Category: corporate and commercial law
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In Kenya, share capital reorganization is provided for under the Companies Act which provides clear guidelines on how businesses can restructure their share capital effectively and legally. Below, we simplify the key aspects of share capital reorganization for businesses and shareholders. What Is Share Capital Reorganization? Share capital reorganization refers to the process of altering…
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Contracts are fundamental to both business and personal transactions. They govern the sale of land, goods, and services, and establish various business relationships, such as partnerships, joint ventures, and employer-employee relationships. A well-drafted agreement defines the parties, their rights, roles and responsibilities and sets clear expectations. Further, it provides the parties with legal protection and…
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In an unfortunate turn of events, employees are finding PAYE liabilities applied to their individual accounts. This is discovered when the employee attempts to make an application for a Tax Compliance Certificate (TCC). Through this action, the Kenya Revenue Authority (KRA) is in effect holding the employee accountable or liable for unpaid PAYE liabilities. In…
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A foreigner can register a company in Kenya in various ways. Whether you are considering building a new business or expanding an existing business into Kenya, in this article we will discuss the various options available to you. Kenya’s economy is booming, it is a getaway to the vibrant East African market and offers a…
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Introduction In Kenya, directors’ duties and responsibilities are outlined in the Companies Act, which emphasizes their fiduciary responsibilities, duty of care, and accountability to shareholders. Directors steer the success of a company and are tasked with making strategic decisions, safeguarding the company’s assets, and ensuring compliance with legal and regulatory requirements. Understanding these duties is…
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A Corporate Journey Gone Wrong Imagine a small business, Kwetu Ltd. It was established by a few friends who met at the University, pooling resources to launch a promising venture based on a project they had begun for a business competition. In the early days, things went smoothly, and the team barely thought about the…
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The cost of registering a foreign company in Kenya is our most Frequently Asked Question and in this article, we aim to provide as adequate an answer to the question as possible. Registering a foreign company in Kenya is a crucial step for international businesses looking to enter the hub of East African business. This article…
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There are two distinct types of companies available for registration in Kenya: Limited and Unlimited companies. The Companies Act provides the legislative framework for the incorporation, registration, operation, management and regulation of companies and the primary source of law on companies. While you may not be able to read through the extensive Act, members are…
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Introduction Several steps need to be taken before filing an official application (form CR 1) for the registration of a company. These steps help ensure that the registration process goes smoothly and that the business is set up for long-term success. The company registration process is governed by the Registration of Business Names Act, the…
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There are five main company registration requirements in Kenya: the documents required during the registration process. Also referred to as incorporation, the registration of a company is a legal process governed by the Companies Act No.17 of 2015. The Act also provides for the operation, management and regulation of all The Different Types of Companies…
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Debt collection and debt recovery are critical processes for individuals and businesses in Kenya facing unpaid obligations. Many people use the terms interchangeably, but they refer to different procedures. This article explains both, detailing the steps involved, the laws governing these processes, and how a lawyer can assist. What is Debt Collection? Debt collection is…
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In Kenya, the debt collection process is a structured procedure. It is aimed at recovering outstanding debts while adhering to legal requirements. Understanding this process is essential for creditors looking to navigate the complexities of debt recovery effectively. In this article, we delve into the steps involved in the debt collection process. We also highlight…