Section 164 to 175 of the Kenya Companies Act provide for the inspection of a companies affairs by the Registrar of Companies.
Section 164, the Registrar may appoint inspectors on the application of either not less than 200 members or of members holding not less than one tenth of the issued shares of the company.
Section 165, the Registrar must appoint inspectors if:
a) The company by special resolution or
b) By court order
Declare that the company's affairs should be investigated.
Section 166 empowers the High court to appoint inspectors if it appears that there are circumstances suggesting that:
a) the business is being run with intent to defraud creditors or in a manner oppressing to any part of its members or for any fraudulent or unlawful purpose, or
b) that persons concerned with the company's formation for the management of its affairs have in connection therewith been guilty of fraud, misfeance or other misconduct towards it or its members, or
c) that its members have not been given all the information with respect to its affairs which they might reasonably expect, or
(d) that it is desirable to do so.
Section 166: This section gives inspectors power to investigate affairs of investigated company's holding or subsidiary companies if they consider it relevant to their enquiries.
A team of inspectors usually consists of one accountant, and one advocate. Investigations usually take the form of a very extensive audit involving much use of verification, analytical review and detailed tests. The work can often take many years so it is usual for the inspectors to issue interim reports.