The High Court has declared that the Auctioneers Licensing Board exceeded its legal mandate when it attempted to take disciplinary action against banks, credit firms, and other institutions accused of conducting auctions without the necessary licences.
Justice Benjamin Njoroge made the ruling in a case brought forward by Co-operative Bank, which had challenged the Board’s decision to entertain a complaint filed against it and 11 other entities. The complaint, lodged by the Kenya National Society of Professional Auctioneers, alleged that financial institutions were repossessing assets and selling properties, activities that, by law, should be handled by licensed auctioneers.
Co-operative Bank, backed by NCBA Bank, Stanbic Bank, Mogo Auto and several others, contended that the Board had no jurisdiction over them since they were regulated by the Central Bank of Kenya, not by the Auctioneers Licensing Board.
“When the Board declared its authority as being all-encompassing, extending to entities that are not registered auctioneers, it erred. This Court is therefore justified in setting aside the Tribunal’s decision,” Justice Njoroge ruled.
The auctioneers’ association had cited a February 2023 advertisement by Co-operative Bank in the Daily Nation as evidence that the bank was conducting auctions despite lacking an auctioneer’s licence.
In response, the banks argued that any such violation would amount to a criminal offence, which falls under the jurisdiction of law enforcement, not the Auctioneers Board. They further argued that the matter had already been adjudicated in a 2022 case, making the new complaint repetitive and invalid.
Justice Njoroge concurred, affirming that the Auctioneers Act confines the Board’s powers to licensing, training, and disciplining registered auctioneers. It does not empower the Board to investigate or sanction individuals or institutions outside the profession.
The judge also pointed out that the 2022 ruling had already established that if financial institutions were using unlicensed auctioneers, the proper recourse was to report the offence to the police, not to file a disciplinary complaint before the Board.
“If the complainant has proof that any person is practising as an auctioneer without a licence, the appropriate action is to pursue a criminal case. A general declaration, like the one sought here, adds no value as it merely reiterates what the law already provides,” the court observed.
According to the Auctioneers Act, the Licensing Board’s duties are limited to registering practitioners, upholding discipline and ethical standards, overseeing training, and conducting inspections within the profession. Its authority does not extend to unregistered individuals or external companies.
