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The High Court’s decision to declare siblings Marianne Nyokabi Kamotho and David Waweru Kamotho bankrupt over unpaid legal fees has brought renewed attention to what bankruptcy means for an individual in Kenya.
The siblings were facing outstanding legal fees of Sh4.83 million arising from a long-running dispute over the estate of their late father, former Cabinet minister John Joseph Kamotho. Nyokabi’s outstanding balance was Sh3.74 million, while Waweru owed Sh1.09 million.
The court’s orders mean the matter is no longer simply about an unpaid debt. Bankruptcy sets in motion a legal process through which a person’s assets, debts and dealings with creditors are managed under the Insolvency Act.
So, what exactly happens…