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...
In August, Kenya went to the polls to elect its fifth President marking end of the political season. After the votes were counted, including those at the Supreme Court, our fifth President was sworn in. The largely seamless polls were a key milestone in the Kenyan quest for democracy and leadership by the people for...
Introduction Afrasia Bank Limited won its appeal to the High Court against an arbitrator’s refusal to find the Transfer of Businesses Act (the Act) applicable to the transfer of part of the assets and liabilities of Chase Bank Kenya Limited under receivership to SBM Bank (Kenya). We analyse this case below. Facts In 2016 Afrasia...
A recent decision from the Retirement Benefits Appeals Tribunal highlights the pitfalls of updating scheme documents. Updates while necessary to reflect current law, policy, and best practices can lead to undesirable consequences. Former employees of Standard Chartered Bank Kenya successfully challenged reduced pension benefits and had the bank ordered to repay a KES 1 billion...
The Cabinet Secretary Finance recently gazetted the Capital Markets (Whistleblower Regulations) 2022 to give effect to the amendments to the Capital Markets Act (the Act) in 2018 by setting up a framework for the payment of rewards to whistleblowers. The amendments to the Capital Markets (Conduct of Business) (Market Intermediaries) Regulations 2011, will enhance access...
Introduction On November 26, 2021 the Cabinet Secretary for Lands and Physical Planning gazetted various regulations (the “Regulations”) under the Physical and Land Use Planning Act, 2019 (the “Act”) and they include: The Physical and Land Use Planning (Development Permission and Control) (General) Regulations, 2021; Physical and Land Use Planning (Development Control Enforcement) Regulations, 2021;...
Introduction The Ministry of Lands and Physical Planning published a list of titles within Nairobi County whose land reference numbers have been converted to new parcel numbers. Landowners of the listed titles can now apply for new titles on the Ardhi Sasa portal: https://ardhisasa.lands.go.ke. How can we help? Landowners This includes landowners of vacant land...
Introduction On April 04, 2022, the Cabinet Secretary for the National Treasury and Planning introduced changes to the Regulations governing pensions. The changes that are highlighted below were introduced through Legal Notices Numbers 71, 73 and 74 of 2022 and affect Individual Pension Plan Schemes (IPPS), Occupational Retirement Benefits Schemes (ORBS), and Umbrella Retirement Benefits...
On August 02, 2022, an article written by Emmanuel Mueke, Partner was published on the Business Daily making a case for restructuring insolvent entities. The article demonstrated how giving a second chance to insolvent businesses can be a win-win for all stakeholders of a business; from suppliers and creditors to employees and shareholders. To find...
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