1.         In relation to Infants

Generally apart from contracts for necessaries infants are not liable in respect of debts that they have incurred.

Re Davenport [1913] 2 All E.R. 850
Re A Debtor [1950] Ch. 282

But if an infant fraudulently contracts a debt during his infancy he will be held liable for the debt and the creditor may claim in bankruptcy on his acquiring the age of majority.  This is as per the Infants Relief Act of England 1874 which is a statute of general application to Kenya.

2.         Insane Persons
These are also subject to bankruptcy proceedings.  Generally persons of unsound mind cannot be adjudicated bankrupt without the court’s consent.  Refer to the Bankruptcy Rule 247.

3.         Married Women

Section 117 of the BA provides that every married woman shall be subject to the law relating to bankruptcy as if she were ‘feme sole’.

4.         Aliens & Persons Domiciled Abroad

They are also subject to bankruptcy proceedings as of Section 6(1) (d) of the B A if within a year before the date of presentation of the petition has ordinarily resided or had a dwelling house or place of business or has carried on business in Kenya personally or by means of an agent or manager or is or within that period has been a member of a firm or partnership of persons which has carried on business in Kenya by means of a partner or partners or an agent or manager.

5.         Companies/Corporations

Here bankruptcy proceedings are not applicable to companies.  These are dealt with under liquidation and winding up provisions of the Companies Act Cap 486.  Section 118 of the BA provides that a “Receiving Order shall not be made against any corporation or against any association or company  registered under the Companies Act or any enactment repealed by that Act.” The position in England has been reformed by the Insolvency Act.

6.         Partnerships

Whether the partnership is general or limited, it is subject to the provisions of the Bankruptcy Act.  Section 119 thereof states as follows “subject to such modifications as may be made by rules under Section 122 this Act shall apply to limited partnerships in the same manner as if limited partnerships were ordinary partnerships and on all the general partners of a limited partnership.  Being adjudged bankrupt the assets of the limited partnership shall vest in the Trustee in Bankruptcy.

7.         Deceased Persons

There is a provision for administration in bankruptcy of the estate of a deceased person under Section 121 (1) of the BA.  Section 107 BA also enables proceedings already commenced to continue as if the debtor were alive.  Where the debtor is dead a petition may be presented by his personal representative when its purpose is to obtain an administration order.

8.         Judgment Debtor
The BA does not prevent an undischarged bankrupt from creating valid debts and since he may commit an act of bankruptcy, institution of subsequent bankruptcy proceedings before he is discharged from a prior bankruptcy is permissible.


Like Us on Facebook

Contact Form


Email *

Message *