The use of movable assets such as vehicles, household electronics and machinery as collateral for loans rose 9.8 per cent in the first four months of 2026, underscoring a steady shift in Kenya’s credit market as borrowers increasingly turn to non-land securities to access financing.
Data from the Business Registration Service (BRS) shows that initial security notices filed at the Movable Property Security Rights (MPSR) registry increased to 55,350 between January and April 2026, up from 50,419 recorded in the same period last year.
The MPSR registry allows lenders to register legal claims over movable assets pledged as collateral, giving financiers priority rights in the event of borrower default. Commonly pledged assets include motor vehicles, machinery, equipment, livestock, inventory, household goods, electronic securities and receivables.
Closely tracking lending activity, searches conducted on the registry rose 16.3 per cent to 10,994 from 9,451 a year earlier, pointing to stronger due diligence by financial institutions before disbursing credit. Lenders typically conduct searches to verify whether assets offered as security have already been encumbered or carry existing claims.
The increase in both registrations and searches points to deeper uptake of movable asset financing nearly a decade after Kenya reformed its secured lending framework.
The Movable Property Security Rights Act, 2017, replaced the chattels registry system and created a modern legal structure for using movable property as collateral.
The reforms were designed to expand access to credit, particularly for micro, small and medium enterprises (MSMEs), which often lack land titles required under traditional lending models. Before the changes, many businesses with productive assets such as machinery, vehicles and stock-in-trade were locked out of formal credit despite having substantial operational value.
The sustained rise in registry activity also comes against a backdrop of gradual credit expansion in the private sector, supported by easing monetary policy and improving liquidity conditions in parts of the banking industry.
The Central Bank of Kenya has in recent months maintained a measured monetary easing stance aimed at reducing borrowing costs and encouraging lending to households and businesses.
Financial sector players say the growing use of movable collateral reflects broader efforts to deepen financial inclusion and widen access to secured lending products beyond land-based security.
Analysts note that the shift is gradually reshaping how credit risk is assessed, particularly for small businesses whose assets are often movable but economically significant.
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