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Banking & financeUpdated 1 min read

Movable assets as loan security: Kenya’s collateral registry

Vehicles, equipment, stock and receivables can secure lending under the Movable Property Security Rights Act.

By Wakili Link Editorial

The Movable Property Security Rights Act, 2017 made it easier for businesses without land to borrow against other assets.

What can be used as security

  • motor vehicles and equipment,
  • inventory and stock,
  • receivables (money owed to the business),
  • crops and livestock, and
  • intellectual property and shares.

How it works

  1. The borrower and lender sign a security agreement describing the collateral.
  2. The lender registers a notice in the online Collateral Registry, which gives the security right priority against third parties.
  3. Priority among competing lenders generally follows the order of registration.

Searching the registry

Before buying used equipment or a vehicle, search the registry to confirm it is not subject to a security right.

Enforcement

On default, the lender may take possession and dispose of the collateral after giving the required notices, subject to the Act’s protections for the borrower.

This article is general information, not legal advice on your situation.

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    Movable assets as loan security: Kenya’s collateral registry