A Strategic Partner for Asset Recovery

We provide specialized repossession services for lenders, understanding that for banks, SACCOs, and microfinance institutions, asset recovery is a critical but sensitive part of risk management. Recovering assets—from vehicles and machinery to other movable property—requires more than just physical seizure; it demands strict adherence to a complex legal framework to protect the lender from costly litigation and reputational harm. Swipe Recoveries Experts Ltd acts as a professional extension of your institution, ensuring every repossession is conducted efficiently, ethically, and in full compliance with Kenyan law, thereby securing your assets while safeguarding your brand.

The Legal Imperative: Auctioneers Act & Movable Property Security Rights Act

The cornerstone of compliant repossession in Kenya is the Auctioneers Act, No. 5 of 1996. This law is unequivocal: the act of seizing a debtor's property in execution of a court order or pursuant to a security agreement (like a chattel mortgage) must be carried out by a licensed auctioneer. Lenders who attempt to use internal staff or unlicensed agents for physical repossession expose themselves to immense legal risk, including potential criminal charges and civil suits for wrongful conversion.

Furthermore, the Movable Property Security Rights Act (MPSRA), 2017, has revolutionized how lenders approach repossession for non-real estate assets. This Act provides a clear, modern framework for creating security rights over movable assets and outlines the lender's remedies upon default. Crucially, it codifies the lender's right to take possession of the collateral after issuing the required notices to the debtor. Our services ensure that every action taken is perfectly aligned with the procedural requirements of both the Auctioneers Act and the MPSRA, from the initial notice to the final disposal of the asset.

Repossession services lenders
Swipe Recoveries Experts Ltd

Our End-to-End Repossession Workflow for Financial Institutions

We offer a seamless, end-to-end workflow designed specifically for the needs of financial lenders. The process is initiated upon receiving a formal Letter of Instruction from you.

Step 1: Instruction & Document Review. We meticulously review all supporting documents, including the loan agreement, chattel mortgage, logbook (for vehicles), statement of account, and copies of default notices sent to the debtor, to ensure a solid legal basis for action.

Step 2: Proclamation and Notification. Our licensed auctioneer issues a formal Proclamation of Attachment, giving the debtor a final statutory window to settle the arrears before physical seizure.

Step 3: Professional Asset Seizure. Our field team, led by the auctioneer, conducts the physical repossession peacefully and professionally. For vehicles, we coordinate with authorities and use tools like the NTSA TIMS portal for verification. For machinery, we plan the logistics of dismantling and transport.

Step 4: Secure Storage & Reporting. The asset is immediately transported to a secure, insured yard. We generate a detailed condition report with photographic evidence, which is shared with you promptly.

Step 5: Auction & Realization. If the debt remains unpaid, we manage the entire public auction process as per the Auctioneers Rules, ensuring maximum value is recovered to offset the outstanding loan.

Managing Costs & Reputational Risk for Lenders

A professional from Swipe Recoveries offering repossession services for lenders.

For a lender, the success of repossession services is measured by two key metrics: cost-effectiveness and risk mitigation. The direct costs—including fees for proclamation, transport, storage, and security—are transparent and regulated by the Auctioneers Rules. We provide a clear fee structure upfront and detailed accounting upon completion, ensuring you can accurately forecast expenses.

However, the indirect cost of reputational damage from a poorly handled repossession can be far greater. In the age of social media, a single incident of an aggressive or unlawful seizure can go viral, causing irreparable harm to a lender's brand. The Consumer Protection Act, 2012, holds businesses to a high standard of conduct. By partnering with Swipe Recoveries, you mitigate this risk entirely. Our professional, ethical, and compliant approach ensures that your brand's integrity is protected throughout the difficult but necessary process of asset recovery. We act as your brand ambassadors, even in the face of default.

Frequently Asked Questions

What is the biggest risk for lenders during asset repossession in Kenya?
The biggest risk is legal and reputational damage resulting from non-compliance with the Auctioneers Act and the Consumer Protection Act. Using unlicensed agents or engaging in forceful, harassing behavior can lead to lawsuits, regulatory fines, and severe public backlash, which can be far more costly than the outstanding loan itself.
Can a lender use their own staff to repossess an asset in Kenya?
No. Under the Auctioneers Act, the physical act of seizing a debtor's property against their will must be carried out by a licensed auctioneer. A lender's staff can request the voluntary surrender of an asset, but they cannot legally compel it or physically repossess it without the debtor's consent. Doing so is illegal.
How does Swipe Recoveries assist lenders with the auction process?
Swipe Recoveries manages the entire auction process. This includes advertising the sale in a newspaper with nationwide circulation as required by law, setting a reserve price in consultation with the lender, conducting the public auction professionally, and handling all post-sale documentation and remittance of proceeds to the lender to settle the debt.