A. CORPORATE AND COMMERCIAL The Companies Act The stake required for an acquiring party to purchase, before enforcing a squeeze-out, has been restored to 90% from the current stake of 50%. This increase in the squeeze-out threshold seeks to restore the protection of the rights of minority shareholders, especially in listed companies. Companies no longer...
The key reforms introduced by the CRB Regulations on 14th April 2020 include: A minimum threshold of Ksh.1,000 has now been set for negative credit information submitted to CRBs by lenders. Borrower’s information regarding non-performing loans of less than Ksh.1,000 will therefore not be submitted to CRBs, and borrowers that were previously “blacklisted” only for...
By Victor Orandi and Matthew Magare In Kenya, ultra high net-worth individuals are defined as those having a net worth of more than Ksh. 3 billion. In 2018, the number of such individuals increased to 125. Meanwhile, by 2023, a 24% increase is expected amongst those whose worth exceeds Ksh. 100 million.[1]It is estimated that...
By Victor Orandi, Matthew Magare Adequate Healthcare is a global concern and Kenya is no exception. Increasingly the world is turning to ICT to improve healthcare service delivery. Kenya alongside other East African countries increasingly embraces telemedicine. Telemedicine can be defined as the provision of healthcare services, through ICT, whereby the health personnel and the...
By Purity Ngigi An employee’s poor performance is a common reason for the termination of their employment. The Employment Act No. 11 of 2007 of Kenya (the “Act“) provides that the employer must detail every allegation of poor performance before any disciplinary hearing. An employer should support allegations of poor performance with evidence such as...
By Victor Orandi The Employment (Amendment) Bill, 2019 (the “Bill”) seeks to amend the Employment Act 2007 to provide for Pre-adoptive Leave. In its current form, the Employment Act provides for maternity leave to coincide with the birth of a child and does not contemplate adoption. Pre-adoption in this case, as considered under section 157...
By Purity Ngigi In the recent past, a number of high profile criminal cases have dominated the media headlines. Oftentimes, the accused are employees of an organisation. Once arrested the investigation authority usually petitions the court to issue orders for the detention of the accused pending investigation. The reasons given is fear of witness and...
By Victor Orandi A leading cause for summary dismissal of employees in Kenya is acts of theft by employees. Employee theft includes larceny, pilfering of cash, assets, expense fraud and reimbursement for unearned time. According to PWC’s 2018 Global Economic Crime and Fraud Survey: Kenya Report, 75% of business stakeholders indicated that they had experienced a form...
“You’re fired!” The current US President Donald Trump made this line famous when he starred in the Apprentice. A runaway hit reality TV series where he is depicted as CEO firing hapless contestants working for his organisation. While this scene makes for a good TV show, in Kenya, the reality is far less glamorous. In...
Unfortunately whenever civil society and government strike discussions on human rights a certain unease sets in. The mood quickly dampens. On one hand, government mounts a defensive posture and on the other, civil society embarks on an offensive strategy. This gets worse when you throw in the word taxation. Like a spark to an inflammable...
