Section 12 of Hire Purchase Act CAP 507: 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 termination of the agreement, and if he does so he shall be liable (without prejudice to any liability which accrued before the termination) to pay the amount, if any, by which one-half of the hire-purchase price exceeds the total of the sums paid and the sums which were due in respect of the hire- purchase price immediately before the termination or such lesser amount as may be specified in the agreement.
(2) Where a hire-purchase agreement has been terminated under this section, the hire shall, if he has failed to take reasonable care of the goods, be liable to pay damages for the failure.
(3) A hirer returning goods under subsection (1) shall return them at his own expense to the premises from which they were originally supplied to him or to such other place as the owner may direct:
Provided that the owner shall reimburse the hirer for any additional expense incurred in returning the goods to premises other than those from which they were originally supplied.
(4) Nothing in this section prejudices any right of a hirer to determine a hire-purchase agreement otherwise than by virtue of this section.

More Sections

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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