ADVOKS GLOBAL · KENYA
Land Act
92. Appointment, powers, remuneration and duties of the receiver
Edition: 2025-11-04 · In force
92. Appointment, powers, remuneration and duties of the receiver
(1)It shall be an implied condition in every charge that the chargee shall have the power to appoint a receiver of the income of the charged land.(2)Before appointing a receiver under this section, the chargee shall serve a notice in the prescribed form on the chargor and shall not proceed with the appointment until a period of thirty days, from the date of the service of that notice, has elapsed.(3)A chargee shall appoint a receiver, in writing, and the chargee shall sign the instrument of appointment.(4)A receiver may, at any time, be removed and a new receiver appointed, in writing, by the chargee.(5)A receiver appointed under this section shall be deemed to be the agent of the chargor for the purposes for which the receiver is appointed, and the chargor shall, unless the charge instrument provides otherwise, be solely responsible for the acts and defaults of the receiver.(6)The receiver shall have the power to demand and recover all the income of which the receiver is appointed, by action or otherwise, in the name of the chargor, and to give effectual receipts for the same.(7)The receiver shall be entitled to retain, out of any money received, all costs, charges and expenses incurred by the receiver and, for a commission at the rate specified in the appointment, but not exceeding five per centum of the gross amount of all money, received, or, if no rate is so specified at the rate of five per centum or any other rate as the chargor and chargee may agree or if the appointment of a receiver comes before the court, which the court considers fit.(8)The receiver shall apply all money received in the following order of priority—(a)first, in the payment of all rents, rates, charges, taxes and other outgoings required to be paid in respect of the charged property;(b)second, in keeping down all annual sums or other payments, and the interest on all principal sums, having priority to the charge of which the receiver is appointed;(c)third, in payment of the receiver’s commission and expenses;(d)fourth, in payment of all reasonable expenses incurred in the doing of anything that a receiver is required or entitled to do in respect of the charged land, including but not limited to—(i)the payment of any premiums on any insurance policy properly payable under the charge instrument; and(ii)the costs of undertaking necessary and proper repairs to any buildings comprised in the charged land as directed in writing by the chargee.(e)fifth, in the repayment of any money paid or advanced by the chargee to meet the reasonable expenses referred to in paragraphs (a), (b), (c) and (d) together with any interest on any amount so paid or advanced at the rate at which interest is payable on the principal sum secured by the charge;(f)sixth, in payment of the interest accruing due in respect of any principal sum secured by the charge;(g)seventh, in and towards the discharge of the principal sum secured by the charge, and payment of the residue, if any, to the chargor or other person entitled to the charged land.