prospect of being able to pay; and Section 17(2)(d) there is no outstanding application to set aside a statutory demand in respect of the debt or any of the debts. Section 17(3)(a) the applicant creditor to whom the debt is owed has served on the debtor a demand requiring the debtor to pay the debt or to secure or compound for it to the satisfaction of the creditor, at least twenty-one days have elapsed si...

Section 18. When court can make bankruptcy order on application by secured creditor Section 18(1)(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 being made, to give up the security for the benefit of all the bankrupt's creditors; or Section 18(1)(b) the application is expressed not to be made in respect of the secured part of the debt and contains a statement by that person of the estimated value at the date of the application of the security for the secured part of the debt. Section 18(2) In a case to which subsection (1)(b) applies, the secured and unsecured parts of the debt are to be treated for the purposes of sections 17 , 19 and 20 as separate debts.

Section 19. Expedited creditor's application Section there is a serious possibility that the debtor's property, or the value of any of that property, will be significantly reduced during that period; and

Section 20. Proceedings on creditor's application Section 20(1)(a) a debt which, having been payable at the date of the application or having since become payable, has been neither paid nor secured or compounded for; or Section 20(1)(b) a debt that the debtor has no reasonable prospect of being able to pay when it falls due. Section 20(2) If the application contains a statement of the kind referred to in section 19 , the Court may not make a bankruptcy order until at least twenty-one days have elapsed since the service of the relevant statutory demand. Section 20(3)(a) that the debtor has made an offer to secure or compound for a debt in respect of which the application is made; Section 20(3)(b) that the acceptance of that offer would have required the dismissal of the application; and Section 20(3)(c) that the offer has been unreasonably refused. Section 20(4) In determining for the purposes of subsection (3) whether the debtor is able to pay all of the debtor's debts, the Court shall take into account the debtor's contingent and prospective liabilities. Section 20(5) In determining for the purposes of this section what constitutes a reasonable prospect that a debtor will be able...

Section 21. Creditor's execution process not to be issued or continued Section 21(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. Section 21(2) If the creditor has already issued the execution process, the creditor may not continue it. Section 21(3) The creditor may make an application to the relevant court for approval to issue or continue the execution process. Section 21(4) On the hearing of an application made under subsection (3), the relevant court may make an order permitting the applicant to begin or continue the execution process but only if it is satisfied after considering all representations made to it that the interests of the other creditors will not be detrimentally affected. Section 21(5) Any action taken in contravention of subsection (1) or (2) is void.

Section 22. Power of relevant court to stay execution processes by other creditors or allow them on terms Section 22(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. Section 22(2)(a) stay the execution process on such terms as the Court considers appropriate; or Section 22(2)(b) allowing the execution process to continue on such terms as the Court considers appropriate.

Section 23. Execution process issued by other court Section 23(1) This section applies if an execution process has been issued by a court other than the High Court. Section 23(2)(a) stay the execution process on such terms as it considers appropriate; or Section 23(2)(b) permit the execution process to continue on such terms as it considers appropriate.

Section 24. No restriction on execution process if bankruptcy application withdrawn or dismissed Section 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. When court may adjudge debtor bankrupt Section 25(1) The Court may make a bankruptcy order in respect of the debtor if the creditor has complied with section 7. Section 25(2)(a) the applicant creditor has not satisfied the requirements specified in section 17 ; Section 25(2)(b) the debtor is able to pay the debtor's debts; or Section 25(2)(c) it is just and equitable that the Court should not make a bankruptcy order.

Section 26. When the Court may stay application Section 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. Orders if more than one application Section 27(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. Section 27(2) On making a bankruptcy order under subsection (1), the Court shall dismiss the application that has been stayed on such terms as it considers appropriate.

Section 28. Orders if there is more than one order Section 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. Power of the Court to make order staying bankruptcy application, etc. Section 29(1)(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; Section 29(1)(b) has made a proposal under Division I of Part IV; or Section 29(1)(c) has applied for a summary instalment order under that Division. Section 29(2) The debtor, the bankruptcy trustee or any creditor may apply for an order under this section. Section 29(3)(a) an order staying the bankruptcy application; Section 29(3)(b) an order staying any other bankruptcy application; Section 29(3)(c) an order as to costs; Section 29(3)(d) if it orders costs to be paid to the creditor who applied for the bankruptcy application—an order that the costs be paid out of the assets of the debtor. Section 29(4) This section does not limit the powers of the Court under section 39 .

Section 30. Court may stay application while underlying debt is determined Section 30(1)(a) does not owe a specified debt to the creditor; or Section 30(1)(b) owes a specified debt to the creditor, but the debt is less than the prescribed bankruptcy level. Section 30(2)(a) whether the debt is owed; or Section 30(2)(b) how much of the debt is owed, can be resolved at trial. Section 30(3) As a condition of staying the application, the Court may require the debtor to give security to the creditor for any debt that may be established as owing by the debtor to the creditor, and for the cost of establishing the debt.

