From Debtor Repression to Protection: Giving Debtors a Fresh Start Under The Kenyan Insolvency Regime

Abstract

Anchored on the normative foundations of the fresh startpolicy, this article examines the treatment of bankrupts underKenya ' s repealed Bankruptcy Act, Cap 53 Laws of Kenya andthen traces the elements of the fresh start policy under theInsolvency Act of 2015 that repealed Cap 53. Results showthat Cap 53 was repressive against the bankrupt and he wasnever given a second chance in his economic and social lifefor the benefit of his creditors. Results also show that underthe Insolvency Act of 2015, the bankrupt has a second chanceto run his businesses as a going concern and can therefore payhis creditors from the proceeds of those businesses. Thepaper concludes that the Insolvency Act of 2015 breathesfresh life to the bankrupt and inspires optimism to creditorsthat their debts stand a better chance to be paid than was thecase under the repealed Act.Key Words: Bankruptcy Law; Repression; Protection; Fresh Start;rehabilitation; discharged debtor, Kenya.