Hire Purchase Act Cap 507 in Kenya

This Act may be cited as the Hire-Purchase Act.

(1) In this Act, except where the context otherwise requires - “the appointed day”, means such day as the Minister may, by notice in the Gazette, appoint to be the appointed day for the purpose of section 18 of this Act; “contract of guarantee”, in relation to a hire-purchase agreement, means a...

(1) This Act applies to and in respect of all hire-purchase agreements entered into after the commencement of this Act under which the hire-purchase price does not exceed the sum of four million shillings or such other higher or lower sum as the Minister may, after taking into account market forces...

(1) Deleted by Act No. 13 of 2017, Sch. (2) For conducting the business of the registry, the Minister may, by notice in the Gazette, appoint a public officer to be Registrar of Hire-Purchase Agreements, a public officer to be Deputy Registrar of Hire-Purchase Agreements and where necessary public...

(1) Deleted by Act No. 13 of 2017, Sch. (2) The registrar shall, on payment of the prescribed fee, register any hire-purchase agreement delivered to him under subsection (1), unless the agreement is liable to stamp duty and is not duly stamped, or is not in the English language. (3) On...

(1) Before a hire-purchase agreement is entered into in respect of any goods, the owner shall state in writing in the prescribed form to the prospective hirer, otherwise than in the agreement, a price at which the goods may be purchased by him for cash (in this section referred to as the cash...

Any provisions in hire-purchase agreement whereby— (a) an owner or any person acting on his behalf is authorized to enter upon any premises for the purpose of taking possession of goods which have been let under a hire-purchase agreement, or is relieved from liability for such an entry; or (b) the...

(1) In every hire-purchase agreement there shall be implied- (a) a condition that the owner will have a right to sell the goods at the time when the property is to pass; (b) a warranty that the hirer shall have and enjoy quiet possession of goods; (c) a warranty that the goods will be free from...

(1) The owner of goods under a hire-purchase agreement may stipulate in the agreement - (a) that the hirer shall record his postal, residential and business addresses in the agreement; and (b) that, if before the ownership of the goods passes to the hirer, the hirer changes either his postal,...

(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...

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 particular place, the Court may, on the application of the hirer and after hearing any representations made...

(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...

(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 net balance due to the owner under the agreement, and having given such notice may complete the...

(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 the goods accrued, he made a request in writing to the hirer to surrender the goods, the hirer’s...

(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 tendered by or on behalf of the hirer or a guarantor, the owner shall not enforce any right to...

(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 any contract of guarantee relating thereto, except by claiming the sum in the suit. (2) Subject to...

(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 hire-purchase agreement - (i) no further sum shall be or become payable by the hirer or a guarantor on...

(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 contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding two hundred...

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

(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 he may think fit, or refuse to grant a licence. (2) Where a licensing officer refuses to grant a...

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 appointed day for and is refused a licence, he may, notwithstanding section 18 of this Act, continue...

(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 under subsection (1) of this section, he may continue to carry on hire-purchase business until the...

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 to do so he shall be guilty of an offence and liable to a fine not exceeding one thousand shillings.

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 the hirer comprising those goods, sections 15 and 16 shall have effect in relation to that further...

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 liable to account for and pay hirer otherwise than by suit, he shall sell the goods at the to the hirer...

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 not, by reason only of such refusal, be liable to the owner for conversion of the goods.

(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 request and tender are received by him, hand or send by registered post to the hirer a statement...

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 sufficient to discharge the total amount then due under all the agreements, to require the owner to...

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 the payment of an instalment, unless an instalment, or some part of an instalment which is not less...

(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 person or company as owner continues in effect after the commencement of the bankruptcy or liquidation...