ADVOKS GLOBAL · KENYA
Land Act
81. Order of priority of charges
Edition: 2025-11-04 · In force
81. Order of priority of charges
(1)Unless otherwise provided in the charge instrument, charges shall rank according to the order in which they are registered.(2)Informal charges shall rank according to the order in which they are made provided that a registered informal charge shall take priority over any unregistered informal charge.(3)If two informal charges are made on the same day or are registered on the same day, the charge which was first in time to be made or registered shall have priority.(4)Unless otherwise provided in the charge instrument, if the chargee, holding a charge created subsequent in time to one in favour of a prior chargee, lends money or money's worth on the security of a charge to a chargor and it later transpires that a prior chargee or the chargor himself acted dishonestly or fraudulently in procuring the charge, the prior chargee's right to repayment under the charge shall be postponed to the rights of the subsequent chargee.(5)The rules of priority for informal charges shall apply as far as the circumstances shall permit liens by deposit of documents.