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Originally published by The Kenyan Wall Streetbusiness
September 17, 2025
3h ago
What It Means When a Company Is Under Administration in Kenya
What it means when a Kenyan company is placed under administration and how the process works...
✨ Key Highlights
When a company in Kenya enters administration, it signifies severe financial distress, owing more than it can pay. An administrator, a licensed insolvency practitioner, is appointed to manage the company with the goal of rescue, achieving a better outcome for creditors than liquidation, or realizing assets for secured creditors, all governed by Part VIII of the Insolvency Act, 2015.
- A key objective is to maintain the company as a going concern, or achieve a better outcome for creditors than liquidation.
- The Administrator can be appointed by the Court, a holder of a qualifying floating charge, or by the company/directors.
- An example is East African Cables, placed under administration in June 2023 after Equity Bank sought to recover approximately KSh 2.2 billion.
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