Agents in Kenya
An Agent in Kenya is a person employed to do any act for another or to represent a person in dealings with a third person. The person for whom the act is done is called a principal. The contract that creates the relationship of principal and agent is called an agency.
In an agency the principal and the third party must have contractual capacity but not necessarily the agent.
Classification of Agents in Kenya
Agents in Kenya can be classified from two dimensions, extent of their authority and nature of their work.
Classification of Agents in Kenya by the Extent of Their Authority
A General agent is a person who is employed to do all acts connected with a particular business or employment.
A Special agent is a person who can represent his principal in some specific transaction.
Universal agent is one whose authority is unlimited he can do everything that the principal can lawfully do.
The different types of agents in Kenya are Brokers, Factors, Commission agents, Del Credere, Forwarding Agents, Auctioneers, non Mercantile Agents
A broker is n agent who represents the principal in negotiating a purchase without physically handling the goods involved. He does not posses the goods and can’t change the principals pricing and on neither sell in his own name and has no authority to receive payment.
Factors are agent who sells goods in his possession on behalf of his principal. He possesses the goods that he sells, receives payments and gives valid receipts. He has legal possession and has lien on the goods in his possession for all charges and expenses incurred by him.
Commission agents are employed to sell goods for the principal at the best possible price. They are mostly employed by foreign merchants. They receive orders from foreign buyers to buy good from local manufacturers or producers and traders. They also undertake the work connected with the dispatch of the goods
Del credere sells the goods of his principal and undertakes to make the losses that may arise. Over and above the commission the agent gets extra pays called Del credere commission for giving the undertaking that the principal will not incur any losses from any buyers who will fail to pay their dues.
Forwarding agents are also agents who act on behalf of importers or exporters. Are employed to collect and deliver goods on behalf of others. They posses specialized knowledge of customs and other formalities connected with import export business.
An Auctioneer is an agent employed to sell goods at public auctions to the highest bidders. He has lien on the good in his possession for his charges.
Non mercantile agents are those agents who are involved in rendering services like lawyers, insurance brokers. They don’t deal with merchandise.
Creation of Agencies in Kenya
There are three ways in which agencies in Kenya can be created
The first one is by Implied Agreement where one person knows that something is being done and won’t object deny it holding. He or she takes affirmative actions.
The second one is by Necessity where it applies in emergency cases to protect an employer from losses incase an accident occurs. It normally occurs where the agent is unable to communicate with the principal.
The third one is by Ratification which is subsequent adoption and acceptance of an act originally done without authority.
Duties of an Agent in Kenya
- An Agent in Kenya has duty to follow the principal’s directions and customs.
- Duty to carry out work with reasonable skill and diligence.
- Duty to render account of the work performed to the principal.
- An Agent in Kenya also has duty to communicate with the principal.
- Duty not to deal on his own account.
- Duty not to make profit out of his agency except his remuneration.
- An Agent in Kenya has duty not to delegate authority except under the following circumstances.
Where the principal has expressly permitted delegation.
Custom of trade allows employment of some goods.
Nature of blames necessitates appointments of some agents.
Acts involved are purely ministerial and do not involve exercise of discretion.
Emergence of unforeseen occurrences that render appointment of a sub agent necessary.
Rights of an Agent in Kenya
- An Agent in Kenya has a right to receiving remuneration.
- Rights to retain goods.
- An Agent in Kenya has right of lien (legal possession) of the goods until they are fully compensated.
- Indemnity against consequences of lawful acts.
- Indemnity against acts performed in good faith.
- An Agent in Kenya also has a right to compensation with respect to injuries that are sustained during work.
Termination of an agency in Kenya
There are three ways in which agencies can be terminated in Kenya, by the act of parties or by operation of the law.
Termination by the act of the Parties can be done in three ways, can be terminated by agreement, by revocation by principal and by renunciation by agent.
Termination by operation of the law can be done in seven ways, expiry of time where there was a time limit, death of either the principal or the agents, insanity, destruction of the subject matters, dissolution of a company, the principal or agent becomes an alien enemy and bankruptcy of the principal.
Read more in Business Training in Kenya
Conclusion about Agents in Kenya
According to the information provided above Agents in Kenya have proven to be of great importance in Business Training.