Ronald Marambii

CEO's Profile

Theme | ’Moveable Property Business Growth Opportunities
Topic | Moveable Assets Credit Opportunities
MONTH | March 2022

The Moveable Property Security Rights Act (MPSR) was enacted in June 2017, expanding credit access opportunities, particularly for SMEs. The MPSR sought to facilitate the use of moveable property as security by both individuals and corporates, introducing new types of collateral that can be used to secure credit. In summary, the MPSR Act operates as a law governing secured transactions between a creditor and a lender where, in return for a loan advanced, the borrower gives Moveable property as security or collateral.

The framework diversifies the type of collateral a person can give as security, moving from the traditional form of security, including land, motor vehicles, machinery, and other forms of Moveable collateral such as stock in trade, household furniture, crops, bank accounts, proceeds of sale and even personal items such as phones and laptops.

For borrowers, the Registry provides an environment where it is easier for them to access credit. It also makes it easier for the borrower use one collateral as security against different loans.

The Collateral Moveable Security Property Registry serves as a public notice to any other entity interested in a particular collateral, indicating any prior interest. Should a lender choose to lend against the same collateral, they will become second or third in priority in event of default.

This edition of #CEOchat will broadly explore opportunities that the MPSR presents to MSMEs to access credit, featuring discussions on ways the use of the MPSR can be expanded.