Accessing Public Sector Assets for Sale
Participating in government property auctions in Kenya offers a unique opportunity for individuals and businesses to acquire a wide range of assets, from vehicles to office equipment, at competitive market prices. These auctions are the primary method used by government ministries, departments, agencies (MDAs), and parastatals like the Kenya Revenue Authority (KRA) to dispose of surplus, obsolete, or unserviceable assets. As a pre-qualified and licensed auctioneering firm, Swipe Recoveries Experts Ltd is a trusted partner for public entities, conducting these auctions with the transparency and integrity required by law. This guide explains how these auctions work and how you can participate.
Regulatory Framework: The Public Procurement and Asset Disposal Act
The disposal of public assets is not an arbitrary process; it is strictly regulated by the Public Procurement and Asset Disposal Act, 2015 (PPADA) and its subsequent regulations. The primary goal of this Act is to ensure that the disposal of public property is conducted in a fair, transparent, and competitive manner that maximizes economic returns to the State. The Act is overseen by the Public Procurement Regulatory Authority (PPRA), which ensures compliance across all government entities.
Under the PPADA, before any disposal, a public entity must form an internal Asset Disposal Committee. This committee is responsible for identifying assets for disposal, obtaining a formal valuation from a professional valuer, and recommending the most appropriate disposal method. Public auction is the most commonly recommended method for its transparency and potential for competitive bidding. The entity must then engage an auctioneer from its list of pre-qualified service providers. Swipe Recoveries Experts Ltd is proud to be a pre-qualified and compliant partner for conducting government property auctions, adhering to every requirement of the PPADA.
How to Participate in Government Property Auctions
For a member of the public, participating in a government auction is a straightforward process if you know the steps to follow. Here is a practical guide for prospective bidders:
1. Finding Auction Information: Upcoming government auctions are required to be publicly advertised. You can find these advertisements in the MyGov pullout in major daily newspapers (Daily Nation and The Standard), in the official Kenya Gazette, or on the websites of the specific government entity or the appointed auctioneer, like Swipe Recoveries.
2. Asset Viewing: The advertisement will always specify a period for viewing the assets (e.g., a few days before the auction date). It is crucial to attend this viewing. Assets are sold on an "as is, where is" basis, meaning the buyer accepts the asset in its current condition. Thoroughly inspect any vehicle or equipment you are interested in.
3. Registration and Bidding Deposit: To be eligible to bid, you must register with the auctioneer on the day of the auction. This typically requires a form of identification (National ID or Passport) and your KRA PIN certificate. You will also be required to pay a refundable bidding deposit, which is a sign of serious intent.
4. The Auction: On auction day, the auctioneer will present each item (lot). Bidding is open and transparent. The highest bidder at the fall of the hammer wins the lot.
Bidding Deposits, Fees, and Practical Tips (KES)
Understanding the financial requirements is key to a smooth auction experience. The refundable bidding deposit can vary significantly depending on the value of the assets. For a typical government vehicle auction, the deposit might be between KES 50,000 and KES 100,000 per vehicle. This deposit is immediately refunded to unsuccessful bidders after the auction. For the successful bidder, the deposit is applied towards the purchase price.
Upon winning a bid, the successful bidder is usually required to pay a portion of the purchase price immediately (e.g., 25% of the hammer price), with the balance payable within a short, specified period (often 24 to 48 hours). It is important to note that the hammer price is often exclusive of taxes. The buyer is typically responsible for paying any applicable Value Added Tax (VAT) and all costs associated with the transfer of ownership, such as logbook transfer fees for vehicles. Always read the terms and conditions of sale in the auction catalogue carefully before bidding.
