Updated 10 November 2026
When debts are too large for a small instalment plan but you still have income or assets to offer, Kenyan insolvency law lets you put a deal to your creditors instead of waiting to be sued or made bankrupt. An Individual Voluntary Arrangement Kenya proposal (IVA) is an offer by a debtor to settle debts on agreed terms. Creditors discuss it and vote on it in meetings, and if most of them approve, it is presented to the court for adoption and becomes binding on all parties. This guide explains the steps, the KSh 30,000 Official Receiver fee and what to prepare.
Source: BRS pages on the Individual Voluntary Arrangement and Official Receiver fees, read on 8 November 2026. The legal basis is the Insolvency Act, 2015. This is general information, not legal advice.
On this page
Individual Voluntary Arrangement Kenya: key facts
| Item | Detail (BRS) |
|---|---|
| What it is | An arrangement where the debtor makes a proposal to creditors to offset debt |
| How it is approved | Discussed in creditors’ meetings, amended where both sides agree, then voted on |
| If approved by a majority | Presented to court for adoption, then binding on all parties |
| Supervisor | The court may appoint the Official Receiver as supervisor or interim supervisor |
| Official Receiver fee | KSh 30,000 |
| Forms | Form No. 8, Form No. 10 (amended), Form No. 11, Form No. 23A and the debtor’s proposal |
| Timeline | Subject to creditors’ approval |
What an Individual Voluntary Arrangement is
BRS describes the IVA as an arrangement where “the debtor makes a proposal to creditors to offset his debt”. The proposal is deliberated on in creditors’ meetings, with amendments where both creditors and the debtor agree. Whether the proposal is viable is decided by a vote. Where most creditors approve it, it goes to court for adoption, and BRS says it is then “binding to all parties”. That includes creditors who voted against it.
That binding effect is the IVA’s main advantage over informal deals with each lender: one negotiated plan covers everyone.
Individual Voluntary Arrangement Kenya fees and forms
The Official Receiver’s fee schedule lists the application for an Individual Voluntary Arrangement at KSh 30,000. The requirements are Form No. 8, Form No. 10 (amended), Form No. 11, Form No. 23A and the debtor’s proposal. The timeline is “subject to creditors’ approval”. Fees are paid at the BRS accounts office after the application is approved. If a private insolvency practitioner acts as supervisor, their fees are separate and agreed privately.
How the Individual Voluntary Arrangement Kenya process works
- Review. A State Counsel goes through the application.
- Approval and fees. If properly drawn, the application is approved, the amount payable is indicated, and you pay the statutory fees.
- Compliance and file. A Certificate of Compliance is generated and a file is opened.
- Court appointment. Where the court appoints the Official Receiver as supervisor or interim supervisor, a State Counsel convenes a creditors’ meeting.
- Investigation. The debtor’s affairs are investigated.
- Negotiation. The meeting works towards terms acceptable to both creditors and debtor.
- Vote. Creditors vote to approve or reject the proposal.
- Report and adoption. The State Counsel reports the outcome to court. An approved proposal is presented to court for adoption.
- Supervision. Where the Official Receiver is confirmed as supervisor, it oversees implementation.
Writing a realistic proposal
Creditors approve proposals that offer them more than the alternatives would. A strong proposal usually sets out:
- a full list of debts and creditors, with balances;
- your income, essential expenses and the surplus available each month;
- any assets you are offering, such as proceeds of a sale;
- the proposed payment period and amounts;
- why creditors would recover more under the IVA than through bankruptcy.
Be honest. The Official Receiver investigates your affairs, and misleading creditors can sink the proposal.
Individual Voluntary Arrangement Kenya vs other options
| Option | Typical fit (BRS) | Official Receiver fee |
|---|---|---|
| Summary Installment Order | Unsecured debt up to KSh 500,000, repaid within about 3 years | KSh 20,000 |
| No Asset Procedure | KSh 100,000 to KSh 4m, no realisable assets | KSh 15,000 |
| Individual Voluntary Arrangement | A negotiated proposal, approved by creditors and adopted by court | KSh 30,000 |
| Debtor’s bankruptcy petition | A trustee manages your property; usually lapses after 3 years if discharge is not opposed | KSh 30,000 |
For smaller debts, see our Summary Installment Order and No Asset Procedure guides.
Risks and practical points
- Creditors can reject the proposal, and the fee is not a guarantee of approval.
- Once adopted, you must keep to the terms. Missing payments can undo the arrangement.
- Secured lenders, such as banks with a charge over property, have their own rights. Take advice on how your IVA treats them.
- Use an advocate or licensed insolvency practitioner for anything but the simplest cases.
- Avoid “debt-clearing” agents who promise guaranteed write-offs.
Frequently asked questions
How much does an Individual Voluntary Arrangement in Kenya cost?
The Official Receiver’s fee schedule lists KSh 30,000 for the application, plus the required forms and the debtor’s proposal.
Does every creditor have to agree?
No. BRS says that where the proposal is approved by a majority of creditors and adopted by court, it is binding on all parties.
Who supervises an IVA?
The court may appoint the Official Receiver as supervisor or interim supervisor, and the Official Receiver then oversees implementation.
How long does approval take?
BRS lists the timeline as subject to creditors’ approval.
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