The Business Laws Amendment Bill (Senate Bill No. 51 of 2024) seeks to accelerate loan recovery timelines for affordable housing loans by reducing the enforcement period from 90 days to 45 days. The bill also proposes shortening the notice period before the sale of property from 40 days to 20 days.
Passed by the Senate without amendments, the bill is currently under review by the National Assembly's Departmental Committee on Lands. The committee is assessing whether these changes will encourage investment in affordable housing while protecting borrowers' rights.
Key Provisions
- Loan enforcement period cut from 90 to 45 days.
- Notice period before property sale reduced from 40 to 20 days.
- Amendments apply exclusively to affordable housing properties.
Committee Chairperson Joash Nyamoko emphasized the need to balance investor confidence with safeguarding Kenyans' constitutional rights. "We must ensure the proposed timelines are fair, practical, and serve the public interest," he said.
Supporters argue that faster recovery will lower lending risks and motivate financial institutions to increase financing for affordable housing, potentially accelerating government housing initiatives.
Concerns Raised
- Kirinyaga Central MP Joseph Gitari questioned whether reduced timelines sufficiently protect vulnerable borrowers facing temporary financial difficulties.
- Kilome MP Thaddeus Nzambia expressed fears that shorter recovery periods might discourage potential homeowners due to increased foreclosure risks.
Nyamoko assured that the committee will consult lenders, developers, legal experts, and consumer advocates before finalizing recommendations. The committee aims to submit its report ahead of the Trade, Industry and Cooperatives Committee's review by August 13, 2026.
The outcome will influence how loan recovery under the Affordable Housing Programme is managed, balancing efficient enforcement with borrower protection.
