ADVOKS GLOBAL · KENYA
Mombasa Pipeline Board Act
5. Vesting of property in Board
Edition: 1985-09-13 · In force
5. Vesting of property in Board
(1)All properties, assets, rights, debts, liabilities and obligations, and the benefit and burden of all contracts made by or on behalf of the Government, which are part of, concern or relate to the Government undertakings known as the Mombasa pipeline and the Mrere pipeline (hereafter in this Act referred to as the undertakings), shall be transferred to and vest in the Board as hereinafter provided.(2)The Minister may from time to time designate the properties, assets, rights, debts, liabilities and obligations, and the contracts made by or on behalf of the Government, which are part of, concern or relate to the undertakings, and as from the date of such designation the properties, assets, rights, debts, liabilities and obligations so designated, and the benefit and burden of the contracts so designated, shall vest in the Board without further or other assurance.(3)(a)The Board shall pay to the Government, in such manner and on such date or dates as the Minister may from time to time require, the total amount expended by the Government on or in connection with the undertakings.(b)For the purposes of this subsection—“the appropriate date” means, in respect of any loan agreement made between the Government and any person whereby money was borrowed by the Government and used for or in connection with the undertakings, the date of the vesting of the loan agreement in the Board under or by virtue of the foregoing provisions of this section;“the total amount expended by the Government” means the sum of—(i)all amounts paid by the Government otherwise than from moneys borrowed by the Government under any such loan agreement as aforesaid; and(ii)all amounts repaid, in respect of capital or interest, by the Government to any person before the appropriate date under any such loan agreement as aforesaid.(4)If, within one month from the date specified by the Minister under paragraph (a) of subsection (3) for the payment of any amount payable by the Board to the Government under that subsection, the Board fails to pay that amount, it shall pay interest thereon as from the date specified as aforesaid at such rate or rates as the Minister may from time to time determine.(5)The Board may, or if the Minister so directs shall, secure the payment of any amount and interest thereon for which the Board is or becomes liable under or by virtue of this section by the issue of debentures secured upon the whole or any part of the property, assets or rights, both present and future, vested in the Board under this section.