Section 2 of The Consumer Protection Act CAP 501: Interpretation
(1) In this Act, unless the context otherwise requires—
"advance" means value, as prescribed, received by the borrower under a credit agreement;
"accredited consumer organization" means society registered under the Societies Act (Cap. 108), for the purposes of consumer protection and related matters;
"annual percentage rate" means the annual percentage rate in respect of a credit agreement that is determined in the prescribed manner;
"borrower" means a consumer who is or may become a party to a credit agreement and who receives or may receive credit or a loan of money from the other party, but does not include a guarantor;
"brokerage fee" means the payment that a borrower makes or agrees to make to a loan broker who assists the borrower in arranging a credit agreement, and includes an amount deducted from an advance made to the borrower that is paid to the broker;
"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to trade and industry; "consumer" means—
(a) a person to whom particular goods or services are marketed in the ordinary course of the supplier’s business;
(b) a person who has entered into a transaction with a supplier in the ordinary course of the supplier’s business, unless the transaction is exempt from the application of this Act;
(c) a user of particular goods or a recipient or beneficiary of particular services, irrespective of whether that user, recipient or beneficiary was a party to a transaction concerning the supply of those particular goods and services; and
(d) a franchisee in terms of a franchise agreement, to the extent applicable in terms of this Act;
"consumer agreement" means an agreement between a supplier and a consumer in which the supplier agrees to supply goods or services for payment;
"consumer report" means a written, oral or other communication of credit information or personal information, or both, pertaining to a consumer;
"consumer transaction" means any act or instance of conducting business or other dealings with a consumer, including a consumer agreement;
"cost of borrowing" means all amounts that a borrower is required to pay under or as a condition of entering into a credit agreement other than—
(a) a payment or repayment of a portion of the principal under the agreement as prescribed; and
(b) prescribed charges;
"credit agreement" means a consumer agreement under which a lender extends credit or lends money to a borrower and includes a supplier credit agreement and a prospective consumer agreement under which an extension of credit, loan of money or supplier credit agreement may occur in the future, but does not include an agreement under which a lender extends credit or lends money on the security of a mortgage of real property or consumer agreements of a prescribed type;
"credit card" means a card or device under which a borrower can obtain advances under a credit agreement, as defined in Part VII, for open credit;
"credit information" means information about a consumer as to name, age, occupation, place of residence, previous places of residence, marital status, spouse’s name and age, number of dependants, particulars of education or professional qualifications, places of employment, previous places of employment, estimated income, paying habits, outstanding debt obligations, cost of living obligations and assets;
"credit repair" means services or goods that are intended to improve a consumer report, credit information, file or personal information, including a credit record, credit history or credit rating;
"credit repairer" means—
(a) a supplier of credit repair; or
(b) a person who holds himself out as a person described in clause (a);
"default charge" means a charge imposed on a borrower who does not make a payment as it comes due under a credit agreement or who does not comply with any other obligation under a credit agreement, but does not include interest on an overdue payment;
"direct agreement" means a consumer agreement that is negotiated or concluded in person at a place other than— (a) at the supplier’s place of business; or
(b) at a market place, an auction, trade fair, agricultural fair or exhibition;
"estimate" means an estimate of the total cost of work on and repairs to the goods being repaired;
"file", when used as a noun, means all of the information pertaining to a consumer that is recorded and retained by a person, regardless of the manner or form in which the information is stored;
"fixed credit" means credit or a loan of money under a credit agreement that is not for open credit;
"floating rate" means a rate that bears a specified mathematical relationship to a public index that meets the prescribed requirements;
"future performance agreement" means a consumer agreement in respect of which delivery, performance or payment in full is not made when the parties enter the agreement;
"initiation fee" means a fee in addition to an annual membership fee;
"internet agreement" means a consumer agreement formed by text-based internet communications;
"internet gaming site" means an internet site that accepts or offers to accept wagers or bets over the internet—
(a) as part of the playing of or participation in any game of chance or mixed chance and skill that is to take place inside or outside Kenya; or
(b) on any contingency or on any event that may or is to take place inside or outside of Kenya, including, without restricting the generality of the foregoing, a casino game, card game, horse race, fight, match, sporting event or contest;
