Pre-Pack Administrations In Kenya

Driven by the enactment of the Insolvency Act 2015, Kenya's corporate insolvency and restructuring infrastructure has grown in leaps and bounds. The insolvency landscape in Kenya now includes a progressive approach to corporate financial distress with the introduction of administration as the primary business rescue process for companies undergoing financial hardship.

Administration is a procedure which allows for either the reorganisation of a distressed company or the realisation of its assets with the benefit of a statutory moratorium that prevents creditors from taking enforcement action against the company.¹ The process is managed by an administrator who takes control of the company's affairs from its directors to achieve one or more of the three objectives laid down under the Insolvency Act.