An Introduction To Kenya Company Law

Kenya company lawis that body of rules which regulates corporations formed under the Kenya Companies Act.A company is a business organisation which earns income by the production or sale of goods or services. This entry also covers rules by which partnerships and trusts are governed in Kenya, together with (albeit in less detail) cooperatives and sole proprietorships.

The most prominent kind of company, usually referred to as a "corporation", is a "juristic person", i.e. it has separate legal personality, and those who invest money into the business have limited liability for any losses the company makes, governed by corporate law.

The largest companies in Kenya are usually publicly listed on stock exchanges around the world. Even single individuals, also known as sole traders may incorporate themselves and limit their liability in order to carry on a business.The formation and winding up of a company in Kenya is governed by the Company’s Act Cap 486 of the Laws of Kenya.

The company legislation in Kenya owes its origin to the English company law. The companies Act of Kenya which came into force on 1stJanuary 1962 is based on English companiesAct of 1948.This Act is still applicable together with later amendments. The Act provides a basic legal framework for the regulation of companies in Kenya. It makes provision for the legal incorporation of companies and lays down rules for their constitution, management and winding up.

A part from the companies Act, there is also case law which has been developed by the courts such doctrines of ultra vires. The caselaw and companies practice have developed so many rules which are useful for filling in the gaps which have not been provided by the companies Act.