Premier Repossession Firm in Mombasa

Compliant and Effective Asset Repossession in Mombasa

When seeking a repossession firm in Mombasa, lenders and financiers must prioritize professionalism, speed, and strict legal compliance. Asset repossession, particularly for vehicles and equipment, is a high-stakes process governed by the Auctioneers Act of Kenya. Any misstep can result in criminal charges, civil liability, and significant reputational damage. Swipe Recoveries Experts Ltd is a leading asset recovery and repossession firm, providing services across Mombasa and the coastal region. We operate with a deep understanding of the legal framework, ensuring that every repossession is conducted ethically and lawfully. Our goal is to secure your asset swiftly, minimize your risk, and maximize your recovery value from defaulted loans.

The Legal Mandate for Asset Repossession in Kenya

Asset repossession in Kenya is not an unregulated activity; it is a formal legal process that must be executed by specific, licensed professionals. The cornerstone of this regulation is the Auctioneers Act (No. 5 of 1996) and the accompanying Auctioneers Rules. This legislation explicitly states that the seizure and sale of a debtor's movable property to settle a debt must be carried out by a licensed auctioneer.

The legal authority to repossess stems from the underlying credit agreement, such as a hire-purchase agreement, a chattel mortgage, or a logbook loan, which must contain a repossession clause. The Chattels Transfer Act (Cap 28) provides the legal basis for using movable assets like vehicles as security. Before any action is taken, the lender must ensure the loan is in default as per the agreement's terms. The entire process is overseen by the Auctioneers Licensing Board, which ensures that all practitioners operate within the law. Hiring an unlicensed individual is illegal and invalidates the repossession, exposing the lender to severe legal consequences. Our firm works exclusively with licensed and experienced auctioneers to guarantee full compliance.

The Professional Repossession Process in Mombasa

A lawful repossession follows a clear, multi-step process designed to protect the rights of all parties involved. As your chosen repossession firm in Mombasa, Swipe Recoveries manages this entire workflow with precision.

Step 1: Letter of Instruction & Notification. Our process begins when the lender issues us with a formal letter of instruction, along with copies of the credit agreement, logbook, and proof of default. We then ensure the debtor is served with the requisite statutory notice, giving them a final opportunity to settle the arrears.

Step 2: Proclamation and Seizure. If the debt is not cleared within the notice period (typically 7-14 days after proclamation), our licensed auctioneer will proceed to locate and seize the asset. This must be done peaceably and during daylight hours. We often liaise with the local Kenya Police Service from the nearest station (e.g., Central Police Station Mombasa, Nyali Police Station) to ensure the process is orderly and to prevent breaches of the peace.

Step 3: Secure Storage and Valuation. Once repossessed, the asset is transported to a secure, insured yard in Mombasa. A formal valuation is then conducted by a certified valuer to determine the asset's current market value. The debtor is notified of this valuation.

Step 4: Statutory Sale. Following the repossession, another notice (typically 45 days for vehicles under hire purchase) is given to the debtor before the asset can be sold. The sale is usually conducted via a public auction, which we organize and manage to ensure the best possible price is achieved to offset the outstanding loan balance.

Repossession Costs and Fee Structure in Mombasa (KES)

The costs associated with hiring a repossession firm are largely regulated by the Auctioneers Rules, ensuring transparency and fairness. Lenders should be aware of the various fees that constitute the total cost of repossession. These costs are typically recoverable from the proceeds of the sale of the repossessed asset.

The primary fees include:

Instruction & Proclamation Fees: A fee for accepting the instruction and issuing the initial proclamation notice. This can range from KES 5,000 to KES 15,000.
Seizure & Transport Fees: Costs associated with the physical act of seizing the asset and transporting it to a secure yard. This varies based on location and difficulty.
Storage & Security Fees: A daily fee for securely storing the repossessed asset. In Mombasa, this can be between KES 1,000 to KES 2,500 per day for a standard vehicle.
Auctioneer's Commission: This is the main fee, calculated as a percentage of the asset's sale price. The rules typically prescribe a sliding scale, for example, 10% on the first KES 100,000, 5% on the next KES 900,000, and so on.

At Swipe Recoveries, we provide a detailed cost projection upfront. We work to manage these costs efficiently to maximize the net amount recovered for our clients.