Debt Recovery

MNG & Company Advocates provides specialized debt recovery solutions tailored to banks, microfinance institutions, SACCOs, and other financial institutions across Kenya. We understand that overdue debts can cause significant financial strain, and our team is committed to recovering non-performing loans swiftly and effectively through negotiation, mediation, or litigation. We combine assertive legal action with practical pre-litigation strategies to maximize recoveries while preserving commercial relationships where possible.

Our debt recovery services include:

a) Pre-Legal Recovery & Negotiation

Demand Management: Preparation and strategic issuance of formal demand notices, reminder letters, and final payment calls to delinquent borrowers.
Repayment Restructuring: Negotiating revised payment plans, moratoriums, and settlement agreements that balance recovery with borrower capacity.
Track & Tracing: Locating absconding debtors through internal and external asset and contact tracing mechanisms.

b) Secured Debt Recovery

Collateral Realization: Enforcement of chattel mortgages, logbook loans, and other securities through repossession and auctioneering processes.
Guarantor Enforcement: Legal action against personal and corporate guarantors to recover outstanding loan balances.
Charge Enforcement: Realization of fixed and floating charges and debentures under insolvency proceedings.

c) Legal Action & Litigation

Court Proceedings: We handle the full spectrum of debt recovery litigation, including fast-track proceedings before the Small Claims Court for amounts within its jurisdiction, summary judgment applications to resolve undisputed claims without full trial delays, and civil suits in Magistrates’ Courts and the High Court for contested debt recovery matters.

d) Post-Judgment Enforcement

Warrants of Attachment & Sale: Enforcement of court decrees through attachment and public auction of movable and immovable assets.
Garnishment Proceedings: Court orders directing third parties (e.g., banks, employers, account debtors) to remit amounts due from the judgment debtor.
Prohibitory Orders: Restraining debtors from disposing of or transferring assets pending recovery.

e) Insolvency & Receivership

Bankruptcy Petitions: Filing for bankruptcy against individual debtors where other recovery avenues have been exhausted.
Liquidation Petitions: Court applications to wind up corporate borrowers unable to meet their obligations.
Receiver Manager Appointments: Appointment of receiver managers under debentures to take control of business assets and cash flows.

f) Portfolio Credit Support

Loan Documentation Review: Auditing loan agreements, application forms, and security documents to identify and rectify enforcement gaps.
Credit Policy Advisory: Advising on internal credit management policies, borrower vetting procedures, and collateral perfection processes.
Staff Training: Training credit and collections officers on legal risk mitigation, proper documentation, and pre-legal recovery steps.

All Practice Areas