• Prevents misunderstandings
• Protects your legal and financial interests
• Helps enforce your rights in the event of default, eviction, or legal proceedings
• Ensures compliance with relevant statutes

 

Our Role at W.J. Maxwell & Associates Advocates

 

At W.J. Maxwell & Associates Advocates, we specialise in drafting comprehensive tenancy agreements tailored to your specific property and tenant type. Here's what we offer:

 

Drafting & Customisation – We prepare the agreement with legally binding terms compliant with all applicable statutes.

Execution & Signing – We supervise signing and append our signature and stamp, making it fully enforceable in court.

Dispute Representation – If a tenant defaults or disputes arise, we handle all legal processes on your behalf.

Notice Writing – We draft Statutory Notices, Demand Letters, and guide you on eviction procedures in line with the law.

Auctioneer Oversight – We guide auctioneers during distress for rent processes to ensure legality and compliance, shielding you from liability.

Moderate Legal Fees – We believe legal support should be accessible. Our fees are moderate, transparent, and tailored to the complexity of the assignment.

 

Peace of Mind Starts with the Right Legal Partner

Property management doesn't have to be a legal minefield. With W.J. Maxwell & Associates Advocates by your side, you can enjoy peace of mind, knowing that your interests are protected by experienced legal professionals.

Avoid costly mistakes, unnecessary disputes, and prolonged court battles. Let us draft, review, and execute your tenancy agreements today—because your property deserves professional protection.

 

Contact Us Today

For consultations, agreement drafting, dispute representation, or legal notices, reach us at:

info@wjmaxwelladvocates.co.ke

+254 733 610961

Nairobi | Mombasa | Eldoret | Nakuru

Buying a small business can be one of the most rewarding investments you’ll ever make. However, unlike buying everyday goods, acquiring a business is complex — it involves hidden liabilities, regulatory compliance, and contract risks that can either make or break your deal. That is where a lawyer comes in.

What to Look At Before Buying

As a lawyer, the due diligence stage is critical. Before any money changes hands, we carefully examine:

1. Business Structure – Is it a sole proprietorship, partnership, or limited company? The structure determines how ownership is transferred and what liabilities follow.

2. Licences and Compliance – We verify if the business has all the necessary permits and is in good standing with regulators.

3. Contracts and Debts – From supplier agreements to outstanding loans, we assess what the buyer is inheriting.

4. Assets and Intellectual Property – We confirm ownership of premises, equipment, trademarks, or goodwill.

5. Financial Records – We ensure audited accounts and tax compliance reflect the true value of the business.

The Lawyer’s Role

A lawyer ensures the deal is structured in your best interest by:

Drafting or reviewing the Sale Agreement, capturing every term of the transaction.

Negotiating clauses on payment, warranties, and indemnities to protect the buyer.

Ensuring title transfer of assets or shares is properly registered.

Guiding on employment obligations if staff are being retained.

Ensuring compliance with the Companies Act, 2015, tax laws, and sector-specific regulations.

Why the Lawyer Matters

Without a lawyer, buyers risk paying for a business only to inherit hidden debts, lose licences, or face disputes over ownership. With proper legal guidance, the buyer not only secures a clean deal but also enjoys peace of mind knowing the law backs their investment.

Disclaimer: This is not legal advice and should not be relied upon as such.

Read more blog posts here! https://wjmaxwell.co.ke/blog/0/0

Contact us for further details.

Email info@wjmaxwell.co.ke || or call/text/WhatsApp 0733 61 09 61

W.J. Maxwell & Associates Advocates

Leaders in Law: Reshaping the Practice of Law

Did You Know?

You can now register a security right over your movable property online using your e-Citizen account! The Movable Property Security Rights Act, 2017 (MPSRA), which became law in May 2017, makes this possible. The Act was introduced to make it easier for individuals and businesses to access credit by allowing them to use movable property as collateral.

The MPSRA replaced the old Chattels Transfer Act and also made changes to several other laws, including:

• The Agricultural Finance Corporation Act
• The Stamp Duty Act
• The Hire Purchase Act
• The Pawnbrokers Act
• The Business Registration Services Act
• The Companies Act, 2015
• The Insolvency Act, 2015

The law is implemented through the Movable Property Security Rights (General) Regulations, 2017.

Purpose of the Act

The Act was created to:

1. Allow movable assets to be used as collateral for loans.
2. Provide clear and consistent rules on how security rights over movable property should be handled.
3. Make it easier for businesses and individuals to access credit using movable assets.
4. Establish a registry where security rights over movable assets can be recorded.
5. Create the Registrar of Security Rights, who manages the system.

