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Auctioneers Act Kenya

There has been misconceptions as to whether auctioneering is within the law. The answer is yes. According to The auctioneers Act No. 5 of 1996 and Rules of 1997, there are well set duties and responsibilities of an auctioneer. These professionals have been licensed through the Auctioneers Licensing Board. Among some of the duties of the auctioneers include:

  • Levying distress for rent against defaulting tenants according to the provisions for Rent Act Cap 293 laws of Kenya.
  • To solicit for sale any movable or immovable property after a court order through a written contract.
  • To repossess a property pursuant to any written law or contract.
  • Carrying out of evictions pursuant to a Court order.
  • Selling a movable or immovable property through public auction or by competition.

In Kenya, it is against the law to engage in the fore named activities without a valid Auctioneers license. Therefore the demand for an identification badge is required and the practicing license is important before the auctioneering process begins.

Engaging a licensed auctioneer is not offensive, in fact in the recent past, there have been cases where debtors have been compensated a lot of money by the creditors through court rulings in the event where unlicensed individuals took the roles of an auctioneer. Since they are guided within the provision of the law in Auctioneers Act No 5 of 1996, Auctioneers Rules 1997 and the Auctioneers Practice Rules of 2009. Auctioneers Practice Rules 2009, any licensed auctioneer has all the authority to seize a property and get a court order against the property. In the case of intimidation or some resistance from the debtor, an auctioneer will call for police escort. All the expenses are catered for by the debtor. Normally when the debtors fail to honor the financial obligations, the creditors turn to the auctioneers. Much as the debtors have all the reasons as to why they have delayed their payments, the best thing to do is engage with a lawyer and discuss on the state of affairs before the auctioneers come in.

Once the court has given a ruling, the auction process begins. During this time, the debtor needs to be careful enough and demand for the identification of the auctioneer in order to reduce cases of theft and fraud. The debtor should own up in the event when the auctioneers show up, and if possible accept the proclamation notice that is normally given by the auctioneers. If you have a lawyer, you can present the notice and from there get a strategy that would lead to some favorable negotiations. Normally a good lawyer will get back to the courts and explain the reason for the financial instability. The court can then opt to extend the period for payment.

Within the provisions of the act, the auctioneer is not permitted to be dishonest, violent or dishonest even when the law allows him to attach the property. The auctioneer will also need to estimate the value of the property and if not, the debtor has the right to object the auctioneering process.