Insolvency Act

345. Criteria for entry to no-asset procedure

Edition: 2022-12-31 · In force

345. Criteria for entry to no-asset procedure

(1)The Official Receiver shall admit a debtor to the no-asset procedure if satisfied on reasonable grounds that—

(a)the debtor has no realisable assets;

(b)the debtor has not previously been admitted to the no-asset procedure;

(c)the debtor has not previously been adjudged bankrupt;

(d)the debtor has total debts that are not less than one hundred thousand shillings and not more than four million shillings; and

(e)the debtor does not have the means to repay any amount towards those debts.

(2)In this section, "realisable assets" does not include the assets that a bankrupt is allowed to retain under section 161, but does include assets (such as gifted assets) that might be recoverable by the Official Receiver—

(a)if the debtor were to be adjudged bankrupt on the date of application for entry to the no-asset procedure; and

(b)if Division 19 of Part II applied.

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Source: Kenya Law