ADVOKS GLOBAL · KENYA
Kenya Deposit Insurance Act
57. Residual payment
Edition: 2022-12-31 · In force
57. Residual payment
(1)Subject to section 33, there shall be paid out of the assets of the institution in liquidation in priority to all other debts including uninsured deposits—(a)the following statutory debts—(i)all taxes and local rates due from the institution at the relevant date and having become due and payable within twelve months next before that date not exceeding in the whole, one year’s assessment;(ii)all amounts due by the institution as the employer of any person under National Social Security Fund in respect of contributions payable during the period of twelve months immediately preceding the relevant date;(iii)all Government rents not more than one year in arrears;(b)all proper costs, charges and expenses, including the remuneration of staff of the Corporation appointed to liquidate an institution;(c)all wages or salaries in respect of services rendered to the institution by any employee other than a director during four months next before the relevant date and all wages, whether payable for time or for piece work, or any workman or labourer in respect of services so rendered;(d)all amounts due in respect of any compensation or liability for compensation under the Work Injury Benefits Act(Cap. 236), being amounts which have accrued before the relevant date.(2)The debts in subsection (1) shall—(a)rank equally to be paid in full, unless the assets are insufficient to meet them, in which case the debts shall abate in equal proportions; and(b)so far as the assets of the institution available for payment of general creditors are insufficient to meet them, have priority over the claims of holders of debentures under any floating charge created by the institution, and be paid accordingly out of any property comprised in or subject to that charge.(3)In the event of a landlord distraining or having distrained on any goods or effects of the institution within six months next before the date of a winding-up order, the debts to which priority is given by this section shall be a first charge on the goods or effects so distrained on, or the proceeds of the sale of the goods or effects.(4)Where any money is paid under any charge referred to in subsection (3), the landlord or other person shall have the same rights of priority as the person to whom the payment is made.(5)For the purposes of this section—(a)any remuneration in respect of a period of absence from work through sickness or other good cause shall be deemed to be wages in respect of services rendered to the institution during that period;(b)"relevant date" means—(i)in the case of an institution ordered to be wound-up compulsorily, the date of the first appointment of an interim liquidator, or, if no such appointment was made, the date of the winding-up order, unless in either case the institution had commenced to be wound-up voluntarily before that date; and(ii)in any case where subparagraph (i) does not apply, the date of the passing of the resolution for the winding-up of the institution.