Lien
under Kenya law is a right to retain property belonging to a debtor until the debtor
has discharged the debt due to the creditor. This form of protection
known as the general lien of bankers arose from usage of trade from time
immemorial and is judiciary recognized.
The
nature of the securities Subject to the lien must come to the bank in
its capacity as a banker and in the course of banking business.
Securities held by a bank or deposited with a bank for safe custody are
not subject to the lien unless there is an agreement between the parties
to the contrary.
Does
a lien give the bank the right to sell? a mere lien gives no power of
sale, neither does it give a ground for applying to court to grant the
power of sale. The method that appears open to a banker for realising
securities held under a lien would seem to be to sue for the debt obtain
injunction for the debt, and then take the securities in execution of
that judgment.
The
right of lien under Kenya law extends only to the customers own property and not to
property held in trust by the customer for their clients.