Hire purchase: registering agreements and getting a hire purchase business licence
Business Registration Service · sources read 2 Oct 2026
You no longer register a hire purchase agreement itself. The owner (seller or financier) protects the goods by filing an initial notice on the e-Collateral (MPSR) Registry, and anyone running a hire purchase business needs an annual BRS licence costing KSh 50,000.
- Fee
- KSh 50,000Hire purchase business licence (new)KSh 50,000Hire purchase business licence (renewal)
- How long
- Licence: about 1 day
- Where
- Online on eCitizen (BRS). Owners file initial notices on the e-Collateral (MPSR) Registry. Queries: hp@brs.go.ke
What you need
- Form HP 10 (licence application)
- Application letter
- Copy of the memorandum and articles of association
- Copy of the registration certificate
- Bank statements of hire purchase business for three years, or an introduction letter from your bank
Steps
- Owner: after signing a hire purchase agreement, file an initial notice on the e-Collateral (MPSR) Registry so your right to the goods holds against other creditors.
- Make sure the agreement states the cash price, the hire purchase price and a clear description of the goods.
- Business: apply for the hire purchase licence on eCitizen (manual.brs.go.ke/services) with Form HP 10 and the documents, and pay KSh 50,000.
- Renew the licence every year and display it at every shop where you sell on hire purchase.
Watch out
- The old hire purchase agreement register was repealed by the Movable Property Security Rights Act, 2017. Registering at MPSR is what protects the owner now.
- Once the buyer has paid two thirds of the hire purchase price, the owner can only take the goods back through the courts.
- Running a hire purchase business without a licence can lead to a fine of up to KSh 20,000, a year in jail, or both.
Who can apply
- Licence: any person or business that sells goods on hire purchase.
- The Hire Purchase Act protects individual and small-business hirers. It does not cover company hirers or deals above KSh 4 million.
Official sources (3)
- Frequently Asked Questions (Hire Purchase) brs.go.ke · read 2 Oct 2026
- About Hire Purchase Registry brs.go.ke · read 2 Oct 2026
- BRS services on eCitizen (manual services) manual.brs.go.ke · read 2 Oct 2026