Kenya's auctioneering industry is seeking the most comprehensive overhaul of its legal framework since the enactment of the Auctioneers Act in 1996.
They argue that the nearly three-decade-old legislation no longer reflects the country's constitutional, technological and economic realities.
These reforms are being spearheaded by the National Association of Kenya Auctioneers (NAKA), the Kenya National Society for Professional Auctioneers (KENSAP) and supported by the Auctioneers Licensing Board (ALB), which seeks to modernise the Auctioneers Act (Cap 526) and the Auctioneers Rules of 1997 to align the profession with the Constitution of Kenya 2010, digital transformation and evolving commercial practices.
As per a memorandum submitted by the Auctioneers Fraternity of Kenya proposes wide-ranging legislative reforms that would introduce digital governance, improve dispute resolution, strengthen consumer protection and expand the regulatory mandate of the Auctioneers Licensing Board.
Speaking during a regional stakeholders' forum in Kisumu City, the Chief Executive Officer and Secretary of the Auctioneers Licensing Board, Festus Terer, said auctioneers remain a critical pillar of Kenya's justice system because they are responsible for executing court orders and ensuring judicial decisions are effectively enforced.
He pointed out that while the Constitution introduced sweeping legal and governance reforms over the past decade, the laws governing auctioneers have remained largely unchanged.
He said the proposed amendments are intended to strengthen professionalism, improve accountability, embrace technology and enhance public confidence in the profession.
Among the key proposals is the formal recognition of electronic service of legal notices, digital documentation, electronic auctions, online record-keeping and modern payment systems.
Industry players argue that debt recovery, banking transactions and court communication have increasingly shifted to digital platforms, making it necessary for the law to formally recognise these practices.
The reforms also seek to establish an electronic public register containing details of all licensed auctioneers and auctioneering firms, including their licensing status and disciplinary records, enabling members of the public to verify legitimate practitioners before engaging their services.
To improve accountability, the proposals require complaints against licensed auctioneers to be heard and determined within 90 days, with written decisions issued within 30 days after hearings.
Stakeholders believe this will eliminate lengthy disciplinary delays while promoting transparency and fairness.
A major concern raised during the consultations is the growing number of unlicensed individuals masquerading as auctioneers.
NAKA National Chairman Maurice Osundwa said rogue operators continue to damage the profession's reputation through illegal repossessions, excessive use of force, intimidation and unlawful evictions.
Although licensed auctioneers operate under strict legal and ethical standards, he said the actions of unqualified individuals have eroded public trust in the profession.
To address the problem, the fraternity proposes significantly tougher penalties against illegal operators.
The maximum fine for practising without a licence would increase from Sh100,000 to Sh1 million, while the maximum prison sentence would rise from two years to three years.
Similar penalties would apply to individuals who unlawfully obtain or retain auctioneers' licences.
The proposed amendments also seek to strengthen the powers of the Auctioneers Licensing Board beyond licensing and disciplinary functions.
Under the proposed reforms, the Board would establish professional standards, oversee continuous professional development, promote innovation within the sector, consult stakeholders before introducing new regulations or revising fees and publish annual reports detailing licences issued, complaints handled and disciplinary actions taken.
To improve efficiency, the industry proposes classifying auctioneers according to their areas of practice.
Class A auctioneers would handle realisation of securities, repossessions and auctions involving both movable and immovable property nationwide, while Class B practitioners would additionally undertake rent distress, court warrants and eviction exercises across the country.
Recognising the rising cost of doing business, the fraternity is also advocating for auctioneers' fees and remuneration to be reviewed every five years to reflect prevailing economic conditions.
The proposals further recommend extending the period within which sole proprietors nominate successor auctioneers from 45 days to 90 days and introducing mechanisms allowing suspended practitioners to transfer pending assignments to approved nominees.
The reform agenda also addresses operational challenges affecting interactions between auctioneers and financial institutions, advocates, insurance companies and law enforcement agencies.
Industry players have expressed concern over increasing instances where other parties undertake duties legally reserved for licensed auctioneers, creating conflicts and undermining the regulatory framework.
As part of the implementation process, NAKA, KENSAP and the Auctioneers Licensing Board have agreed to establish an ALB Users Committee comprising regulators, practitioners and key stakeholders.
The committee will provide a structured platform for addressing persistent industry challenges, including failure to serve proclamations, excessive use of force during executions, overcharging of fees and the use of unlicensed personnel.
If Parliament adopts the proposed amendments, they would mark the most significant transformation of Kenya's auctioneering laws in nearly 30 years, ushering in a modern regulatory framework designed to embrace technology, strengthen consumer protection, improve professional standards and enhance the efficient administration of justice.