Section 31. Court may allow one creditor to be substituted for another

Section 32. When debtor may make application for bankruptcy order Section 32(1) A debtor may make an application to the Court for an order adjudging the debtor bankrupt only on the grounds that the debtor is unable to pay the debtor's debts. Section 32(2)(a) such particulars of the debtor's creditors and of the debtor's debts and other liabilities and assets as may be prescribed by the insolvency regulations; and Section 32(2)(b) such other information as may be so prescribed. Section 32(3) The Court may reject a statement of the debtor's financial position if of the opinion that it is incorrect or incomplete. Section 32(4)(a) a newspaper circulating within the region in which the debtor ordinarily resides; and Section 32(4)(b) in such other publications (if any) as may prescribed by the insolvency regulations for purposes of this section. Section 32(5) The Court may decline to hear the application if subsection (4) has not been complied with to its satisfaction.

Section 33. Appointment of insolvency practitioner by the Court Section 33(1)(a) that if a bankruptcy order were made the total amount of the applicant's debts, so far as unsecured, would be less than the small bankruptcies level; Section 33(1)(b) that if a bankruptcy order were made, the value of the bankrupt's estate would be equal to or more than the prescribed minimum value; Section 33(1)(c) neither been adjudged bankrupt; nor Section 33(1)(c)(i) neither been adjudged bankrupt; nor Section 33(1)(c)(ii) made a composition with the debtor's creditors in satisfaction of the debtor's debts or a scheme of arrangement of the debtor's financial affairs; and Section 33(1)(d) that it would be appropriate to appoint an authorised insolvency practitioner to prepare a report under section 34 . Section 33(2)(a) to prepare a report under section 34 ; or Section 33(2)(b) subject to Division 1 of Part IV, to act in relation to any voluntary arrangement to which the report relates as supervisor for the purpose of supervising its implementation. Section 33(3)(a) "prescribed minimum value" means the amount for the time being specified in the insolvency regulations for the purposes of this section...

Section 34. Action on report of insolvency practitioner Section 34(1)(a) inquire into the debtor's financial affairs; and Section 34(1)(b) within such period as the Court may specify, submit a report to the Court stating whether the debtor is willing to make a proposal for a voluntary arrangement in accordance with Division 1 of Part IV. Section 34(2)(a) whether, in his or her opinion, a meeting of the debtor's creditors should be convened to consider the proposal; and Section 34(2)(b) if, in that practitioner's opinion such a meeting should be convened—the date on which, and time and place at which, the meeting should be held. Section 34(3)(a) without any application, make an interim order under section 306, if it considers it appropriate to do so for the purposes of facilitating the consideration and implementation of the debtor's proposal; or Section 34(3)(b) if it considers it would be inappropriate to make such an order—make a bankruptcy order in respect of the applicant. Section 34(4) An interim order made in accordance with subsection (3)(a) ceases to have effect at the end of such period as the Court may specify for the purpose of enabling the debtor's proposal to be consid...

Section 35. Joint application can be made by two or more debtors

Section 36. Appointment of interim trustee of debtor's property on application of creditor Section 36(1) After a creditor's application has been made, the creditor or any other creditor of the debtor may apply to the Court for an order for the appointment of an authorised insolvency practitioner as interim trustee in respect of all or a specified part of the debtor’s property. Section 36(2) The Court may make such an order at any time before a bankruptcy order is made in respect of the debtor. Section 36(3)(a) take control of any property of the debtor; Section 36(3)(b) sell any perishable property or property of the debtor that is likely to fall rapidly in value; Section 36(3)(c) control the affairs or property of the debtor as directed by the Court. Section 36(4) An order authorising the trustee to control a debtor's business may not extend beyond what, in the Court's opinion, is necessary to conserve the debtor's property. Section 36(5) The Official Receiver and any authorised insolvency practitioner are suitably qualified persons for the purpose of subsection (1). Section 36(6) In this section, "debtor's business" includes any business in which the debtor has a financial intere...

Section 37. Additional orders after appointment of interim trustee Section 37(1) After the appointment of an interim trustee under section 36 , the Court may, on an application made under subsection (2), make additional orders under that section. Section 37(2) An application for the purpose of subsection (1) made by a creditor or the interim trustee or, with the approval of the Court, by any other person.

Section 38. Notice of appointment of interim trustee to be published Section 38(1)(a) in one or more newspapers circulating in Kenya; and Section 38(1)(b) in such other publication as may be prescribed by the insolvency regulations for the purposes of this section. Section 38(2) The appointment of the interim trustee does not take effect until subsection (1) has been complied with.

