Hire Purchase

Topics: Contract, Hire purchase, Closed-end leasing Pages: 36 (10457 words) Published: June 1, 2013

The hire Purchase acT
Chapter 507

Revised Edition 2010 (1982) Published by the National Council for Law Reporting with the Authority of the Attorney General



CAP. 507


[Rev. 2010

ARRANGEMENT OF SECTIONS part I–prelImInary Section 1–Short title. 2–Interpretation. 3–Application. part II–regIstratIon 4–Establishment of registry. 5–Agreements to be registered. part III–provIsIons as to hIre-purChase agreements 6–Requirements relating to agreements. 7–Avoidance of certain provisions in agreements. 8–Conditions and warranties implied in agreements. part Iv–Change of

address and removal of goods

9 –Change of address and removal of goods from premises. 10–Removal of goods from Kenya. 11–Court may allow goods to be removed. part v–temInatIon and CompletIon of agreement 12–Hirer may terminate agreement. 13–Hirer may complete agreement. part vI–reCovery of possessIon by suIt 14–Adverse possession. 15–Recovery of possession where two-thirds of price paid. 16–Provisions where suit instituted. 17–Where order for delivery of goods postponed.

Rev. 2010] Section


CAP. 507


part vII–lICensIng of hIre-purChase busInesses 18–Licence required to carry on hire-purchase business. 19–Licensing officer. 20–Granting of licences. 21–Where renewal of licence refused. 22–Appeals. 23–Licence to be displayed. part vIII–mIsCellaneous 24–Successive agreements between same parties. 25–Owner to account for proceeds of sale. 26–Hirer’s refusal to surrender goods not conversion. 27–Hirer may require information. 28– Appropriation of payments where more than one agreement. 29–Limitation on enforcement of agreement. 30–Agreement binding on trustee or liquidator of owner. 31–Bankruptcy of hirer. 32– Service of notices. 32A–Minister may determine interest rates, etc. 33–Minister’s power to obtain information. 34–False information. 35–Minister’s power to make rules. subsIdIary legIslatIon.


CAP. 507


[Rev. 2010

42 of 1968, 11 of 1970, L.N. 81/1970, L.N. 224/1970, 12 of 1984, 8 of 1985, 11 of 1992, 86 of 1997, 5 of 2007, 7 of 2007.

Commencement: 2nd November, 1970
An Act of Parliament to make provision for the regulation of certain hirepurchase agreements, and for the licensing of hire-purchase concerns, and for purposes connected therewith

part I—prelImInary 1. This Act may be cited as the Hire-Purchase Act. 2. (1) In this Act, except where the context otherwise requires— “contract of guarantee”, in relation to a hire-purchase agreement, means a contract, made at the express or implied request of the hirer, to guarantee the performance of the hirer’s obligations under the hirepurchase agreement, and “guarantor” shall be construed accordingly;

Short title. Interpretation.

Cap. 31.

“delivery”, “goods” and “warranty” have the same meanings as in the Sale of Goods Act; “hire-purchase agreement” means an agreement for the bailment of goods under which the bailee may buy the goods or under which the property in the goods will or may pass to the bailee; and, where by virtue of two or more agreements none of which by itself constitutes a hire-purchase agreement there is a bailment of goods and either the bailee may buy the goods or the property therein will or may pass to the bailee, the agreement shall be treated for the purposes of this Act as a single agreement made at the time when the last of those agreements was made; “hire-purchase business” means a business, whether carried on alone or with other business, of entering into hire-purchase agreements, whatever the hire-purchase price under any agreement; “hire-purchase price” means the total sum payable by the hirer under a hire-purchase agreement in order to complete the purchase of goods to which the agreement relates, including any sum payable by the hirer by way of a deposit or other initial...
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