ADVOKS GLOBAL · KENYA
National Payment System Act
28. Priority of certain instruments on winding up
Edition: 2025-11-04 · In force
28. Priority of certain instruments on winding up
(1)In this section, "priority payment instruction" means a money order, bank draft or similar payment instruction issued, directly or indirectly, by a participant in a designated payment system, but does not include an instrument issued by one such participant to another for the purpose of effecting a payment between them.(2)Despite anything to the contrary in the Insolvency Act (Cap. 53) and subject to this section, if a participant in a designated payment system is a company that is liquidated under the Insolvency Act (Cap. 53), unpaid priority payment instructions that were drawn on the participant and cleared through the payment system before the making of the liquidation order-(a)are payable from the participant's assets; and(b)rank in preference above any other unsecured claim against the assets.(3)A payment is not payable under subsection (2) in preference to any other claim against assets unless a request for the payment has been made within sixty days after the making of the liquidation order in relation to the participant concerned.(4)Subsection (2) does not permit a payment instruction to be settled in preference to any other claim against any assets, if the instruction was drawn on or certified or issued by the participant concerned with a view to giving the drawee of the instruction a preference over the participant's other creditors.