In this Act, except where the context otherwise requires—

Whenever by any Act authority has been given, or is hereafter given, to raise any some of money for the purposes mentioned in that Act, the Minister, or the Crown Agents acting on his behalf, may from time to time, as he or they may deem expedient, raise that sum either by debentures or by stock, or partly by debenture and partly by stock.

The principal moneys and interest represented by debentures or stock issued under this Act are hereby charged on and shall be payable out of the Consolidated Fund and assets of Kenya.

When the Minister, or the Crown Agents acting on his behalf, deem it expedient to raise money by debentures, those debentures shall be issued in the United Kingdom on behalf of the Government of Kenya by the Crown Agents, upon the best and most favourable terms that can be obtained, and shall be signed by any one of them on that behalf.

Every debenture issued under this Act shall be for the sum of not less than one hundred pounds sterling.

The debentures and the coupons relating thereto shall be in such form as the Minister, or the Crown Agents acting on his behalf, may direct or approve.

Every debenture and coupon, and the right to receive the principal and interest represented thereby, shall be transferable by delivery.

Every debenture shall, before being issued, be registered in a register book to be kept for that purpose at the office in London of the Crown Agents.

The interest upon the principal represented by each debenture shall run from the day named in that behalf in the debenture, and shall be paid half-yearly on the days named in that behalf in the debenture, at the office in London of the Crown Agents.

The sinking fund shall be applied in the first place in payment of all expenses of, or incidental to, the redemption of the debentures and the cost and expenses of all notices required by this Act to be given, and in the next place, and subject to those payments, in repayment of the principal moneys for the time being represented by the debentures.

In the case of debentures redeemable on a fixed date, the Crown Agents shall place at interest or invest in the purchase of such securities as may be approved by the Minister so much of the money so remitted to them as is not required for the payment of interest for the current half-year, a sinking fund for the final extinction of the debt, and the Crown Agents shall also place at interest or invest in the purchase of like securities the accumulations of interest or the dividends, interest to produce of those investments, and may, from time to time, with the approval of the Minister, change any such investments, and shall hold that fund in trust for the repayment of the principal moneys for the time being represented by the debentures.

In the case of debentures redeemable by annual drawings, the Crown Agents shall place and keep the moneys so remitted to them or so much thereof as may not be required for immediate payments, at interest, and shall hold all such moneys and the accumulation thereon in trust to apply them in the first place to the purchase of the debentures when they can be obtained at a price not exceeding par, and secondly, to the redemption of the debentures by means of annual drawings.

After the date specified in the Act authorizing a loan as that of which the contributions to the sinking fund shall commence in respect of that loan, and so long thereafter as any of the debentures remain outstanding and unsatisfied, the Crown Agents shall in every year, unless the whole of the money applicable in that year to the redemption of debentures has been applied in the purchase thereof, appoint a day in that year for the drawing by lot of the debentures to be redeemed.

If a day is appointed for drawing, the Crown Agents shall give, by advertisement in the London Times newspaper, not less than fifteen days’ previous notice, specifying the day on which, and the hour and place at which, the drawing will take place.

On the day and at the hour and place so specified, the Crown Agents shall hold a meeting, at which the holder of any debenture may be present, and shall then in the presence of such debenture holders as may attend, and of a notary public, draw by lot, out of the whole number of debentures for the time being outstanding, debentures of the specified nominal amount.

The Crown Agents shall thereupon declare the distinguishing numbers of the debentures drawn for redemption, and shall, as soon as may be, by advertisement in the London Times newspaper, specify those numbers and appoint a day, being later as to each debenture than the day on which the then current half-year’s interest hereon is payable, on which the principal moneys represented by the debentures distinguished will be repaid.

On the day so appointed, the Crown Agents shall, at their office in London, on demand, pay to the holders of the debentures drawn for repayment the principal moneys represented by those debentures, with all interest payable thereon up to that day.

From and after the day appointed for the repayment of any debenture, all interest on the principal moneys represented thereby shall cease and determine, whether payment of the principal has been demanded or not.

When the Minister, or the Crown Agents acting on his behalf, deem it expedient to raise money by the issue of stock, then that stock shall be issued in the United Kingdom by the Crown Agents under the Colonial Stock Act, 1877, (40 and 41, Vict., c. 59) of the United Kingdom, upon the best and most favourable terms that can be obtained.

So long as any of the stock remains unredeemed, the Minister shall, in each half-year ending with the day on which the interest on the stock falls due, issue out of the Consolidated Fund a sum equal to one half-year’s interest on the whole of the stock, and shall remit that sum to the Crown Agents at such time as will enable them to pay thereout the then current half-year’s interest on the day when it falls due.

The Crown Agents, shall, for the purpose of forming the sinking fund, from time to time place at interest or invest in the purchase of such securities as may from time to time be approved by the Minister so much of the money so remitted to them as is not required for the payment of interest for the current half-year, and shall also place at interest or invest in the purchase of like securities the accumulations of interest or the dividends, interest or produce of those investments, and may from time to time, with the approval of the Minister, change any such investments, and shall hold that fund in trust for the repayment of the principal moneys for the time being represented by the stock.

In case the sinking funds provided for by this Act are insufficient for the payment of all the principal moneys borrowed under the authority of this Act at the time they become due, the Minister shall make good the deficiency out of the Consolidated Fund and assets of Kenya.

All expenses of or incidental to the management of the sinking fund, or to the payment of the principal moneys borrowed, shall be paid out of the sinking fund.

The securities exchanged or otherwise converted into stock under this Act shall be forthwith cancelled by the Crown Agents, and the debentures surrendered shall be cancelled and transmitted to the Minister.

The trustees of the sinking fund appointed under this Act, and acting under any Act authorizing the issue of any securities which may be exchanged into stock or cancelled or purchased under this Act, shall determine what amount of the sinking fund held by them and created for repayment of those securities shall be released, and in the determination of that question the trustees shall take into consideration the value of the whole investments held by them on account of the sinking funds, the amount of the debt remaining a charge on the sinking funds and such matters as the trustees may think fit to take into account.

So much of the sinking funds as may be released shall either be transferred to the trustees of the stock sinking fund, or be disposed of in such a manner as the Minister with the advice and consent of the National Assembly may direct.

Authority is hereby given for the making of regulations under section 16 of the Colonial Stock Act, 1877, of the United Kingdom, to provide that, in accordance with section 1 of the Colonial Stock Act, 1948, of the United Kingdom, stock issued (whether before or after the passing of the last-mentioned Act) under this Act or the General Loan and Inscribed Stock Act (No. 40 and 41, Vict., c. 59, No. 12 and 13, Geo. 6, Cap. 46 (1948) now repealed) shall be transferable by instrument in writing in accordance with the regulations and in no other manner.

The repeal of the General Loan and Inscribed Stock Act (Cap. 46 (1948)) shall not prejudice the rights of any person who holds stock or bonds in any loan issued under the authority thereof.