Nairobi, Oct. 5 -- The High Court has blocked creditors from directly using the Insolvency Act to liquidate co-operative societies, ruling that they must first follow the winding-up process prescribed under the Co-operative Societies Act.

The ruling means creditors of financially distressed co-operatives cannot automatically turn to the Insolvency Act when a society defaults on its obligations.

Published by HT Digital Content Services with permission from Business Daily....