How to Discharge a Logbook from a Logbook Loan Company in Kenya

If you’ve finished paying off your logbook loan—or you’ve secured a buyoff loan from another lender—the next crucial step is to discharge your logbook. This process removes the lender’s claim over your vehicle in the National Transport and Safety Authority (NTSA) records, returning full ownership to you.

In this guide, we’ll cover what discharging a logbook means, why it matters, and the step-by-step process whether you’ve fully cleared your loan or are moving your loan to a new lender.

What Does Discharging a Logbook Mean?

When you take a logbook loan, the lender places an encumbrance (a legal claim) on your vehicle in NTSA’s TIMS system. This means:

• You cannot sell the vehicle without the lender’s consent
• The vehicle acts as collateral for the loan

Discharge means the lender removes this claim, updating the NTSA records to reflect you as the sole owner again.

Why Discharging Is Important

• Full Ownership: Without discharge, the lender still has legal rights over your car.
• Resale: You cannot transfer ownership to a buyer if an encumbrance exists.
• Future Loans: Another lender may reject your application if the vehicle shows an active loan.

When You Need to Discharge a Logbook

1. After clearing your logbook loan – Once the last payment is made.
2. When getting a buyoff loan – If another lender is paying off your existing loan to take over the security.

Step-by-Step Process for Discharging Your Logbook

1. Clear Your Loan Balance

• Make sure all payments, interest, and fees are fully settled.
• Ask for a loan clearance letter confirming you’ve repaid in full.

2. Request a Discharge from the Lender

• The lender will log into NTSA TIMS and initiate the discharge.
• They upload a discharge letter and release the encumbrance in the system.

3. NTSA Processing

• Once the lender submits the discharge, NTSA reviews and updates the records.
• This process can take 2–5 working days, depending on NTSA workload and lender efficiency.

4. Confirm Discharge on TIMS

• Log into your NTSA TIMS account.
• Under "View Vehicle Records", check if the encumbrance is gone and ownership shows only your name.

For Buyoff Loans: Additional Steps

When another lender is paying off your loan:

1. New lender pays the old lender directly.
2. Old lender initiates discharge in NTSA TIMS.
3. Once discharged, new lender registers their own encumbrance in TIMS.

Tips for a Smooth Discharge

• Always get a loan clearance letter in writing.
• Follow up with both your lender and NTSA if delays occur.
• Keep copies of all correspondence and receipts.
• For buyoffs, ensure both lenders coordinate to avoid gaps or disputes.

Common Challenges and How to Overcome Them

Frequently Asked Questions: Discharging a Logbook in Kenya

How long does it take to discharge a logbook?
It usually takes 2–5 working days once the lender initiates the process in NTSA TIMS. Delays can occur if the lender takes long to start or if NTSA has a backlog.

Can I sell my car without discharging the logbook?
No. An encumbrance means the lender still has legal rights over your vehicle, and NTSA won’t process a transfer to a new owner until it’s discharged.

What happens if I don’t discharge my logbook after paying off my loan?
The lender’s claim will remain on your NTSA records, limiting your ability to sell, transfer, or use the vehicle as collateral for another loan.

Do I need to visit NTSA in person for discharge?
Not necessarily. Most discharges are handled online through the lender’s TIMS account. You can monitor progress via your own NTSA account.

For buyoff loans, can the new lender handle everything?
Yes, reputable lenders coordinate directly with the old lender and NTSA to complete the discharge before registering their own encumbrance.

 Remember!

If you need quick, transparent logbook loan, contact us through our contact form, call us on +254791573231 or visit one of our branches across Nairobi, Kiambu, Machakos, and Kajiado counties to explore your financial options.