How a Security Right is Created

A Security Right is a legal claim over a movable asset that is used to secure the payment of a loan or the performance of an obligation. This means that if the borrower (grantor) fails to pay, the lender (secured creditor) can take possession of the asset or sell it to recover the loan amount.

A Security Right is created through a written agreement between:

• The Grantor (the borrower who is offering their asset as collateral).
• The Secured Creditor (the lender providing the loan).

To be valid, the grantor must have ownership rights over the asset or the legal power to use it as collateral.

A security agreement can also cover future assets (property that the borrower does not own yet). However, the security right only takes effect when the borrower actually acquires the asset.

For the agreement to be legally valid, it must:

• Be written and signed by the grantor.
• Clearly identify the secured creditor and the grantor.
• Describe the secured obligation (except in cases where the agreement involves the outright transfer of a receivable).
• Provide enough details about the collateral so that it can be identified.

The Securities Registry

The Movable Property Security Rights Registry is an online system that allows lenders (secured creditors) to:

• Check if a movable asset already has a security right registered against it.
• Register their security rights over movable assets to protect their interests.

How to Register a Security Right

Once the borrower (grantor) and lender (secured creditor) have signed their security agreement, they must register a notice in the registry.

Why Register?

• Registration makes the security agreement legally enforceable.
• It protects the lender’s rights over the collateral.
• It notifies other potential lenders that the asset is already being used as collateral.

Good news! Registration is currently free.

Steps to Register Online via e-Citizen

1. Go to www.ecitizen.go.ke and log in to your account.
2. Select "Business Registry Services."
3. Click on "Collateral Registry (MPRS)."
4. Open the application form and enter the grantor’s details.
5. Enter the secured creditor’s details.
6. Provide details about the collateral (the movable asset being used as security).
7. Enter details about the secured loan.
8. Review the application and submit it.

How to Conduct a Search in the Registry

Once a security notice is registered, you can search the registry to check if a particular movable asset has an existing security right.

How to Search

1. Use either the grantor’s identification details or the serial number of the asset.
2. Pay a search fee of Kshs. 500.
3. The system will generate a search certificate, which:
   • Shows the date and time of the search.
   • Displays all matching records or confirms that there are no security rights registered.
4. The search certificate serves as official proof of the search results.

Amendment and Cancellation of a Security Notice

After a security right has been registered, the lender (secured creditor) can either:

• Amend the notice if there is an error or if the security agreement has been changed.
• Cancel the notice if the loan has been repaid or if the security agreement is no longer valid.

Reasons for Cancellation

A registered security notice can be canceled if:

1. The grantor never authorized the initial registration.
2. The grantor withdrew their authorization and no security agreement was signed.
3. The loan has been fully repaid, and the lender no longer has any rights over the collateral.

Who Takes Care of the Movable Asset?

• The movable asset may remain with the borrower (grantor) or be held by the lender (secured creditor).
• The party in possession of the asset must take care of it and ensure it remains in good condition.
• The lender has the right to inspect the asset to confirm its condition.

Read more blog posts here! https://wjmaxwell.co.ke/blog/0/0

Disclaimer: This is not legal advice and should not be relied upon as such.

Contact us for further details.

Email info@wjmaxwell.co.ke || or call/text/WhatsApp 0733 61 09 61

W.J. Maxwell & Associates Advocates

Leaders in Law: Reshaping the Practice of Law

Introduction

For years, shylocks and microfinance institutions (MFIs) in Kenya have played a crucial role in providing credit to individuals and businesses that lack access to mainstream financial institutions. However, their lending practices have often been constrained by cumbersome collateral requirements, legal uncertainties, and the risk of default.

The introduction of the Movable Property Security Rights Act, 2017 (MPSR Act) has significantly transformed the lending landscape, making it easier for small lenders to secure their interests in movable assets without the burden of court processes. This article explores how the MPSR framework benefits shylocks and MFIs, comparing it with the pre-existing regulations and highlighting its key advantages.

Understanding the Movable Property Security Rights Act, 2017

The MPSR Act was enacted to create a clear legal framework for using movable assets as collateral. Before its enactment, lenders faced challenges in securing their loans, especially in cases where borrowers defaulted. The traditional laws did not provide an efficient system for recognizing, registering, and enforcing security interests in movable property.

