Maximizing Value Through Professional Auctions
For professional repossession auction services that guarantee transparency and maximum value, look no further than Swipe Recoveries Experts Ltd. Operating from our central location at International Life House, Mama Ngina Street, we provide a seamless, end-to-end solution for financial institutions looking to dispose of repossessed assets. The auction process is the critical final step in the recovery cycle, and its success depends on strict adherence to legal protocols, strategic marketing, and professional execution. Our team of licensed auctioneers ensures that every auction is conducted in full compliance with the Kenyan Auctioneers Act, transforming repossessed assets into tangible returns for our clients. We manage the entire process, from asset valuation and storage to public advertisement and the final fall of the hammer.
The Auctioneers Act: Legal Compliance in Asset Disposal
The disposal of repossessed goods through public auction in Kenya is not a simple sale; it is a highly regulated activity governed by the Auctioneers Act (No. 5 of 1996) and the supporting Auctioneers Rules, 1997. These statutes are designed to protect all parties—the creditor (our client), the debtor, and the bidders—by ensuring a fair and transparent process. A key legal requirement is the public notification of the intended auction. The law mandates that a sale notice must be advertised in a newspaper with nationwide circulation, such as the Daily Nation or The Standard. This notice must provide at least fourteen (14) days' notice before the auction date for movable property like vehicles.
Furthermore, the Act requires a proper valuation of the asset to establish a reserve price, preventing the asset from being sold at a price that is unfairly low. Our licensed auctioneers, regulated by the Auctioneers Licensing Board, manage every aspect of this compliance. We ensure that the notification of sale is also served upon the debtor, giving them a final opportunity to redeem the asset before the auction. By rigorously following these legal stipulations, Swipe Recoveries protects our clients from legal challenges related to improper disposal and ensures the legitimacy of the entire recovery process.
Our Step-by-Step Repossession Auction Procedure
Our repossession auction services are structured to be methodical and transparent. From the moment a repossessed asset is delivered to our secure yard, a clear, documented process begins:
1. Asset Reception & Valuation: The asset is formally received, and a detailed inventory report is generated. We then engage a professional valuer to determine the current market value and a fair reserve price for the auction.
2. Advertisement and Notification: In compliance with the Auctioneers Act, we prepare and place an auction advertisement in a prominent national newspaper. The ad includes details of the asset, viewing dates, and the time and place of the auction. A copy of this notice is formally served on the debtor.
3. Public Viewing: Prospective buyers are given a designated period to inspect the asset at our secure facility. This transparency helps generate interest and encourages competitive bidding.
4. Conducting the Public Auction: On the scheduled date, our licensed auctioneer conducts the public auction at our premises or another designated public location. The auction is carried out professionally, with the asset being sold to the highest bidder above the reserve price.
5. Finalization and Remittance: After the sale, the successful bidder makes payment. We then deduct the statutory auctioneer’s commission and any other agreed-upon costs (like storage and advertisement) before remitting the net proceeds to you, the client, along with a full reconciliation report.
Auction Fees and Associated Costs in KES
Transparency in costing is a cornerstone of our service. The fees associated with our repossession auction services are guided by the Auctioneers Rules to ensure fairness. The primary cost is the Auctioneer's Commission, which is calculated as a percentage of the sale price. As per the Fourth Schedule of the Rules, this is typically 10% on the first KES 100,000, 5% on the next KES 900,000, and so on, on a sliding scale. This success-based fee aligns our interests with yours—to achieve the highest possible price.
Other direct costs you can expect include:
Newspaper Advertisement Costs: Placing an ad in a national newspaper can cost between KES 8,000 and KES 25,000, depending on the size and publication.Storage/Yard Fees: Secure storage for a repossessed vehicle typically costs between KES 500 and KES 2,000 per day.Valuation Fees: A professional valuation report may cost between KES 5,000 and KES 15,000.
We provide a clear cost breakdown upfront, so you have a full understanding of all potential expenses before the process begins.
