Partnerships Act 2012

The Partnerships Act, 2012 is a significant piece of legislation governing partnerships in Kenya. Let’s explore an overview of its key provisions.

1. Short Title and Commencement

   • The Act is officially titled the Partnerships Act, 2012.
   • It came into effect on 15th June 2012.

2. General Principles

   • The Act provides guidelines for the formation, operation, and management of partnerships.
   • It covers both general partnerships and limited partnerships.

3. Limited Liability Partnerships (LLPs)

   • The Act recognizes LLPs, which combine features of partnerships and companies.
   • LLPs offer limited liability to partners while maintaining flexibility.

4. Limited Partnerships

   • The Act also addresses limited partnerships, where some partners have limited liability.
   • Limited partners contribute capital but are not actively involved in management.

5. Registration and Compliance

   • Partnerships must register with the relevant authorities.
   • The Act outlines requirements for partnership agreements, disclosure, and good faith.

6. Liability and Management

   • Partners are liable for partnership debts.
   • The Act specifies rules for sharing profits, management, and accounting.

7. Breakup and Dissolution

   • Provisions cover the breakup of partnerships and winding up.
   • Court powers include removing partners and appointing liquidators.

8. Limited Liability Partnerships (LLPs)

   • The Act defines LLPs and their characteristics.
   • It outlines the role of limited partners and restrictions on their liability.

Learn More details about the Act