High Court 6697 of 2015

REPUBLIC OF KENYA IN THE HIGH COURT OF KENYA AT NAIROBI MILIMANI COMMERCIAL &ADMIRALTY DIVISION WINDING UP CAUSE NO. 5 OF 1997 IN THE MATTER OF BUS SERVICES CORPORATION THE STATE CORPORATIONS INSPECTORATE:::::::::::::::::::::::::::::PETITIONER -VERSUSTHE NYAYO BUS SERVICE CORPORATION::::::::::::::::::::::::::::::::RESPONDENT KINYOSI KITUNGI ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::APPLICANT RULING 1. The Winding up Order was issued against the Nyayo Bus Service Corporation (In Liquidation) on 5th May 1997. Since that time, the Official Receiver has never briefed the court on the official status of the Corporation. 2. Pursuant to the demand by one of the Creditors represented by Mr. Agina, the Official Receiver did on 9th October 2014 file a Report on the current status of the Liquidation. I have perused that Report, and it contains gaps and omissions which automatically renders it incomplete. Such shortcomings include:• The Report does not show whether or not there was a Settlement List of Creditors required under Section 232 of the Companies Act. • There is no indication whether the Official Liquidator took custody of the assets of Nyayo Bus Corporation (In Liquidation). • There is no indication whether Public Examination of the Corporation’s Officials was undertaken. • There are no audited Reports for the over 17 years the Liquidation process has been ongoing. • There are no periodic reports given to the court, since the Winding up was ordered by the court. • It also appears that some Creditors have been paid through the Office of the President in a process which is not made clear to some of the Creditors. 3. In that regard, the only sensible thing to do is to require the Official Receiver to do the right thing, and to start the entire process afresh; if need be. In this regard, the court makes the following

page 1 of 2