A Detailed Breakdown for Lenders and Debtors

Calculating the exact repossession costs in Kisumu is a critical step for both lenders seeking to recover an asset and debtors wanting to understand their liability. These costs are not arbitrary; they are a combination of legally gazetted fees and variable operational expenses. Swipe Recoveries Experts Ltd believes in complete transparency, providing a clear breakdown of all charges involved in repossessing an asset, such as a vehicle or machinery, in Kisumu County. This guide will detail the statutory auctioneer fees, typical operational costs like towing and storage, and provide a practical example to help you budget effectively for a repossession exercise.

Statutory & Regulated Fees: The Auctioneers Rules

The foundation of repossession costs is the fee schedule set by the Auctioneers Act and its accompanying Rules. These fees are legally mandated and non-negotiable, ensuring a standard of fairness and preventing overcharging. When you engage a licensed auctioneer from Swipe Recoveries for a repossession in Kisumu, these are the primary statutory fees that will apply.


Proclamation Fee: This is a fixed charge for the auctioneer to formally issue a proclamation notice on the asset. As per the current schedule, this can be around KES 4,000 for higher-value debts.
Attachment & Repossession Fee: A fee is chargeable for the act of physically taking possession of the asset after the proclamation period has expired without payment.
Commission on Sale: If the asset is sold at auction, the auctioneer is entitled to a commission. For movable assets like cars, this is set at 10% of the sale price. For immovable property (land/buildings), the commission is 3% on the first KES 1 million and 1.5% on the balance.

It is crucial to note that these fees are charged for services rendered in the execution of legal instructions. Engaging a licensed firm like Swipe Recoveries ensures all these charges are applied correctly and as per the law.

Repossession costs Kisumu
Swipe Recoveries Experts Ltd

Variable & Operational Repossession Costs in Kisumu

Beyond the statutory fees, several other operational costs contribute to the total repossession costs in Kisumu. These can vary significantly based on the specific circumstances of the repossession.


Repossession Agents' Fee: This is the fee paid to the field agents who locate and physically secure the asset. In and around Kisumu, this can range from KES 15,000 to KES 40,000 depending on the asset's location (e.g., within Kisumu city vs. a remote part of the county) and the difficulty of the task.
Towing & Transportation: For vehicles, the cost of towing from the point of repossession to a secure yard in Kisumu is a key expense. This can range from KES 5,000 to KES 20,000.
Storage Yard Fees: Once repossessed, the asset must be kept in a secure, insured yard. Daily storage fees in Kisumu typically range from KES 800 to KES 2,000 per day. The asset is usually stored for at least 21-45 days to allow for legal notices and auction advertising.
Security Fees: In some cases, additional security may be required to guard the asset before it can be moved, incurring extra costs.
Advertising Costs: The cost of placing the mandatory auction advertisement in a national newspaper can be between KES 20,000 and KES 40,000.

Debt Recovery & Auctioneering Coverage in Kisumu, Kenya

Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Kisumu, Kenya and all 47 counties in Kenya.

Example: Estimated Cost of Repossessing a Car in Kisumu

A calculator and documents outlining repossession costs in Kisumu

To provide a practical perspective on repossession costs in Kisumu, let's look at a hypothetical scenario of repossessing a saloon car valued at KES 800,000.


Proclamation Fee: ~KES 4,000
Repossession Agent Fee: ~KES 20,000
Towing to Yard in Kisumu: ~KES 10,000
Storage Fees (30 days @ KES 1,000/day): KES 30,000
Newspaper Advertisement: ~KES 25,000
Valuation Report: ~KES 5,000
Sub-total (Pre-Auction Costs): ~KES 94,000

If the car sells at auction for KES 700,000, the auctioneer's commission would be 10% of that amount:

Auctioneer's Commission: KES 70,000

Therefore, the total estimated repossession cost would be approximately KES 164,000. This entire amount is typically added to the borrower's outstanding loan balance.

Frequently Asked Questions

Who is legally responsible for paying the repossession costs?
The borrower is ultimately responsible for all reasonable costs associated with the repossession and sale of the asset. These costs are added to the outstanding loan balance. If the auction proceeds are not enough to cover both the loan balance and the repossession costs, the borrower remains liable for the shortfall.
Can I negotiate the repossession costs with the auctioneer?
The statutory fees, like the proclamation fee and the auctioneer's commission percentage, are fixed by law and cannot be negotiated. However, an efficient and professional firm like Swipe Recoveries can help manage and minimize the variable costs, such as storage and transport, by acting swiftly and using a network of cost-effective partners.
How can I get an exact quote for repossession costs in Kisumu?
To get a precise and transparent quote for your specific situation in Kisumu, you should contact Swipe Recoveries Experts Ltd directly. By providing details of the asset, its likely location, and the nature of the debt, our team can give you a detailed and reliable estimate of all the costs you can expect to incur.