Your Guide to Professional & Compliant Auctioneering
When you need to hire auctioneers in Nairobi, whether for executing a court order, distress for rent, or selling repossessed assets, choosing the right firm is paramount. A licensed and experienced auctioneer ensures the process is conducted legally, efficiently, and in a manner that maximizes your returns while minimizing legal risks. Swipe Recoveries Experts Ltd is a fully licensed auctioneering firm, regulated by the Auctioneers Licensing Board of Kenya. We provide a comprehensive range of auctioneering services, all conducted in strict adherence to the Auctioneers Act. Our team combines legal expertise with practical experience to manage every stage of the process, from proclamation to the final fall of the hammer, ensuring your objectives are met professionally.
Understanding the Law: The Auctioneers Act (CAP 526)
The decision to hire auctioneers brings you directly under the purview of The Auctioneers Act (CAP 526) and The Auctioneers Rules. This is the primary legislation governing all auctioneering activities in Kenya. It is enforced by the Auctioneers Licensing Board, a statutory body that licenses, regulates, and disciplines all auctioneers. A crucial first step for any client is to verify that the auctioneer they intend to hire holds a valid, current license. This can be done through the Board's public register. Hiring an unlicensed individual is illegal and will invalidate the entire process, exposing you to severe legal and financial penalties.
The Act clearly defines the powers and limitations of an auctioneer. For instance, an auctioneer cannot attach goods without a legal basis, such as a Court Warrant of Attachment and Sale, a letter of instruction based on a chattel mortgage (like for a car loan), or instructions from a landlord for distress for rent. The law also prescribes the exact procedure an auctioneer must follow, including the mandatory periods for Proclamation Notices and the requirement for public advertisement of sales. At Swipe Recoveries, our licensed auctioneers operate with an unwavering commitment to these legal requirements.
The Procedure for Engaging an Auctioneer
The process of engaging an auctioneer is formal and follows a legally mandated sequence of events. Understanding these steps is crucial for any creditor or landlord.
Step 1: Letter of Instruction. You must provide the auctioneer with a formal letter of instruction. This must be accompanied by the underlying legal document authorizing the action, for example, a court decree and warrant, a chattel mortgage, or a tenancy agreement in the case of rent arrears.
Step 2: Proclamation. Upon receiving instructions, the auctioneer's first action is to 'proclaim' the debtor's movable goods. They will visit the debtor's premises, prepare an inventory of items whose value is estimated to cover the debt and costs, and issue a Proclamation Notice. This notice gives the debtor a specific period (e.g., seven days) to pay the debt, failing which the proclaimed goods will be attached and removed.
Step 3: Attachment and Sale. If the debtor fails to pay within the proclamation period, the auctioneer will return to 'attach' and remove the goods to a secure store. Following attachment, the auctioneer must advertise the intended sale by public auction in a newspaper, giving at least seven days' notice for movable goods. The auction is then conducted on the specified date.
Regulated Costs & Fees When You Hire Auctioneers
The fees and costs an auctioneer can charge are not arbitrary; they are strictly regulated by the schedule set out in The Auctioneers Rules. This transparency protects the public and ensures charges are fair and predictable. When you hire auctioneers, you should expect a clear breakdown of these potential costs.
Key regulated fees include:
- Proclamation Fees: A fixed fee for issuing the proclamation notice, as stipulated in the Rules.
- Attachment Fees: A separate fixed fee for the act of attaching and removing the goods.
- Commission: The auctioneer’s primary fee is a commission calculated as a percentage of the proceeds from the sale. For movable goods, this is typically on a sliding scale, often starting around 10%.
- Disbursements: These are the out-of-pocket expenses incurred by the auctioneer, which are reimbursable by the client. They include costs for transport to remove the goods, hiring security (guards) to protect attached items, storage charges in a secure warehouse, and the cost of the newspaper advertisement. We provide a detailed and itemized invoice for all fees and disbursements.