Section 39. Execution process not to be issued after notice of appointment of trustee is published Section 39(1) A creditor of the debtor may not issue an execution process under section 23 after notice of the appointment of the interim trustee has been published. Section 39(2) A creditor may not continue an execution process already issued before notice of the appointment of the interim trustee has been published. Section 39(3) A creditor or any other interested person may apply to the Court for an order allowing the issue or continuation of an execution process, and the Court may make an order on such terms as it considers appropriate. Section 39(4) Any action taken in contravention of subsection (1) or (2) is void.

Section 40. Effect of staying execution

Section 41. Bankruptcy commences on making of bankruptcy order Section A bankruptcy under this Act commences on the date and at the time when a bankruptcy order is made in respect of the debtor.

Section 42. Date and time of bankruptcy order to be recorded Section 42(1) On making a bankruptcy order, the Court shall record the date and time when the order was made. Section 42(2) If the debtor is adjudged bankrupt on the application of the debtor, the Official Receiver shall record on the application the date and time when the debtor made the application.

Section 43. Registrar of the Court to notify trustee of bankruptcy order Section As soon as practicable after the Court has made a bankruptcy order in respect of a debtor, the Registrar of the Court shall forward a copy of the order to the Official Receiver.

Section 44. Official Receiver to nominate bankruptcy trustee Section 44(1) As soon as practicable after receiving a copy of a bankruptcy order, the Official Receiver shall nominate a qualified person to be bankruptcy trustee in respect of the debtor's property. Section 44(2) In this subsection (1), "qualified person" means the Official Receiver or an authorised insolvency practitioner.

Section 45. Presumption that act was done, or transaction was entered into or made, after bankruptcy Section If a doubt arises as to whether an act was done, or a transaction entered into or made, before or after the time when a bankruptcy commenced, it is to be presumed, until the contrary is proved, that the act was done, or the transaction was entered into or made, after that time.

Section 46. Bankruptcy order to be binding on all persons Section on the expiry of the time within which an appeal may be lodged against the order; or

Section 47. Official Receiver to maintain public register of undischarged and discharged bankrupts Section 47(1) The Official Receiver shall establish and maintain a public register of undischarged and discharged bankrupts. Section 47(2) The Official Receiver shall maintain the register in accordance with Division 2 of Part XIl.

Section 48. What happens or is to happen on and after bankruptcy commences Section 48(1)(a) all proceedings to recover the bankrupt's debts are stayed; and Section 48(1)(b) the property of the bankrupt (whether in or outside Kenya), and the powers that the bankrupt could have exercised in respect of that property for the bankrupt's own benefit, vest in the Official Receiver. Section 48(2) Despite subsection (1), the Court may, on the application by a creditor or other person interested in the bankruptcy, allow proceedings that had already begun before the bankruptcy commenced to continue on such terms as the Court considers appropriate. Section 48(3)(a) once in the Gazette ; and Section 48(3)(a)(i) once in the Gazette ; and Section 48(3)(a)(ii) once in a newspaper widely circulating in the area in which the bankrupt resides; or Section 48(3)(b) if the Court directs that the order be advertised in some other publication, publish such a notice in that other publication. Section 48(4) If the bankrupt has appealed against the order or has applied for its annulment, the Court may order the Official Receiver not to advertise the bankruptcy order, but only if it is satisfied that there ar...

Section 49. Official Receiver to serve notice on bankrupt requiring the bankrupt to lodge statement of the bankrupt's financial position Section 49(1)(a) stating that a bankruptcy order has been made in respect of the bankrupt; Section 49(1)(b) requiring the bankrupt to lodge with the Official Receiver a statement setting out the bankrupt's financial position; and Section 49(1)(c) specifying a deadline for lodging the statement with the Official Receiver. Section 49(2) The Official Receiver shall serve the notice at the address of the bankrupt given in the bankruptcy application or at the bankrupt's address last known to the Official Receiver. Section 49(3) This section does not apply if the bankrupt has already lodged a statement under section 32 .

Section 50. Bankrupt to lodge statement of financial position with bankruptcy trustee Section 50(1)(a) particulars of the bankrupt's assets; Section 50(1)(b) the bankrupt's debts and liabilities; Section 50(1)(c) the names, residences and occupations of the bankrupt's creditors; Section 50(1)(d) the securities held by the bankrupt's creditors; Section 50(1)(e) the dates when the securities were given; and Section 50(1)(f) such other information as may be prescribed by the insolvency regulations or as the bankruptcy trustee may reasonably require. Section 50(2) At any time after lodging with the bankruptcy trustee a statement of the bankrupt's financial position, the bankrupt may lodge additional or amended statements or answers with the bankruptcy trustee. Section 50(3) A bankrupt who fails to comply with a requirement of subsection (1) commits an offence and on conviction is liable to a fine not exceeding one million shillings or to imprisonment for a term not exceeding two years, or to both. Section 50(4) If, after being convicted of an offence under subsection (2), a bankrupt, without reasonable excuse, continues to fail to comply with the relevant requirement, the bankrupt comm...