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Deputy Chief Justice Philomena Mwilu has called for the strengthening of insolvency laws, highlighting the need for a well-structured legal framework to address financial distress, especially in light of both local and global economic pressures.
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She emphasized that such a framework benefits not only debtors but also creditors.
Speaking at the conclusion of the Employment and Labour Relations Court (ELRC) Judges Conference—held under the theme ‘Insolvency, Labour Rights, and Technology’—Justice Mwilu noted that insolvency law is a specialized and essential area that underpins the broader financial stability of the economy.
She underscored the vital role of judges and judicial officers in implementing a robust insolvency regime, stating that effective resolution of insolvency cases protects creditor rights while also promoting the rehabilitation of businesses.
“Focusing on restructuring rather than liquidation not only aids struggling debtors but also supports credit markets, sustains investor confidence, curbs misconduct prior to insolvency, and enhances asset efficiency—ultimately improving economic performance,” she stated.
Justice Mwilu also highlighted the importance of continuous training for judicial officers. She noted that such training not only sharpens judicial competence and independence but also improves the efficiency of courts and helps them keep pace with evolving legal trends and specialized legal fields.
She linked these efforts to the Social Transformation through Access to Justice (STAJ) blueprint, explaining that empowering judges with knowledge in insolvency law would contribute to fairer, more progressive employment and corporate environments in Kenya.
Encouraging judges to stay current with developments in the fast-evolving legal landscape, she emphasized the importance of upholding the labour rights of both employees and employers as enshrined in Article 41 of the Constitution.
Touching on technology, she noted that a key discussion at the conference focused on AI and its implications for labour and justice. “The intersection of technology, justice, and the digital economy is transforming the workplace, and its impact on labour rights is significant,” she said, expressing confidence that judges are now better prepared to navigate these complex issues.
