Application of discharge
Application may be made at any time after adjudication, but cannot be heard until the conclusion of the public examination. Notice of the hearing must be given in the Kenya Gazette, and 14 days' notice given to every creditor. The Official Receiver must report to the court on the bankrupt's conduct, and the bankrupt is entitled to a copy of this report at least seven days before the hearing.
The court may:
- Grant an absolute and immediate discharge;
- Refuse the application; or
- Grant a suspended or conditional discharge;
In particular, the court may only grant a discharge suspended for a definite period or until at least Shs 50 per Shs 100 has been paid to all creditors, or a conditional discharge subject to judgement being entered against the bankrupt for all or part of the unpaid balance of provable debts, if either -
- The bankrupt has been convicted of a bankruptcy offence, or
- Any of the "facts" set out on s.29 (3) have been proved against him; such "facts" include -assets less than Shs 50 per Shs 100 of unsecured liabilities; failing to keep proper books of account; knowingly trading when insolvent; gambling; extravagant living or neglect of business; frivolous litigation; previous bankruptcy, composition or scheme; fraud or fraudulent breach of trust.