Expert Valuation and Auctioneers Services in Kenya

Maximising Asset Value with Integrated Expertise

For a streamlined and effective asset disposal process, engaging a firm that offers integrated valuation and auctioneers in Kenya is the most strategic choice. This dual capability ensures a seamless transition from accurately determining an asset's worth to successfully selling it for the highest possible price at a public auction. An accurate valuation is the bedrock of a successful auction, as it informs the setting of a realistic reserve price. Without it, assets risk being sold for less than they are worth or failing to sell at all. Swipe Recoveries Experts Ltd provides a cohesive service, combining certified valuation expertise with licensed auctioneering prowess to deliver optimal results for banks, legal firms, and individuals across Kenya.

The Dual Regulatory Framework: Valuers Act & Auctioneers Act

The practice of valuation and auctioneering in Kenya is governed by two distinct but interconnected pieces of legislation: the Valuers Act (Cap 532) and the Auctioneers Act (Cap 526). Understanding this dual framework is crucial for anyone seeking to dispose of assets legally and effectively.

The Valuers Act dictates that any person carrying out a valuation of land, buildings, machinery, or other assets must be registered by the Valuers Registration Board and be a member of a professional body like the Institution of Surveyors of Kenya (ISK). This ensures that valuations are conducted according to professional standards, producing reliable reports on an asset's 'Market Value' and 'Forced Sale Value' (FSV).

Subsequently, the Auctioneers Act governs the entire process of selling assets through public auction. It mandates that only a licensed auctioneer, authorized by the Auctioneers Licensing Board, can conduct an auction. The Act specifies strict rules regarding proclamation, advertisement (including in newspapers and sometimes the Kenya Gazette), the conduct of the auction, and the handling of proceeds. Swipe Recoveries Experts Ltd navigates both these legal landscapes with expertise, ensuring every valuation is certified and every auction is fully compliant, thereby protecting our clients from legal risks and financial losses.

The Process: From Asset Valuation to Successful Auction

Our integrated approach simplifies the complex process of asset disposal into a clear, manageable workflow. We handle every step with professionalism and a focus on maximizing your returns.

The combined valuation and auctioneering process includes:

Instruction and Asset Inspection: Upon receiving your instruction, our certified valuers conduct a thorough physical inspection of the asset, whether it's real estate, a vehicle, or industrial machinery.
Formal Valuation Report: We prepare a detailed valuation report. This key document establishes the Open Market Value (OMV) and the Forced Sale Value (FSV), which is crucial for setting the auction's reserve price as per legal requirements.
Auction Strategy & Reserve Price Setting: In consultation with you, we use the valuation report to set a strategic reserve price—the minimum price the asset can be sold for at the auction.
Proclamation and Advertisement: Our licensed auctioneers issue the legal proclamation and manage the mandatory advertising period. We create compelling advertisements for placement in national newspapers to attract a wide pool of potential bidders.
Conducting the Public Auction: We professionally manage the entire auction event, encouraging competitive bidding to drive the price above the reserve and achieve the true market value.
Post-Auction Management: After a successful sale, we handle the collection of the deposit and balance of the purchase price, facilitate the handover of the asset to the buyer, and provide you with a comprehensive account of the sale proceeds.

Fees for Valuation and Auctioneering Services in Kenya

The costs for combined valuation and auctioneering services in Kenya are largely structured according to the legal scales of fees provided in the Valuers Act and the Auctioneers Act. This provides clients with transparency and predictability.

Here’s a general breakdown:

Valuation Fees: These are governed by the Valuers (Forms and Fees) Rules. The fee is typically calculated on a sliding scale as a percentage of the asset's value. For example, for a property valued at KES 5,000,000, the valuation fee might be in the region of KES 40,000 - KES 60,000. A separate fee schedule applies for assets like motor vehicles and machinery.
Auctioneer's Commission: The auctioneer's commission is their fee for selling the asset. As per the Auctioneers Rules, this is a percentage of the final sale price. For movable assets (like vehicles), it can be up to 10% on the first KES 100,000, with a sliding scale downwards for higher values. For immovable property (land/buildings), the commission is lower, often around 3%.
Disbursements: These are the out-of-pocket costs required to facilitate the auction, primarily advertising costs. Placing an auction ad in a major Kenyan newspaper can cost between KES 30,000 and KES 150,000, depending on the size and publication.