ADVOKS GLOBAL · KENYA
Public Finance Management Act
61. Recovery of amounts paid on a guarantee
Edition: 2026-09-25 · In force
61. Recovery of amounts paid on a guarantee
(1)Money paid by the Cabinet Secretary’ on a guarantee, including any expenses incurred by the Cabinet Secretary in respect of the guarantee, shall—(a)be a debt due to the national government from the borrower whose loan was guaranteed; and(b)be recoverable from the borrower as a debt due to the national government by—(i)proceedings brought in a court of competent jurisdiction; or(ii)withholding a transfer of money in terms of Article 225 of the Constitution, if the borrower receives appropriations.(2)Where Cabinet considers that the debt is more likely to be recovered if the borrower is allowed to pay the debt over a period of time, the Cabinet Secretary may enter into an agreement with the borrower to pay the debt over that period and at such intervals, and subject to such terms and conditions, as may be specified in the agreement.(3)The Cabinet Secretary shall not impose terms and conditions in an agreement under subsection (2) which are inconsistent with the terms and conditions specified in the guarantee document.(4)Where the Cabinet Secretary enters into an agreement under subsection (2), no proceedings under subsection (1)(b) shall be taken unless the borrower defaults under the agreement.(5)The Cabinet Secretary shall ensure that any money received or recovered from a borrower in respect of money paid under a guarantee entered into under this section is paid into the Consolidated Fund.