Swift, Compliant, and Effective Asset Recovery
As premier asset repossession experts in Nairobi, we understand the urgency and sensitivity required when recovering assets for lenders. For banks, micro-finances, and Saccos, a defaulted loan on a financed asset like a vehicle or machinery represents a significant potential loss. The key to mitigating this loss is a swift, legal, and professional repossession process. Swipe Recoveries Experts Ltd specializes in this field. We act decisively on your instruction, navigating the legal complexities of the Hire-Purchase Act and Chattels Transfer Act to secure your asset quickly and safely, paving the way for recovery and disposal.
The Legal Basis for Asset Repossession in Kenya
Asset repossession is not a simple seizure; it is a legal process governed by specific Kenyan laws designed to protect both the lender and the borrower. The two primary statutes are the Hire-Purchase Act (Cap 507) and the Chattels Transfer Act (Cap 28). The Hire-Purchase Act is particularly important for consumer asset financing. It contains the well-known "two-thirds rule," which states that if the hirer has paid two-thirds or more of the total purchase price, the lender cannot repossess the asset without a court order.
For assets secured via a chattel mortgage (common for commercial vehicles and equipment), the Chattels Transfer Act applies. The rights to repossess are detailed within the chattel mortgage agreement itself. In all cases, a formal, legally compliant demand notice must be served to the debtor before any repossession action is taken. Attempting to repossess an asset without adhering to these legal protocols can expose the lender to lawsuits for wrongful seizure. Our expertise at Swipe Recoveries is in executing repossessions in strict compliance with these laws, often in coordination with the Kenya Police Service to ensure there is no breach of the peace, thereby protecting our clients from legal liability.
Our Strategic Repossession and Recovery Process
Our process is built for speed and legal precision. We ensure every step is documented and executed professionally to secure your asset and minimize your risk.
1. Instruction & Legal Review: We receive the instruction from you, the lender, along with the hire-purchase agreement or chattel mortgage, statement of arrears, and a copy of the asset's logbook. Our team immediately reviews the file to confirm the legal grounds for repossession.
2. Skip Tracing & Asset Location: If the debtor's or asset's location is unknown, our highly effective skip tracing team gets to work. Using a network of resources and discreet investigative techniques, we quickly locate the asset anywhere in Nairobi and beyond.
3. The Repossession Action: Once the asset is located, our field team moves in to secure it. Our agents are trained to handle the situation professionally and de-escalate potential conflicts. If resistance is anticipated, we liaise with the local police OCS for assistance to ensure a peaceful and lawful recovery.
4. Securing and Storing the Asset: Immediately after repossession, the asset is moved to a secure storage facility. We conduct an inventory of its condition and any personal items left inside, which are documented and set aside for the debtor to collect.
5. Post-Repossession Notification: We promptly notify the debtor that the asset has been repossessed and inform them of the steps required to redeem it, in line with statutory requirements.
Debt Recovery & Auctioneering Coverage in Nairobi, Kenya
Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Nairobi, Kenya and all 47 counties in Kenya.
Understanding the Costs of Asset Repossession
The costs associated with asset repossession are a necessary investment to prevent the total loss of the financed amount. We maintain a transparent fee structure so our clients, the lenders, know exactly what to expect. Key costs include:
Repossession Fee: This is the primary fee for the physical recovery service. For a standard motor vehicle within Nairobi, this can range from KES 20,000 to KES 50,000, depending on the complexity of the recovery.
Skip Tracing Fee: If the asset's location is unknown, an additional fee for investigation and tracking services will apply.
Storage Fees: Secure yard storage fees are charged on a daily basis, typically ranging from KES 1,000 to KES 2,500 per day for a car or light truck.
Auctioneer's Costs: If the asset is not redeemed and proceeds to auction, the auctioneer's commission and advertising costs will be incurred, as stipulated by the Auctioneers Rules.
These costs are typically added to the outstanding loan balance for the debtor to pay if they wish to redeem the asset. By acting quickly, we help minimise storage costs and accelerate the process towards either redemption or sale.
