The Problem We Solve
Kenya's NPL crisis is not a credit problem — it is a resolution infrastructure problem. Lenders are legally required to follow a 175-day statutory notice period before auction, yet the current default outcome (forced public auction) recovers an estimated 10–30 cents per shilling of debt owed.
AuctionIT provides the technology infrastructure to utilise that statutory window productively — facilitating private treaty negotiations, verified buyer matching, and structured workouts before the auction deadline.
Legal Framework
Our platform is designed to operate within and support compliance with the following instruments:
Governs the chargee's (lender's) right to sell charged land. Requires 90 days' notice to the chargor before sale. AuctionIT's workflow begins at the 90-day notice stage, creating a structured private treaty window before public auction is triggered.
Regulates licensed auctioneers in Kenya. AuctionIT does not conduct auctions and does not act as an auctioneer. Our platform facilitates pre-auction resolution and provides digital listing infrastructure for licensed auctioneers who retain full legal responsibility for any auction proceedings.
CBK requires lenders to classify and provision NPLs and to demonstrate active recovery efforts. AuctionIT's platform generates auditable activity logs and resolution records that support lender compliance documentation, including CBK reporting on NPL recovery activities.
All personal and financial data processed through our platform is handled in accordance with the Data Protection Act and its regulations. Data is encrypted in transit and at rest, access is role-restricted, and we maintain a data processing register. See our Privacy Policy for full details.
AuctionIT is not a deposit-taking institution and does not require a banking licence. We provide technology services to CBK-regulated institutions. Our lender clients retain full regulatory responsibility for their NPL portfolios; AuctionIT provides tools and infrastructure to support their internal recovery processes.
What AuctionIT Does — and Does Not — Do
We do:
- Provide software tools to lenders for managing NPL resolution workflows.
- Match verified buyers with distressed properties listed by licensed auctioneers.
- Facilitate structured private treaty communications between borrowers, lenders, and buyers.
- Generate auditable records that support lender compliance and CBK reporting.
- Provide market intelligence on Kenya's distressed asset landscape.
We do not:
- Conduct auctions or act as a licensed auctioneer.
- Accept deposits or handle client funds.
- Provide legal advice to borrowers or lenders.
- Take on any credit risk or act as a guarantor.
- Replace or circumvent any statutory process required under Kenyan law.
Our Position on CBK Engagement
AuctionIT is pursuing formal engagement with the Central Bank of Kenya as a regulatory stakeholder. We believe that better NPL resolution infrastructure serves Kenya's financial system stability goals. We welcome dialogue with CBK, KBA member banks, and other regulated institutions about how our platform can support — rather than disrupt — the existing regulatory architecture.
For Compliance Officers and Legal Teams
We understand that regulated institutions require thorough due diligence before onboarding any technology vendor. We are prepared to provide:
- Full technical and security documentation (SOC-2 equivalent controls).
- Data Processing Agreements (DPAs) aligned with the Data Protection Act, 2019.
- Evidence of ODPC registration and data protection compliance.
- Platform architecture documentation for IT security review.
- Reference to applicable legal opinions on platform operations.
Request a Regulatory Briefing
We are happy to meet with your compliance, legal, or technology teams directly to walk through our regulatory framework and answer any due diligence questions.
Request a Briefing