Maximising Returns on Repossessed & Foreclosed Assets
For professional and compliant asset disposal in Mombasa, banks, micro-finances, and SACCOs need a strategic partner who can navigate the complex regulatory landscape while maximizing financial returns. Swipe Recoveries Experts Ltd provides comprehensive auctioneering and disposal services for all classes of repossessed assets, including motor vehicles, industrial machinery, and foreclosed real estate. We manage the entire lifecycle—from asset seizure and valuation to marketing and public auction—ensuring every step adheres to the stringent requirements of the Banking Act, the Land Act, and the Auctioneers Act. Our focus is on achieving the highest possible market value for your non-performing assets.
The Regulatory Framework: Ensuring Compliant Asset Disposal
Disposing of assets secured against non-performing loans is a legally sensitive process. Failure to comply with statutory requirements can lead to costly litigation and auctions being set aside by the courts. Our process is built on a foundation of strict legal adherence. For real estate, the Land Act, 2012 and the Auctioneers Act, 1996 mandate specific procedures, including serving statutory notices and obtaining a forced sale valuation before proceeding. The law requires a 45-day public advertisement for property auctions.
For movable assets like vehicles and machinery, while the notice periods are shorter, the principles of fairness and transparency remain. We ensure a proper valuation is conducted to establish a reserve price, protecting the bank from claims of selling the asset at an undervalue. Our team, operating from our International Life House office and with a strong presence in Mombasa, liaises with all relevant bodies, including the courts and land registries, to ensure every 'i' is dotted and 't' is crossed. This mitigates legal risk and secures the integrity of the sale, a critical concern for any financial institution.
Our End-to-End Asset Disposal & Auction Process
Our service for banks in Mombasa is a turnkey solution designed for efficiency and maximum value extraction. The process is managed meticulously from start to finish.
1. Asset Securing and Valuation: Upon instruction, we take lawful possession of the asset, whether it's a vehicle from a city yard or a property in Kizingo or Nyali. We then engage professional, independent valuers to provide a current market valuation and a forced sale valuation. This forms the basis for setting a realistic reserve price.
2. Statutory Notices and Marketing: We manage the entire notification process, ensuring all legal notices are served correctly. We then launch a targeted marketing campaign that goes beyond the mandatory newspaper advertisements in publications like The Standard or Daily Nation. We leverage digital platforms and our network of potential buyers to generate maximum interest in the auction.
3. The Public Auction: Our licensed auctioneers conduct a professional and transparent public auction. We are skilled at fostering a competitive bidding environment to drive the price upwards, ensuring the asset sells for the best possible price on the day.
4. Post-Auction Administration: After a successful auction, we handle the collection of proceeds, issuance of necessary documentation (like sale agreements and release letters), and facilitate the transfer of ownership, providing the bank with a comprehensive report and a swift remittance of funds.
Debt Recovery & Auctioneering Coverage in Mombasa, Kenya
Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Mombasa, Kenya and all 47 counties in Kenya.
Understanding Auctioneer Fees for Bank Asset Disposals
The commission structure for auctioneers is guided by the Auctioneers Rules, ensuring a standardized and transparent framework for our banking clients. The fees are typically based on the sale price achieved at auction.
For immovable property (real estate), the commission is on a sliding scale:
3% on the first KES 1,000,000
2% on the next KES 1,000,000
1% on the amount above KES 2,000,000
For movable assets (vehicles, machinery), the commission is typically a flat rate of 10% on the sale price. Additional costs, such as advertising, security, storage, and valuation fees, are also factored in. These are known as 'recoverable disbursements'. For high-volume asset disposal portfolios, Swipe Recoveries Experts Ltd can negotiate a bespoke fee structure that provides value and aligns with your institution's objectives. We provide a full and transparent accounting of all costs and proceeds.
