A pyrethrum farmer in Kisii County on May 7, 2017. PHOTO | BENSON MOMANYI | NMG
President Uhuru Kenyatta today signed
into law the Movable Property Security Rights Bill 2017, which enhances
the ability to access credit using movable assets.
The
new law (see download link on the right) allows the use of personal
property as collateral for loans, establishes an online collateral
registry and creates the office of the Registrar of security rights.
The
move is expected to increase access to credit by widening the pool of
collateral assets to include property such as livestock, crops and
household goods.
The online registry will allow lenders
to search the database for credit information on both loan seekers and
the movable asset used as collateral.
The Bill was tabled in parliament in November last year by Majority Leader Aden Duale.
Fiscal sector reform
The
law is only the latest reform introduced by the State to Kenya's
financial sector, coming after the president assented to the Proceeds of Crime and Anti-Money Laundering (Amendment) Bill 2017 in March and the Banking (Amendment) Bill 2015 that capped loan interest rates in August last year.
Mr Kenyatta signed the Bill Wednesday before he travelled to the United Kingdom to attend the 3rd London Conference on Somalia.
Deputy
President William Ruto, National Assembly Speaker Justin Muturi,
Solicitor General Njee Muturi and Mr Duale witnessed the signing of the
Bill into law.
READ: It’s time Kenyan banks take goats as loan collateral
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