ADVOKS GLOBAL · KENYA
Kenya Deposit Insurance Act
54. Appointment of Corporation as liquidator
Edition: 2022-12-31 · In force
54. Appointment of Corporation as liquidator
(1)The Central Bank shall appoint the Corporation as the liquidator of an institution where—(a)a recommendation to liquidate has been made under this Act; or(b)in any other case—(i)the institution is deemed to be unable to pay its debts; or(ii)a winding-up order is made or a resolution for voluntary winding-up is passed against the institution; or(iii)the institution is unable to pay sums due and payable to its depositors or creditors; or(iv)the Central Bank determines that the value of the institution’s assets is less than the amount of its liabilities; or(v)if in the opinion of the Central Bank, the institution has engaged in malpractices or activities that are contrary to the provisions of any Kenyan or other applicable law.(2)The appointment of the Corporation as the liquidator of an institution shall have the same effect as an appointment of a liquidator by the Court under Part VI of Insolvency Act (Cap. 53).(3)No liquidator shall be appointed in respect of an institution under Part VI of the Insolvency Act (Cap. 53) if the Corporation has already been appointed as liquidator in respect of the institution.(4)No liquidator of an institution, other than the Corporation shall be appointed without approval of the High Court.(5)The High Court shall not grant approval for the appointment of a liquidator under subsection (4), unless the Central Bank certifies that it does not intend to exercise its powers under this section.