Movable property laws set for major overhaul

Sammy Ndolo, Managing Partner in the CDH Kenya office was featured in the People's Daily Kenya where he discussed Movable property laws set for major overhaul.

Sammy says that the Movable Property Security Rights (Amendment) Bill, 2024, aims to modernise Kenya's regulation of movable property transactions, replacing the outdated Hire Purchase Act. Key changes include giving the Central Bank of Kenya (CBK) authority to set interest rates for hire purchase agreements.

However, Sammy warns that could complicate deals and reduce their attractiveness. Additionally, all entities involved in hire purchase will be required to obtain licenses, potentially streamlining regulations but introducing new administrative burdens for businesses.

Sammy adds that the Bill proposes among other things easier repossession of goods, which has raised concerns about consumer protections and addresses registration requirements for charges and security rights, aiming to reduce administrative delays. If passed, these reforms will bring significant changes to Kenya’s movable property market, creating both new opportunities and challenges for consumers and businesses.

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