Your Trusted Partner in Asset Realisation
Finding reliable auctioneers private lenders can trust is critical for effective debt recovery outside the traditional banking sector. Private lenders, SACCOs, and micro-finance institutions require a partner who understands their unique position and the nuances of realising securities for defaulted loans. Swipe Recoveries Experts Ltd, operating from International Life House, Mama Ngina Street, provides specialised, fully compliant auctioneering services designed to maximise returns for private lenders. We navigate the intricate legal landscape to ensure every step, from proclamation to sale, is conducted with precision and professionalism. Our dedication is to transforming non-performing assets into liquid capital for our clients, ensuring results that matter.
The Legal Framework: Auctioneering Compliance for Private Lenders
The success and legality of an auction for a private lender hinge on strict adherence to Kenyan law. The primary governing statute is the Auctioneers Act, Cap. 526 of the Laws of Kenya, and the accompanying Auctioneers Rules. These regulations stipulate the entire process, including the licensing of auctioneers, the fees chargeable, and the procedures for attachment and sale. For private lenders, the type of security held determines the recovery path. If the loan was secured by movable property (chattels) like vehicles or equipment, the Chattels Transfer Act is paramount. A properly registered chattel mortgage allows the lender to instruct an auctioneer to repossess and sell the asset upon default without an initial court order, provided the loan agreement's clauses are clear.
For immovable property (land and buildings), the Land Act and the Land Registration Act govern the process. A lender holding a charge over a property must issue the requisite statutory notices before they can exercise their statutory power of sale. This is a crucial step where non-compliance can invalidate the entire auction. Swipe Recoveries ensures that all legal prerequisites, including serving the correct notices and obtaining necessary court orders (like warrants of attachment and sale where applicable), are meticulously fulfilled. Our team is vetted and licensed by the Auctioneers Licensing Board, guaranteeing that every action we take is legally sound and defensible, protecting the lender from potential litigation and financial loss.
Step-by-Step Procedure: From Default to Successful Auction
When a private lender engages Swipe Recoveries, we initiate a clear, structured procedure to ensure efficiency and transparency. The process is tailored to the specific asset and security instrument but generally follows these key stages:
1. Instruction & Documentation Review: The lender provides us with a letter of instruction along with all relevant security documentation. This includes the loan agreement, the security instrument (e.g., registered chattel mortgage, logbook, or land title with a charge), and evidence of default. Our legal team reviews these documents to confirm the lender's right to recover.
2. Proclamation and Repossession: For movable assets, our licensed auctioneers will proceed to the debtor's premises to issue a proclamation notice. This notice lists the assets to be seized and gives the debtor a specific period (typically seven to fourteen days as per the law) to settle the debt. If the debt remains unpaid, we proceed with lawful repossession of the proclaimed goods.
3. Valuation, Advertising, and Sale: Once the asset is secured, we engage a professional valuer to determine its current market and forced sale value. This forms the basis for the reserve price at auction. As per the Auctioneers Rules, we then place an advertisement for the public auction in a newspaper with nationwide circulation, detailing the goods, viewing dates, and auction venue. The auction is then conducted publicly, with the asset sold to the highest bidder, ensuring transparency and maximising the sale proceeds for the lender.
Transparent Costs & Fees for Private Lender Services
Understanding the cost of recovery is vital for private lenders. At Swipe Recoveries, we believe in complete transparency. Our fees are structured in accordance with the Auctioneers Rules, which provide a clear scale of charges. The primary fee is the auctioneer's commission, calculated as a percentage of the sale proceeds. Typically, this is 10% on the first KES 100,000, with a sliding scale for higher amounts. This structure aligns our success with yours.
Beyond the statutory commission, there are disbursement costs, which are necessary expenses incurred during the recovery process. These are charged back to the client at cost. Common disbursements include:
Newspaper Advertisement Costs: A mandatory expense for publicising the auction (e.g., KES 20,000 - KES 50,000 depending on publication and size).
Storage & Security: Costs for securely storing repossessed goods, especially vehicles, before the auction.
Repossession Costs: Expenses for transport, locksmiths (if needed), and security during the repossession exercise.
Valuation Fees: Charged by the professional valuer.
We provide a detailed estimate of these costs upfront and maintain meticulous records. A final statement of account is issued post-auction, detailing the sale price, all commissions, and disbursements, ensuring the lender has a clear financial picture of the engagement. Contact us at +254 722 474 032 for a no-obligation consultation.