"lease" means a consumer agreement for the lease of goods, other than a consumer agreement for the lease of goods in connection with a residential tenancy agreement, and "lessor" and "lessee" have a corresponding meaning;
"lease term" means the period during which the lessee is entitled to retain possession of the leased goods;
"lender" means a supplier who is or may become a party to a credit agreement and who extends or may extend credit or lends or may lend money to the borrower and includes a credit card issuer; "loan broker" means—
(a) a supplier of loan brokering; or
(b) a person who holds himself out to be a person described in clause (a);
"loan brokering" means services or goods that are intended to assist a consumer in obtaining credit or a loan of money, including obtaining credit or a loan of money from the loan broker who is providing the services or goods to the consumer;
"membership fee" means the amount payable by a consumer for personal development services;
"open credit" means credit or a loan of money under a credit agreement, as defined in Part VII, that—
(a) anticipates multiple advances to be made as requested by the borrower in accordance with the agreement; and
(b) does not define the total amount to be advanced to the borrower under the agreement, although it may impose a credit limit;
"operator" means—
(a) a person who is a credit repairer or a loan broker; or
(b) a supplier who supplies such goods or services as may be prescribed or a person who holds himself out as a supplier of such goods or services;
"optional service" means a service that is offered to a borrower in connection with a credit agreement and that the borrower does not have to accept in order to enter into the agreement;
"personal development services" means— (a) services provided for—
(i) health, fitness, diet or matters of a similar nature;
(ii) modeling and talent, including photo shoots relating to modeling and talent, or matters of a similar nature;
(iii) martial arts, sports, dance or similar activities;
(iv) such other services as may be prescribed; and
(b) facilities provided for or instruction on the services referred to in clause (a) and any goods that are incidentally provided in addition to the provision of the services;
"personal information" means information other than credit information about a consumer’s character, reputation, health, physical or personal characteristics or mode of living or about any other matter concerning the consumer;
"remote agreement" means a consumer agreement entered into when the consumer and supplier are not present together;
"repairer" means a supplier who works on or repairs vehicles or other prescribed goods;
"residual obligation lease" means a lease under which the lessor may require the lessee at the end of the lease term to pay the lessor an amount based in whole or in part on the difference, if any, between—
(a) the estimated wholesale value of the leased goods at the end of the lease term; and
(b) the realizable value of the leased goods at the end of the lease term;
"services" means anything other than goods, including any service, right, entitlement or benefit;
"supplier" means a person who is in the business of selling, leasing or trading in goods or services or is otherwise in the business of supplying goods or services, and includes an agent of the supplier and a person who holds himself out to be a supplier or an agent of the supplier;
"supplier credit agreement" means a consumer agreement, other than a consumer agreement involving leases to which Part VIII applies, under which a supplier or an associate of the supplier, extends fixed credit to a consumer to assist the consumer in obtaining goods or services, other than credit or a loan of money, from the supplier;
"supplier creditor" means the supplier or an associate of a supplier in a supplier credit agreement;
"time share agreement" means a consumer agreement by which a consumer—
(a) acquires the right to use property as part of a plan that provides for the use of the property to circulate periodically among persons participating in the plan, whether or not the property is located in Kenya; or
(b) is provided with access to discounts or benefits for the future provision of transportation, accommodation or other goods or services related to travel;
"trade-in allowance" means the greater of—
(a) the price or value of the consumer’s goods or services as set out in a trade-in arrangement; and
(b) the market value of the consumer’s goods or services when taken in trade under a trade-in arrangement; and
"vehicle" means a motor vehicle as defined in the Traffic Act (Cap. 403).
(2) Nothing in this Act shall be interpreted to limit any right or remedy that a consumer may have in law.
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- Section 3 - Interpretation and purposes of Act
(1) This Act must be interpreted in a manner that gives effect to the purposes set out in subsection (4).
(2) When interpreting or applying this Act, a person, court or the Advisory
Committee may...
- Section 4 - Class proceedings
(1) A consumer may commence a proceeding on behalf of a class of persons or may become a member of such class of persons in a proceeding in respect of a dispute arising out of a consumer agreement...
- Section 5 - Quality of goods and services
(1) The supplier is deemed to warrant that the goods or services supplied undera consumer agreement are of a reasonably merchantable quality.
(2) The implied conditions and warranties applying to the...
- Section 6 - Estimates
(1) If a consumer agreement includes an estimate, the supplier shall not chargethe consumer an amount that exceeds the estimate by more than ten per cent.
