Corporate and Commercial Law Archives - Home - KN Law LLP Corporate and Commercial Law

In 2022, the Employment and Labour Relations Court invalidated the 2013 National Social Security Fund Act for being unconstitutional. In 2023, the Court of Appeal reversed this decision after finding the Labour Court lacked jurisdiction to hear the original case. Pursuant to the 2023 decision, implementation of the 2013 NSSF Act began in February 2023....

On Monday, 09 October 2023, the President assented to the 2023 Privatization Act. The Act will overhaul the regulatory framework for privatizing public entities established by the 2005 Privatization Act. It represents a notable and hopeful advancement in privatization regulation. It is expected to enhance privatization by simplifying the privatization process and timelines. It is...

Introduction Execution of documents by corporate entities can sometimes be plagued by administrative inefficiencies. This is mainly due to over-reliance on directors to perform this role. In this alert, we highlight what the law provides on execution of documents by companies. What does the law provide? The 2015 Companies Act provides a company may only...

The High Court held the in duplum rule in Section 44 of the Banking Act does not apply to non-deposit taking microfinance institutions.[i] The rule limits interest accrual to equal the principal amount outstanding when a loan becomes non-performing. We analyse below the difference between this decision and the one that held in duplum applies...

A recent High Court ruling will have lenders scratching their heads on how to best secure facilities they issue and enforce full repayment. The High Court, in a decision we expect to be challenged, held a lender who had been allowed to purchase the property securing a facility could not pursue guarantors for any shortfall. The...

In January 2023 the Data Commissioner made a landmark determination in a data protection complaint. The decision put into practice the provisions of the 2021 Complaints Regulations which we analysed here. The Commissioner dismissed a data protection claim and provided much needed clarity on enforcement of the 2019 Data Protection Act. We discuss key aspects...

A recent High Court decision[1] barred the withdrawal of pensions for purchasing residential houses. This had been introduced by the Tax Laws (Amendment) Act, 2020 which amended Section 38 (1A) of the Retirement Benefits Act (the RBA Act). These changes were made operational through the Retirement Benefits (Mortgage Loans) (Amendment) Regulations, 2020 (the Regulations). Section...

Introduction In a judgment[1] delivered on July 28, 2022, the Environment and Land Court in Mombasa declared that a developer intending to make changes to an existing development not anticipated in the original plan should have sought the consent of the unit owners. Case Summary The applicant was the owner of three apartments in a...

Restructuring occurs when a business significantly modifies its debt, operations, ownership, or structure to either improve or protect itself. Restructuring is often but not always, a response to financial pressure felt by a business. It can also be an effective way of improving business performance for example, selling a cost centre. So why should you...

Statistics published by the official receiver on Kenyan insolvency matters reveal a number of interesting trends. Company voluntary arrangements and administration despite the potential for business rescue have had almost no uptake. Liquidation despite its disadvantages remains the most popular insolvency process. For example, the liquidation of ARM Cement Limited saw secured creditors recover 62...