Under the MPSR framework, lenders can now register their security interests in a centralized registry, which provides legal recognition of their rights and simplifies the process of recovering debts in case of default.

How the MPSR Act Benefits Shylocks and Microfinance Institutions

1. Expanding the Scope of Acceptable Collateral

Traditionally, most lenders, including banks, required immovable property such as land or buildings as collateral. However, many small borrowers, particularly those seeking loans from shylocks and MFIs, do not own such assets.

The MPSR Act allows lenders to take security over a wide range of movable assets, including:

Motor vehicles

Stock-in-trade

Household goods

Livestock

Intellectual property (such as patents and copyrights)

Accounts receivable

This expansion of acceptable collateral enables shylocks and MFIs to lend more confidently, even to individuals who lack land titles or real estate holdings.

2. Centralized Online Registration System

The Movable Property Security Rights Registry provides an online system where lenders can register their security interests. This registration serves as public notice that a specific movable asset is encumbered, reducing the risk of fraud and double pledging of assets.

For shylocks and MFIs, this means they can easily verify whether an asset has been used as collateral for another loan before accepting it as security. This transparency was previously lacking, making it difficult for lenders to assess the risk of lending against movable property.

3. No Need to Go to Court for Debt Recovery

One of the most significant advantages of the MPSR framework is that it eliminates the need for expensive and time-consuming court processes when enforcing security interests.

Previously, if a borrower defaulted on a loan secured by movable property, the lender often had to seek court intervention to repossess or sell the asset. This was particularly difficult for shylocks and MFIs, who lacked the resources for prolonged legal battles.

Under the MPSR Act, lenders can enforce their security interests without going to court by:

Seizing and selling the collateral after notifying the borrower

Appointing a receiver to take control of the asset

Retaining the collateral in satisfaction of the debt

These provisions ensure that lenders can recover their money more efficiently, reducing losses associated with loan defaults.

4. Better Legal Protection for Lenders

Before the MPSR Act, shylocks and MFIs operated in a largely informal manner, exposing them to legal risks. Many borrowers would dispute loan agreements, claiming unfair lending terms or denying the existence of a loan altogether.

With the MPSR framework, a registered security interest provides legal proof of the lender’s claim over the collateral. This protects lenders from fraudulent borrowers who might attempt to dispose of the asset or claim that they never took the loan.

5. Higher Loan Recovery Rates

By reducing legal uncertainties and simplifying enforcement procedures, the MPSR Act increases the likelihood of recovering loans. When borrowers know that lenders can quickly seize and sell collateral without court intervention, they are more likely to honor their loan obligations.

Additionally, lenders can now conduct better risk assessments using the movable assets registry, ensuring that they only accept collateral that is free of existing encumbrances.

6. Lower Lending Costs and Improved Profitability

For many shylocks and MFIs, legal fees and court-related costs were a significant burden. The MPSR Act reduces these expenses, allowing lenders to operate more efficiently.

By streamlining the lending process, reducing default risks, and improving loan recovery rates, the new framework enhances profitability for lenders while ensuring fairer lending practices.

Comparison with Pre-existing Regulations

Before the enactment of the MPSR Act, lenders relied on outdated legal frameworks such as the Chattels Transfer Act and common law principles. These regulations had several limitations:

The MPSR Act has effectively modernized the process, making lending against movable assets safer, faster, and more cost-effective.

Conclusion

The Movable Property Security Rights Act, 2017 is a game-changer for shylocks and microfinance institutions in Kenya. By expanding the scope of acceptable collateral, introducing a centralized registration system, and eliminating the need for court intervention, the Act provides a more efficient and legally secure lending framework.

For lenders, this means higher loan recovery rates, reduced legal costs, and greater confidence in issuing credit to small borrowers. By leveraging the benefits of the MPSR Act, shylocks and MFIs can expand their businesses while mitigating risks, ultimately contributing to increased financial inclusion in Kenya.

Shylocks and microfinance institutions should actively embrace the MPSR system by registering their security interests and familiarizing themselves with the enforcement procedures. By doing so, they will not only protect their investments but also enhance their competitiveness in the evolving financial landscape.

Read more blog posts here! https://wjmaxwell.co.ke/blog/0/0

Disclaimer: This is not legal advice and should not be relied upon as such.

Contact us for further details.

Email info@wjmaxwell.co.ke || or call/text/WhatsApp 0733 61 09 61

W.J. Maxwell & Associates Advocates

Leaders in Law: Reshaping the Practice of Law