How to Dispose Repossessed Assets in Nairobi

A Compliant Guide for Creditors and Financiers

When your goal is to dispose repossessed assets Nairobi lenders must follow a strict legal process to liquidate the items and recover outstanding debt. This process, primarily governed by The Auctioneers Act of Kenya, is not merely about selling an asset; it's about doing so in a transparent, legally compliant manner that protects the rights of all parties involved. Swipe Recoveries Experts Ltd is a licensed auctioneering firm that specializes in the professional and efficient disposal of repossessed assets, from motor vehicles and machinery to office equipment and household goods. We provide an end-to-end solution, ensuring every step from valuation to the final sale by public auction or private treaty is handled with utmost professionalism and adherence to the law.

Legal Framework: Compliance with The Auctioneers Act (Cap 526)

The disposal of repossessed assets in Kenya is not a discretionary process. It is meticulously regulated by The Auctioneers Act (Cap 526) and The Auctioneers Rules. Failure to comply can invalidate the sale and expose the creditor to legal challenges. Key legal requirements that we manage on your behalf include:

1. Issuance of Statutory Notices: Before an asset can be sold, the debtor must be served with specific notices. This includes a 45-day notice of redemption after repossession for chattel mortgages. This gives the debtor a final chance to settle the debt and reclaim their asset.
2. Professional Valuation: The law mandates that a valuation must be conducted by a qualified, independent valuer to determine the asset's fair market value. This value is used to set a 'reserve price'—the minimum price for which the asset can be sold at auction. This crucial step protects the debtor from the asset being sold at an unfairly low price.
3. Public Advertisement of Sale: The intended public auction must be advertised in a newspaper of wide circulation in Kenya. The advertisement must include details of the asset, the date, time, and location of the auction, and the terms of sale. This ensures the auction is transparent and open to the public, fostering competitive bidding.

Our Step-by-Step Asset Disposal Process in Nairobi

As your appointed auctioneer, Swipe Recoveries Experts Ltd manages the entire disposal lifecycle to maximize your recovery while ensuring full compliance.

Step 1: Secure Possession and Storage: Upon instruction, we take secure possession of the repossessed asset. For vehicles, machinery, or other large items, we transport them to our secure, accessible auction yard in Nairobi.
Step 2: Valuation and Condition Assessment: We immediately engage a professional valuer to assess the asset and provide a certified valuation report, which forms the basis for the reserve price.
Step 3: Statutory Compliance and Notification: Our legal team ensures all requisite notices are drafted and properly served upon the debtor and any other interested parties, like guarantors, within the timelines prescribed by law.
Step 4: Marketing and Auction Advertisement: We go beyond the minimum legal requirement. In addition to placing prominent ads in newspapers like the Daily Nation or The Standard, we market the assets to our extensive network of potential buyers, dealers, and investors to generate maximum interest.
Step 5: Conducting the Public Auction: Our licensed auctioneers conduct a professional and transparent public auction in Nairobi. We manage bidder registration, facilitate viewing, and ensure a competitive bidding environment to achieve the best possible price.
Step 6: Post-Sale Administration: After a successful sale, we handle the collection of proceeds, issue sale receipts, and facilitate the smooth handover of the asset to the buyer, including assisting with necessary ownership transfer documents like the NTSA logbook transfer for motor vehicles.

Auctioneering Fees and Methods of Disposal

There are two primary methods to dispose repossessed assets in Nairobi: Public Auction and Private Treaty. Public Auction is the most common, transparent, and legally preferred method. A Private Treaty sale (selling to a pre-identified buyer) is also possible but typically requires either the debtor's written consent or an order from the court to be legally valid.

The fees for our auctioneering services are regulated by The Auctioneers Rules and are fully recoverable from the proceeds of the sale. The primary fee is a commission on the sale price. For movable goods like vehicles and machinery, this is typically up to 10% of the sale price. Other recoverable costs include advertising fees (a newspaper ad can cost between KES 40,000 and KES 90,000 depending on size and publication), valuation fees, storage charges, and security costs. We provide a clear statement of account after the sale, detailing the gross proceeds, all deducted costs, and the net amount payable to you to settle the debt.