Your Trusted Partner for Effective Debt Collection
Professional overdue account recovery is essential for maintaining the cash flow and financial stability of any business. When invoices age and accounts become delinquent, it directly impacts your bottom line. Swipe Recoveries Experts Ltd, operating from the heart of Nairobi's business district at International Life House, provides a comprehensive debt collection service that is both assertive and compliant. We manage the entire recovery process, from initial contact to legal enforcement, allowing you to focus on your core business. Our mission is to convert your outstanding receivables into cash in the most efficient and professional manner possible, safeguarding your business from unnecessary write-offs and financial strain.
Legal Foundations of Debt Collection in Kenya
The process of overdue account recovery in Kenya is grounded in contract law. The Law of Contract Act (Cap 23) forms the basis of the debtor-creditor relationship, whether it arises from an unpaid invoice, a loan agreement, or a service contract. A crucial piece of legislation is the Limitation of Actions Act (Cap 22), which dictates the timeframes within which a creditor can legally pursue a debt. For most contract-based debts, a claim must be filed in court within six years from the date the debt became due. Exceeding this period renders the debt 'statute-barred' and legally unenforceable.
For smaller, undisputed debts under KES 1 Million, the Small Claims Court Act, 2016 has created a faster and more accessible judicial process. This court encourages amicable settlement and informal procedures, making it a powerful tool for swift recovery. For larger or more complex claims, matters are filed in the Magistrates' Courts or the High Court, following the stringent procedures laid out in the Civil Procedure Code. Our team is proficient in navigating all these legal channels to ensure the most appropriate and effective strategy is used for your specific case.
The Swipe Recoveries 3-Stage Recovery Process
We employ a structured, escalating process to maximize recovery rates while minimizing costs. This process ensures every effort is made to collect amicably before resorting to more costly legal measures.
Stage 1: Amicable & Pre-Legal Collection. This is the foundation of our service. Our team initiates contact with the debtor through a series of formal demand letters, emails, phone calls, and SMS reminders. The goal is to open a line of communication, understand the reason for non-payment, and negotiate a full settlement or a structured payment plan. This stage resolves the majority of cases without legal intervention.
Stage 2: Field Visits & Asset Tracing. If initial communications are ignored, our field agents may conduct a physical visit to the debtor's last known residence or place of business. This demonstrates our commitment to recovery and is often effective in compelling payment. In parallel, we can initiate skip tracing and preliminary asset searches to assess the debtor's ability to pay, which informs the viability of legal action.
Stage 3: Legal Escalation. When all pre-legal efforts are exhausted, we provide a detailed report and recommend legal action. With your approval, our affiliate legal partners will file a claim in the appropriate court. We manage the process closely, from filing the plaint to obtaining judgment and proceeding with execution, which may involve warrants of attachment and sale.
Fee Structure: Performance-Based Collections (KES)
Our overdue account recovery services are primarily based on a 'no-win, no-fee' commission model. This means we only earn when we successfully recover your money, aligning our interests directly with yours. This performance-based structure makes professional debt collection accessible to businesses of all sizes.
Our commission rates are competitive and tiered based on the age and nature of the debt, but generally fall within the following range:
Standard Commercial/Consumer Debts:15% to 30% of the amount recovered.
Older or more complex debts may attract a slightly higher commission, which is always agreed upon upfront.
There are no hidden charges. A small file opening fee may be required for certain portfolios to cover administrative setup. If litigation is required, any court fees and legal costs are discussed and approved by you in advance. We provide full transparency on all potential costs throughout the engagement.
