In Kenya, the transfer of vehicles purchased through bank repossession or rent auctions involves a detailed process regulated by the National Transport and Safety Authority (NTSA). These auctions, often held to recover outstanding loan payments or rent arrears, attract buyers looking for affordable vehicles. However, the transfer process involves strict documentation and adherence to NTSA protocols.
If you’ve recently acquired a vehicle through either a bank or rent auction, understanding the necessary steps and documents required is crucial. This article provides a comprehensive guide on the paperwork needed and the process to complete the vehicle transfer on NTSA’s online platform, eCitizen.
1. Vehicles Repossessed by Banks
When vehicles are repossessed by banks due to loan defaults, they are often sold to recover the outstanding amounts. If you purchase such a vehicle, the NTSA requires specific documents to facilitate the legal transfer of ownership.
Key Documents Required:
- Certified Copy of Auctioneer’s License and Registration Certificate: This verifies that the auctioneer was authorized to conduct the sale.
- KRA PIN of the Vehicle: The Kenya Revenue Authority (KRA) PIN of the vehicle must be presented to ensure proper tax compliance.
- Tender Documents: If the vehicle was sold through a formal tender process, these documents are necessary.
- Letter of Instruction from the Bank: The bank appointing the auctioneer must provide a formal letter authorizing the auction.
- Certificate of Sale: Proof of the sale must be provided through this certificate, along with the original purchase receipt from the auction.
- Discharge Letter from the Bank: This letter certifies that the bank has cleared the vehicle from any financial obligations.
- Original Vehicle Registration Certificate: The logbook serves as proof of ownership, and the new owner must transfer this document under their name.
- Certificates of Incorporation for both the bank and the auctioneer.
- KRA PIN for Auctioneer and Bank: Both entities must provide their KRA PINs to comply with tax regulations.
- Affidavits: Both the auctioning institution and the buyer are required to submit sworn affidavits confirming the sale and the transfer of the vehicle.
- Tape Lift from the Directorate of Criminal Investigations (DCI): This ensures that the vehicle is not involved in any criminal activities.
- Transfer Form: A properly filled form, available on the NTSA eCitizen portal, is necessary for the official transfer of ownership.
- Copy of Advertisement: The auction should have been publicly announced, and a copy of this advertisement must be submitted.
2. Cars Bought in Rent Auctions
Vehicles sold in rent auctions occur when property owners or landlords sell vehicles to recover rent arrears. The documentation for this type of auction is equally comprehensive.
Key Documents Required:
- Request Letter from New Owner: The buyer must formally request the transfer of ownership.
- Original Logbook or Police Abstract: If the logbook is missing, a police abstract is required to confirm the vehicle’s status.
- Form C: This is a form filled and stamped by the auctioneer, confirming the sale.
- Tape Lift from DCI: Similar to bank repossessions, this document verifies the vehicle’s legal status.
- Sworn Affidavit: A sworn affidavit from a magistrate or advocate is needed to confirm the transfer process.
- Copy of Buyer and Previous Owner’s ID & KRA PIN: Identification and tax details of both parties are essential for NTSA verification.
- Certificate of Registration and KRA PIN for the Company: If a company owns the vehicle, these documents are necessary for the legal transfer.
- Auctioneer’s License and Registration Certificate: The auctioneer must provide valid documentation proving their authority to conduct the auction.
- Certificate of Sale and Vesting Order: These confirm that the sale was legal and that ownership rights were transferred accordingly.
- Newspaper Advertisement of Auction: A public notice of the auction must be provided.
- Warrant of Attachment and Warrant of Sale: These are court orders allowing the sale of the vehicle to recover rent arrears.
3. The NTSA Vehicle Transfer Process on E-Citizen
NTSA has streamlined the vehicle transfer process through its eCitizen portal, making it easier to submit the required documents and track the progress of your transfer. Here’s how you can complete the vehicle transfer after acquiring a vehicle through an auction:
Step-by-Step Process:
- Log into Your E-Citizen Account: If you don’t have an account, you’ll need to create one at www.ecitizen.go.ke.
- Select NTSA Service Portal: Once logged in, navigate to the NTSA services section.
- Go to Services and Select Alternative/Forced Transfer: This category caters to vehicles sold through auctions.
- Fill in the Required Information: Enter details about the vehicle, including its registration number, auctioneer details, and buyer information.
- Attach Documents: Upload original, clear, colored scanned documents. Combine all relevant documents into a single PDF file.
- Indicate Collection Center: Specify the NTSA collection center where you will collect your logbook and provide the ID number of the authorized person who will collect it on your behalf.
- Submit Application and Pay Fees: Make the necessary payments for the transfer application and inspection services.
- Inspection Booking: After submission, you’ll receive a notification to book a vehicle inspection at a nearby NTSA inspection center.
- Present Vehicle for Inspection: On the appointed date, present the vehicle at the inspection center along with the original documents.
- Logbook Collection: Once approved, the new logbook will be issued, and the new owner will receive a notification to collect it.
4. Timelines and Costs
The transfer process typically includes a mandatory seven-day standstill period for verification. This is to allow NTSA to confirm the authenticity of the documents and prevent fraudulent transfers. The cost of transfer varies depending on the type and engine capacity of the vehicle but generally ranges between Ksh 1,500 to Ksh 10,000, depending on the category of vehicle.
Transferring a vehicle purchased through bank or rent auctions requires careful adherence to NTSA’s procedures and documentation requirements. By following the guidelines on the eCitizen platform and ensuring all the necessary documents are in order, the process can be completed smoothly. For those navigating these auctions for the first time, it’s essential to be aware of all the paperwork involved to avoid delays or complications during the transfer.
As more vehicles continue to be sold through bank repossessions and rent auctions, understanding these processes will save buyers time and help them avoid potential pitfalls, ensuring that they can legally and efficiently transfer ownership of their newly purchased vehicles.
