ADVOKS GLOBAL · KENYA
Merchant Shipping Act
303. Compensation and security for compensation
Edition: 2023-12-11 · In force
303. Compensation and security for compensation
(1)Subject to subsection (2), where a ship is detained under the provisions of this Act or any regulations made under this Act and the owner of the ship proves to the satisfaction of the Director-General that there was no reasonable cause for the detention of the ship, the Government may pay compensation to the owner of the ship for any loss or damage sustained by the owner by reason of such detention.(2)In determining whether to pay such compensation and the amount thereof, the Government shall have regard to the provisions of any international agreement signed on behalf of the Government.(3)Subject to subsection (4), where a complaint is made to the Cabinet Secretary or the Director-General that a Kenyan ship is unsafe, or otherwise does not comply with the provisions of this Act or any regulations made under this Act, the Cabinet Secretary may, if he deems fit, require the complainant to give security to the satisfaction of the Cabinet Secretary for any compensation which may become payable by the Government pursuant to subsection (1).(4)The security referred to in subsection (3) shall not be required where the complaint is made by one fourth, being not less than three, of the seafarers belonging to the ship, and is not in the opinion of the Director-General frivolous or vexatious.(5)Where a ship is detained in consequence of any complaint, and the circumstances are such that the Government decides to pay compensation to the owner of the ship pursuant to subsection (1), the complainant shall be liable to pay to the Government all such compensation as the Government may pay under subsection (1) in respect of the detention of the ship.