Hire purchase licence Kenya: KSh 50,000 BRS fee and Form HP 10

Updated 10 November 2026

Selling furniture, electronics, motorbikes or machinery on instalments is a big business in Kenya. When the seller keeps ownership until the last payment, the deal is usually hire purchase, and hire purchase businesses must be licensed. A hire purchase licence Kenya application goes to the Hire Purchase Registry at the Business Registration Service (BRS). BRS lists Form HP 10, financial statements prepared as required by the Companies Act, 2015, a KSh 50,000 fee and a 1-day timeline. Licensing is only half the job. Each hire purchase agreement should also be registered as a security right in the movable property registry. This guide covers both, plus checks for customers.

Source: BRS About Hire Purchase Registry and Fee Schedule – Collateral Registry, read on 8 November 2026. Confirm requirements with the Registry (hp@brs.go.ke) before applying.

Hire purchase licence Kenya: key facts

What the Hire Purchase Registry does

BRS says its Hire Purchase Registry licenses and supervises hire purchase businesses under the Hire Purchase Act, Cap. 507. Its listed core functions are:

• issuing licences to hire purchase businesses;
• inspecting hire purchase businesses;
• working with the Movable Property Security Rights (MPSR) Registry to receive, store and make available information on registered notices of security rights in movables;
• implementing relevant policies and guidelines.

How to apply for a hire purchase licence in Kenya

1. Prepare financial statements in the form required by the Companies Act, 2015. Have them prepared by your accountant.
2. Complete Form HP 10, the application to be licensed as a hire purchase business.
3. Pay the KSh 50,000 fee through the official BRS channel.
4. Receive the licence to conduct hire purchase business. BRS lists the timeline as 1 day.

Before applying, confirm with the Registry whether your instalment model is in fact hire purchase. Some instalment products are structured as sales on credit or buy-now-pay-later instead.

Registering each agreement as a security right

BRS explains that the Hire Purchase Registry is linked to the MPSR Registry. Once the owner (the seller or financier) enters into a hire purchase agreement with the hirer, “the Owner must ensure that they register the Security Right in the movable property under the MPSR Registry”. Registration protects the owner’s interest if the hirer fails to pay or goes through bankruptcy or liquidation, noting that the goods may not be in the owner’s possession. It also “guarantees the owner a right of priority against other creditors”.

The collateral registry fee schedule lists initial, amendment and cancellation notices as no fee payable, issued immediately online. When a customer completes payment, file a cancellation so that their record is clear. See our collateral registry search guide.

Running a licensed hire purchase business

• Keep the licence current and display your licensed status in contracts and marketing.
• Expect inspections. Keep agreements, payment records and registry notices organised.
• Register a security right for each agreement promptly, and cancel it on completion.
• Disclose the full instalment cost to customers in writing. See our analysis of the true cost of instalments.

Hire purchase licence Kenya checks for customers

• Ask the seller for its hire purchase licence and confirm with the Registry at hp@brs.go.ke if in doubt.
• Read the agreement: total price, deposit, instalments, what happens if you miss a payment.
• Keep every receipt. After the last payment, ask for written confirmation and the cancellation of the security notice.
• Buying second-hand goods? Run a KSh 500 collateral registry search, because an item still on hire purchase may be registered.

Hire purchase vs buy now, pay later

Hire purchase and buy-now-pay-later products both spread payments out, but they are structured and regulated differently. Read our comparison of hire purchase vs BNPL before choosing a model for your business or a product for yourself. A hire purchase licence Kenya application only makes sense if your contracts really are hire purchase agreements.

Common hire purchase licence Kenya mistakes

Trading before licensing. Starting instalment sales while the application is still being prepared exposes the business to enforcement risk. Plan the launch around the licence.

Skipping registry notices. Without a registered security right, the owner may lose priority to other creditors if a customer becomes insolvent. Since initial notices carry no fee, there is little reason to skip them.

Forgetting cancellations. Customers who finish paying need a clean record. Cancel the notice promptly, which is also free, and keep evidence that you did.

Weak records. Inspections are part of the Registry’s mandate. Keep agreements, statements and registry confirmations together for each customer.

Unclear contracts. Customers should be able to see the total price, the deposit, each instalment and what happens on default. Plain language reduces disputes and repossession fights.

Frequently asked questions

How much is a hire purchase licence in Kenya?

BRS lists KSh 50,000 for the licence to conduct hire purchase business.

What do I submit?

Form HP 10 and financial statements as prescribed under the Companies Act, 2015.

How long does licensing take?

BRS lists 1 day.

Must I register each hire purchase agreement?

BRS says the owner must register the security right in the movable property under the MPSR Registry. Initial notices carry no fee.