(2) If a supplier charges an amount that...
- Section 7 - Ambiguities
Any ambiguity that allows for more than one reasonable interpretation of a consumer agreement provided by the supplier to the consumer or of any information that must be disclosed under this Act shall...
- Section 8 - Charging consumers for assistance
No person shall charge a consumer for assisting the consumer to obtain any benefit, right or protection to which the consumer is entitled under this Act, unless, before the consumer agrees to pay the...
- Section 9 - Unsolicited goods and services
(1) Except as provided in this section, a recipient of unsolicited goods or services has no legal obligation in respect of their use or disposal.
(2) No supplier shall demand payment or make any...
- Section 10 - Consumer may commence action
A consumer who made payment under section 9(6) may commence action to recover the payment in accordance with section 84.
- Section 11 - Advertising of illegal sites
(1) No person shall advertise an internet gaming site that is operated contrary to any written law.
(2) No person, other than an internet service provider, shall arrange for or otherwise facilitate...
- Section 12 - False representation
(1) It is an unfair practice for a person to make a false, misleading or deceptive representation.
(2) Without limiting the generality of what constitutes a false, misleading or deceptive...
- Section 13 - Unconscionable representation
(1) It is an unfair practice to make an unconscionable representation.
(2) Without limiting the generality of what may be taken into account in determining whether a representation is unconscionable,...
- Section 14 - Renegotiation of price
It is an unfair practice for a person to use his, her or its custody or control of a consumer’s goods to pressure the consumer into renegotiating the terms of a consumer transaction.
- Section 15 - Prohibition of unfair practices
(1) No person shall engage in an unfair practice.
(2) A person who performs an act referred to in sections 12, 13 and 14 shallbe deemed to be engaging in an unfair practice.
(3) It is not an unfair...
- Section 16 - Rescinding agreement
(1) Any agreement, whether written, oral or implied, entered into by a consumer after or while a person has engaged in an unfair practice may be rescinded by the consumer and the consumer is entitled...
- Section 17 - Application of Part
(1) Despite sections 78 and 79, in the prescribed circumstances, the effect of cancellation of a consumer agreement to which this Part applies by a consumer and the obligations arising as a result of...
- Section 18 - Requirement for future performance agreements
Every future performance agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements.
- Section 19 - Cancelling future performance agreements
A consumer may cancel a future performance agreement within one year after the date of entering into the agreement if the consumer does not receive a copy of the agreement that meets the requirements...
- Section 20 - Repossession after payment of two-thirds
(1) Where a consumer under a future performance agreement has paid two-thirds or more of his or her payment obligation as fixed by the agreement, any provision in the agreement, or in any security...
- Section 21 - Late delivery
(1) A consumer may cancel a future performance agreement at any time before delivery under the agreement or the commencement of performance under the agreement if the supplier—
(a) does not make...
- Section 22 - Requirements for time share agreements
Every time share agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements.
- Section 23 - Cancellation of time share agreements
(1) A consumer may, without any reason, cancel a time share agreement atany time from the date of entering into the agreement until ten days after receiving the written copy of the agreement.
(2) In...
- Section 24 - Requirements for personal development services agreements
(1) Every personal development services agreement shall be—
(a) in writing;
(b) delivered to the consumer;
(c) made in accordance with the prescribed requirements.
(2) No supplier shall require or...
- Section 25 - An agreement is for one year
(1) No personal development services agreement may be made for a termlonger than one year after the day that all the services are made available to the consumer.
(2) Any personal development services...
- Section 26 - Only one agreement
(1) No supplier shall enter into a new agreement for personal developmentservices with a consumer with whom the supplier has an existing agreement for personal development services unless the new...
- Section 27 - Initiation fee
No supplier of personal development services shall— (a) charge a consumer more than one initiation fee; or
(b) charge an initiation fee that is greater than twice the annual membership fee.
- Section 28 - Installment plans
(1) Every supplier of personal development services shall make available to consumers at least one plan for installment payments of membership fees and initiation fees, if applicable, that allow...
- Section 29 - Cancellation: cooling-off period
(1) A consumer may, without any reason, cancel a personal development services agreement at any time within ten days after the later of receiving the written copy of the agreement and the day all the...
