ADVOKS GLOBAL · KENYA
Capital Markets Act
30L. Origination of assets for sale, transfer or assignment
Edition: 2025-12-11 · In force
30L. Origination of assets for sale, transfer or assignment
(1)Subject to such requirements that may be imposed by the Authority, all securitisation transactions shall involve either one or a combination of—(a)the direct origination of the assets into the securitisation trust; or(b)the sale, transfer or assignment of the assets to the trustee to be held under the terms of the securitisation trust in a manner which constitutes a true sale according to the laws of Kenya in relation to the particular type of asset, the laws governing the transaction or the jurisdiction or location of the assets.(2)Assets may be transferred to a securitisation trust by more than one seller or originator:Provided that—(a)the sale, transfer or assignment of the asset is recognized as such by the relevant law or law governing the transaction, and in such case, it shall not be necessary, in order to achieve a true sale and to satisfy the requirements of this Act that off balance sheet treatment is achieved under the accounting rules by the originator or the seller or that capital relief be provided by any other regulator.(3)The sale, transfer or assignment in relation to a specific asset or a specific securitisation transaction under subsection (1) shall, subject to such conditions as the Authority may impose, be a legal and not an equitable sale, transfer or assignment of the asset or assets.(4)Failure to achieve a true sale shall not as a consequence of the operation of this Act operate to invalidate the sale, transfer or assignment, the issue or offer of asset backed securities or otherwise adversely affect the rights of the investors in asset backed securities.