Insolvency 2025

KENYA

Ethiopia

Somalia

Uganda

Kenya

Law and Practice Contributed by: Noella Lubano, Paul Kamara, Kateline Mang’ich and Anne Cheloti Oraro & Company Advocates

Nairobi

Tanzania

Contents 1. Overview of Legal and Regulatory System for Insolvency/Restructuring/Liquidation p.281

1.1 Legal Framework p.281 1.2 Types of Insolvency p.281 1.3 Statutory Officers p.283 2. Creditors p.284 2.1 Types of Creditors p.284 2.2 Priority Claims in Restructuring and Insolvency Proceedings p.284

2.3 Secured Creditors p.285 2.4 Unsecured Creditors p.285 3. Out-of-Court Restructuring p.285 3.1 Out-of-Court Restructuring Process p.285 3.2 Legal Status p.286 4. Statutory Restructuring, Rehabilitation and Reorganisation Proceedings p.286 4.1 Opening of Statutory Restructuring, Rehabilitation and Reorganisation p.286 4.2 Statutory Restructuring, Rehabilitation and Reorganisation Procedure p.287 4.3 The End of the Restructuring, Rehabilitation and Reorganisation Procedure p.288 4.4 The Position of the Debtor in Restructuring, Rehabilitation and Reorganisation p.288 4.5 The Position of Office Holders in Restructuring, Rehabilitation and Reorganisation p.288 4.6 The Position of Shareholders and Creditors in Restructuring, Rehabilitation and Reorganisation p.289 5. Statutory Insolvency and Liquidation Procedures p.289 5.1 The Different Types of Liquidation Procedure p.289

5.2 Course of the Liquidation Procedure p.289 5.3 The End of the Liquidation Procedure(s) p.290 5.4 The Position of Shareholders and Creditors in Liquidation p.290 6. Cross-Border Issues in Insolvency p.291 6.1 Sources of International Insolvency Law p.291 6.2 Jurisdiction p.291 6.3 Applicable Law p.291 6.4 Recognition and Enforceability p.291 6.5 Co-Ordination in Cross-Border Cases p.291 6.6 Foreign Creditors p.292 7. Duties and Liability of Directors and Officers p.292 7.1 Duties of Directors p.292 7.2 Personal Liability of Directors p.292 7.3 Duties and Personal Liability of Officers p.292 7.4 Other Consequences for Directors and Officers p.295 8. Setting Aside or Annulling a Transaction p.295 8.1 Circumstances for Setting Aside a Transaction or Transfer p.295 8.2 Claims to Set Aside or Annul a Transaction or a Transfer p.296

279 CHAMBERS.COM

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