- Section 30 - Trustee for payment for unavailable services
(1) No supplier shall receive payment from a consumer for personal development services that are not available at the time the payment is made.
(2) Subsection (1) does not apply when one of the...
- Section 31 - Disclosure of information on internet agreement
(1) Before a consumer enters into an internet agreement, the supplier shalldisclose the prescribed information to the consumer.
(2) The supplier shall provide the consumer with an express opportunity...
- Section 32 - Copy of internet agreement
(1) A supplier shall deliver to a consumer who enters into an internet agreementa copy of the agreement in writing within the prescribed period after the consumer enters into the agreement.
(2) The...
- Section 33 - Cancellation of internet agreement
(1) A consumer may cancel an internet agreement at any time from the date the agreement is entered into until seven days after the consumer receives a copy of the agreement if—
(a) the supplier did...
- Section 34 - Requirements for direct agreements
Every direct agreement shall be in writing, shall be delivered to the consumer and shall be made in accordance with the prescribed requirements.
- Section 35 - Cancellation of direct agreements
(1) A consumer may, without any reason, cancel a direct agreement at any timefrom the date of entering into the agreement.
(2) In addition to the right under subsection (1), a consumer may cancel a...
- Section 36 - Disclosure of information on remote agreements
Before a consumer enters into a remote agreement, the supplier shall disclose the prescribed information to the consumer and shall satisfy the prescribed requirements.
- Section 37 - Copy of remote agreement
(1) A supplier shall deliver to a consumer who enters into a remote agreement a copy of the agreement in writing within the prescribed period after the consumer enters into the agreement.
(2) The...
- Section 38 - Cancellation of remote agreement
(1) A consumer may cancel a remote agreement at any time from the date the agreement is entered into until seven days after the consumer receives a copy of the agreement if the supplier fails to...
- Section 39 - Requirements for consumer agreements on loan brokering, etc.
Every consumer agreement for loan brokering, credit repair or for the supply of such other goods or services as may be prescribed shall be in writing, shall be delivered to the consumer and shall be...
- Section 40 - Advance payments prohibited
(1) No operator shall require or accept any payment or any security for a payment, directly or indirectly, from or on behalf of a consumer unless and until—
(a) in respect of loan brokering, the...
- Section 41 - Cancellation of consumer agreement on loan brokering, etc.
(1) A consumer who is a party to an agreement for loan brokering, credit repairor the supply of such goods and services as may be prescribed may, without any reason, cancel the agreement at any time...
- Section 42 - Officers and Director
The officers and directors of an operator are jointly and severally liable for any remedy in respect of which a person is entitled to commence a proceeding against the operator.
- Section 43 - Prohibited representations
An operator shall not communicate or cause to be communicated any representation that is prescribed as a prohibited representation.
- Section 44 - Estimates
(1) No repairer shall charge a consumer for any work or repairs unless the repairer first gives the consumer an estimate that meets the prescribed requirements.
(2) Despite subsection (1), a repairer...
- Section 45 - Estimate fee
(1) Subject to subsection (3), no repairer shall charge a fee for an estimate unless the consumer is told in advance that a fee will be charged and the amount of the fee.
(2) A fee for an estimate...
- Section 46 - Authorization required
(1) No repairer shall charge for any work or repairs unless the consumer authorizes the work or repairs.
(2) No repairer shall charge, for work or repairs for which an estimate was given, an amount...
- Section 47 - Authorization not in writing
If an authorization required by section 44, 45 or 46 is not given in writing, the authorization is not effective unless it is recorded in a manner that meets the prescribed requirements.
- Section 48 - Posting signs
A repairer shall post the prescribed signs in accordance with the prescribed requirements.
- Section 49 - Return of parts
(1) Every repairer shall offer to return to the consumer all parts removed in thecourse of work or repairs and shall return all such parts unless advised when the work or repairs are authorized that...
- Section 50 - Invoice
The repairer shall, on completion of work or repairs, deliver to the consumer an invoice containing the prescribed information in the prescribed manner.
- Section 51 - Warranty for vehicles
(1) On the repair of a vehicle, every repairer shall be deemed to warrant all new or reconditioned parts installed and the labour required to install them for a minimum of ninety days or five thousand...
- Section 52 - Consistent cost
No repairer shall give an estimate or charge an amount for work or repairs that is greater than that usually given or charged by that repairer for the same work or repairs merely because the cost is...