Section 10 of Hire Purchase Act CAP 507: Removal of goods from Kenya

(1) The owner of goods under a hire-purchase agreement may stipulate in the agreement that the hirer shall not remove or permit the removal of the goods from Kenya without the written consent of the owner.
(2) If the hirer, in breach of a stipulation made in pursuance of subsection (1) and with intent to deprive the owner of his ownership of the goods or to defeat the rights of the owner to obtain any payment due to him under the agreement, removes or permits the removal of the goods from Kenya, he shall be guilty of an offence and liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year, or to both such fine and imprisonment.
(3) If a hire-purchase agreement contains a stipulation such as is referred to in subsection (1) of this section and the owner believes that the goods have been removed or are being removed or are about to be removed from Kenya without his written consent, he may institute a suit for the return of the goods.
(4) Before instituting a suit in pursuance of subsection (3) of this section, or while the suit is pending, the owner may make an application, in which the hirer or other person substantially interested in the goods shall be made respondent, to a court for an order for the attachment of the goods.
(5) An application for an order under subsection (4) may be made, on summons or ex parte on the respondent, to a court having jurisdiction in the area in which the respondent or the goods proposed to be attached are present or through which the goods are likely to be removed.
(6) Such an application shall be governed by the rules of court relating to application on summons or notice or, as the case may be, applicable ex parte in
interlocutory proceedings of a similar nature and which are in force in the Court to which the application is made, mutatis mutandis, subject to subsections (7), (8) and (9) of this section.
(7) A court which makes an order ex parte for the attachment of goods under subsection (4) may require the applicant to give such security for damages as may be caused by the order as the Court may think fit.
(8) An order for the attachment of goods under this section -
(a) may be discharged or varied by the Court on cause shown by any person affected by the order and on such terms as to costs as the Court may think fit; and
(b) shall ipso facto be discharged upon the respondent giving security both for the value of the goods to which the order relates and for the applicant’s costs.
(9) If goods are attached by order of a court other than the court in which the action for the return of the goods is brought, the court which made the order of attachment shall cause copies of the application, order and proceedings, together with the goods attached or (as the case may be) the security given for their release, to be transmitted to the court in which the action is brought.

More Sections

Section 11 - Court may allow goods to be removed

Where the terms of a hire-purchase agreement require the hirer to keep the goods comprised in the agreement in his possession or control at a particular place or not to remove the goods from a...

Section 12 - Hirer may terminate agreement

(1) At any time before the final payment under a hire-purchase agreement falls due, the hirer may terminate the agreement by returning the goods to the owner and giving him written notice of...

Section 13 - Hirer may complete agreement

(1) The hirer under a hire-purchase agreement may give notice in writing to the owner of his intention to complete the purchase of the goods by paying or tendering to the owner on a specified day the...

Section 14 - Adverse possession

(1) Where an owner institutes a suit to enforce a right to recover possession of goods from a hirer and proves that, before the institution of the suit and after the right to recover possession of...

Section 15 - Recovery of possession where two-thirds of price paid

(1) Where goods have been let under a hire-purchase agreement and two-thirds of the hire-purchase price has been paid, whether in pursuance of the agreement or of a judgment or otherwise, or has been...

Section 16 - Provisions where suit instituted

(1) Where a suit is instituted in the circumstances described in section 15 of this Act, the owner shall not take any step to enforce payment of any sum due under the hire-purchase agreement or under...

Section 17 - Where order for delivery of goods postponed

(1) While the operation of an order for the delivery of goods to the owner is postponed under section 16(4)(b), the hirer shall be deemed to be bailee of the goods under and on the terms of the...

Section 18 - Licence required to carry on hire-purchase business

(1) No person after the appointed day. shall carry on hire-purchase business, except under and in accordance with the terms of a current licence authorizing him to do so. (2) Any person who...

Section 19 - Licensing officer

The Minister shall appoint a public officer to be the licensing officer for the purposes of this Act.

Section 20 - Granting of licences

(1) A person may make application for a licence in the prescribed manner, and the licensing officer shall either grant a licence accordingly, either without conditions or subject to such conditions as...

Section 21 - Where renewal of licence refused

Where the holder of a licence applies for and is refused a new licence, or where a person who immediately before the commencement of this Act was carrying on hire-purchase business applies before the...

Section 22 - Appeals

(1) Any person who is refused a licence may appeal to the Minister in writing within one month after the date of the refusal, and the Minister’s decision shall be final. (2) Where a person appeals...

Section 23 - Licence to be displayed

The holder of a licence shall ensure that the licence or a copy thereof is at all times conspicuously displayed in or on every premises in which he carries on hire-purchase business, and if he fails...

Section 24 - Successive agreements between same parties

Where goods have been let under a hire-purchase agreement and at any time after two-thirds of the hire-purchase price has been paid or tendered the owner makes a further hire-purchase agreement with...

Section 25 - Owner to account for proceeds of sale

Where the owner under a hire-purchase agreement enforces a right to recover possession of the goods from the best price reasonably obtainable as soon as is reasonably practicable and he shall be...

Section 26 - Hirer’s refusal to surrender goods not conversion

If, while the enforcement by an owner of a right to recover possession of goods from a hirer is restricted by this Act, the hirer refuses to give up possession of goods to the owner, the hirer shall...

Section 27 - Hirer may require information

(1) If a hirer hands or sends by registered post to the owner a written request therefor, and tenders to the owner a sum of ten shillings for expenses, the owner shall, within fourteen days after the...

Section 28 - Appropriation of payments where more than one agreement

A hirer who is liable to make payments in respect of two or more hire-purchase agreements to the same owner shall be entitled, on making any payment in respect of the agreements which is not...

Section 29 - Limitation on enforcement of agreement

An owner shall not be entitled, by reason of the hirer’s failure to carry out any obligation under a hire-purchase agreement, to enforce - (a) any provision in the agreement for the acceleration of...

Section 30 - Agreement binding on trustee or liquidator of owner

(1) If - (a) in the case of a natural person, the owner is adjudged bankrupt; or (b) in the case of a company, the owner is placed in liquidation, a hire- purchase agreement entered into by the...

Section 31 - Bankruptcy of hirer

If a hirer is adjudged bankrupt, the rights and duties which are the subject of the hire-purchase agreement entered into by the hirer shall vest in his trustee, notwithstanding the terms of the...

Section 32 - Service of notices

(1) Any notice or document required or authorized to be served on or given to an owner or hirer under this Act may be so served or given - (a) by delivering it to him personally; (b) by leaving it...

Section 32A - Minister may determine interest rates etc.

(1) The Minister may, in consultation with the Central Bank of Kenya established under the Central Bank of Kenya Act (Cap. 491), determine and publish - (a) the matters to be taken into account in...

Section 33 - Minister’s power to obtain information

(1) Every person carrying on hire-purchase business shall furnish to the Minister, at the prescribed time and in the prescribed manner, all such information as the Minister may reasonably require for...

Section 34 - False information

Any person who knowingly gives false information in any proposal form or other document completed for the purpose of entering into a hire-purchase agreement shall be guilty of an offence and liable to...

Section 35 - Minister’s power to make rules

(1) The Minister may make rules generally for the better carrying out of any of the provisions or purposes of this Act. (2) Without prejudice to the generality of the powers conferred by subsection...

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