Your Partner in Compliant Asset Repossession
Navigating asset repossessions in Kenya requires strict adherence to legal procedures to protect creditors from litigation and ensure a smooth recovery process. Whether for a bank, MFI, or hire-purchase vendor, repossessing an asset—be it a car, truck, or machinery—is the last resort when a borrower defaults. It is not merely about taking back property; it's a legal process governed primarily by the Auctioneers Act (Cap 526) and the underlying security agreement. At Swipe Recoveries Experts Ltd, we specialize in conducting professional, humane, and legally sound repossessions. We act on behalf of financiers to locate, secure, and recover assets efficiently, minimizing potential conflicts and ensuring full compliance with Kenyan law.
The Legal Mandate: The Auctioneers Act and Repossession
The cornerstone of legal repossessions in Kenya is the Auctioneers Act and the rules set by the Auctioneers Licensing Board. It is illegal for anyone other than a licensed auctioneer (or their approved assistants) to carry out a repossession or attach property. The process cannot begin without a formal 'Letter of Instruction' from the creditor (the bank or financier) to a licensed auctioneering firm. For assets under a chattel mortgage, the financier must first issue the required demand notices to the debtor as stipulated in the agreement.
Upon receiving instructions, the auctioneer's first legal step is often to issue a 'Proclamation of Attachment'. This notice informs the debtor of the financier's intent to repossess the asset after a specific period (typically 7-14 days) if the arrears are not cleared. Any repossession conducted without these prerequisite legal steps is considered unlawful and can result in the financier being sued for damages. Our team at Swipe Recoveries ensures every repossession mandate we undertake follows this legal protocol to the letter, safeguarding our clients from legal pitfalls.
The Repossession Process: From Instruction to Secure Storage
Our structured process ensures all repossessions in Kenya are handled with the utmost professionalism and legal diligence. We manage the entire workflow on your behalf.
1. Receipt of Instructions & Verification: We receive a Letter of Instruction from you, along with supporting documents like the logbook copy, chattel mortgage/hire purchase agreement, and the debtor's statement of account. We verify that all pre-requisite demand notices have been served.
2. Issuance of Proclamation: Our licensed auctioneer partners will issue the official Proclamation of Attachment and serve it upon the debtor. This legally notifies the debtor and gives them a final window to regularize their account.
3. Asset Tracing and Location: If the debtor fails to comply and the asset's location is unknown, our expert skip-tracing team gets to work. Using a blend of technology and human intelligence, we locate the asset anywhere in Kenya.
4. The Repossession: Once the proclamation period expires, our trained recovery agents will proceed with the physical repossession. This is done peacefully and professionally. A detailed inventory and condition report of the asset is created and signed on-site.
5. Secure Storage & Reporting: The repossessed asset is immediately transported to a secure, guarded yard. We then furnish you with a comprehensive report, the signed inventory, and photographs, officially confirming the successful repossession.
Debt Recovery & Auctioneering Coverage in Kenya
Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Kenya and all 47 counties in Kenya.
Understanding the Costs of Repossession in Kenya
The costs associated with asset repossessions are primarily dictated by the Auctioneers (Practice) Rules, which provide a schedule of fees. These costs are typically borne by the debtor, but are initially covered by the instructing client (the financier).
The main fees include:
Instruction Fees: A nominal fee for accepting the instruction, as per the legal scale.
Proclamation Fees: A fee for drawing up and serving the proclamation notice, usually a few thousand KES.
Repossession/Attachment Fees: This is the main charge, calculated as a percentage of the asset's value or the outstanding debt. For example, it might be 10% on the first KES 100,000, 5% on the next KES 900,000, and so on.
Disbursements: These are direct costs like towing charges (which can range from KES 8,000 to KES 50,000+ depending on distance and vehicle type), yard storage fees (e.g., KES 1,500 per day), and skip-tracing expenses.
Swipe Recoveries provides a clear and transparent estimate of all anticipated costs before commencing an operation. We ensure all charges are compliant with the official scale of fees.
