Reframing insolvency frameworks and ecosystems

The Insolvency Act 2015 established the core tools and processes for resolving corporate distress, including company voluntary arrangements (CVAs), administrations, and liquidations. 

Part I of our two-part introductory article on insolvency revisits the foundational pillars of an effective insolvency ecosystem—clear laws, robust procedures, and capable institutions.

As we reflect on a decade of operation, experience in the Kenyan market indicates that timely and transparent interventions help preserve value, support viable restructurings, and enable efficient capital reallocation. Governance, financial management, and disciplined creditor engagement are central to successful outcomes.

Looking forward, the focus is on strengthening capacity (judiciary, regulators, and practitioners), expanding cross-border coordination, and destigmatising insolvency and encouraging proactive interventions in cases of corporate stress and distress will build business resilience and drive inclusive growth.

You can access the full part 1 below.