Nura Kara entered into a hire purchase contract with Ujuzi traders regarding sewing machine .The hire purchase price of the sewing machine was Sh.10, 000.Kara has paid a total of Sh.8000 but is facing financial difficulties and is in arrears for two months. The hire purchase company has repossessed the machine Nuru Kara is aggrieved. Explain the legal principle applicable in this case and advice Nuru Kara.

Legal principle applicable in this case and advice to Nuru Kara.

Where the hirer has paid more than 2/3 of the hire purchase price, the owner cannot repossess the goods without government order.

  • Nuru Kara has paid 8/10 and therefore repossession was illegal.
  • Owner Hire Purchase Company should return the goods otherwise Nura Kara can sue for an order of return.
  • There is clear violation of the law as a court order for the repossession had not been issued
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