Borrowers will now be able to use President Uhuru Kenyatta has signed into law a Bill allowing borrowers to use household goods, crops, live animals and even intellectual property to secure commercial loans.
The move is aimed at boosting access to credit.
The Movable Property Security Rights Act 2017 paves the way for the formation of a centralised electronic registry for mobile assets that financial institutions can use to verify the security offered.
The new law will help bank customers without common and costly forms of collateral to access credit.
“The Act promotes consistency and certainty in securing financing relating to movable assets,” the President said in a brief announcing the Bill’s signing into law.
The new law will be used to establish an Office of Registrar and the appointment of a registrar to “receive, store and make accessible to the public information on registered notices with respect to security rights.”