Insolvency, Restructuring & Turnaround
Administration, liquidation, receivership and company voluntary arrangements (CVAs) under the Insolvency Act 2015, alongside out-of-court creditor workouts, balance-sheet restructurings and business rescue planning. We act for distressed companies, secured and unsecured creditors, statutory managers, administrators and DFI lenders on enforcement and recovery.
What we advise on. We advise on the full range of formal and informal insolvency processes: administration, liquidation (members’ and creditors’), receivership, company voluntary arrangements (CVAs) and schemes of arrangement, alongside out-of-court workouts, standstill arrangements, balance-sheet restructurings and business-rescue planning. We also handle the recovery and enforcement work that surrounds distress — secured enforcement, set-off, claw-back claims and director-liability questions.
Governing law and regulators. Our work is grounded in the Insolvency Act 2015 and its regulations, the Companies Act 2015 and the Movable Property Security Rights Act, with proceedings before the High Court (Commercial and Admiralty Division). We work alongside licensed insolvency practitioners and, in regulated-sector failures, with the relevant regulator such as the Central Bank of Kenya.
Who we act for. We act for distressed companies and their directors, secured and unsecured creditors, banks and DFIs, administrators, liquidators and statutory managers. Acting across the table gives us a realistic view of how a restructuring or enforcement will actually play out.
Why OLM for insolvency and restructuring. Distress is time-critical and reputationally sensitive. We move quickly to stabilise the position, we are candid about which outcomes are achievable, and we combine restructuring strategy with the litigation capability to enforce or defend when negotiation fails.
Frequently Asked Questions
What is the difference between administration and liquidation in Kenya? Administration is a rescue procedure under the Insolvency Act 2015 that aims to keep a company operating as a going concern under an administrator; liquidation winds the company up and distributes its assets to creditors. We advise on which route best serves the stakeholders involved.
Can directors be personally liable for a company’s insolvency in Kenya? Yes, in defined circumstances — including insolvent or fraudulent trading and breach of duty. Directors should take advice early once insolvency is foreseeable; we advise boards on their duties and on minimising personal exposure.
How are secured creditors treated in a Kenyan insolvency? Secured creditors generally rank ahead of unsecured creditors to the extent of their valid, perfected security. We advise lenders on perfecting and enforcing security and advise other stakeholders on challenging or working around it.