Non-Deposit taking institutions in Kenya require to be registered as Private Limited Companies. The Registrar of Companies in Kenya will however not approve the registration of such a company without a letter of no objection from the Central Bank of Kenya.

This means that the Central Bank of Kenya has to approve the proposed name of the company and the ownership of the company before the Registrar of Companies can proceed to have the company entered into the Register of Companies in Kenya.

In order for the Central Bank of Kenya to issue a letter of no objection, the company in-incorporation will have to fulfill certain requirements and submit the following documents;

1. A copy of the name reservation of the proposed company from the Registrar of Companies. This should be certified by an Advocate or Commissioner for Oaths.
2. A copy of the registration details of the company as submitted to the Registrar of Companies through the e-Citizen platform. The details, which are captured in 8 -10 pages, should indicate amongst others the name(s) of the shareholder(s) and the proposed business activities of the entity. Applicants will be required to liaise with the Registrar of Companies to get directions on how they can be able to download or screen print the copies of the registration documents. The copies of the registration documents should be certified by an Advocate or a Commissioner for Oaths.
3. A brief background on the shareholders’ business or economic activities.
4. A declaration by the individual shareholders on the sources of funds. The declaration should be certified by an Advocate or a Commissioner of Oaths.
5. Documentary evidence of the sources of funds.
6. An affidavit confirming that the funds to be deployed to the proposed company are not proceeds of crime. The affidavit should be certified by an Advocate or a Commissioner of Oaths.
7. Applicants are required to indicate whether any of the shareholders or directors of the proposed entity are employees (including directors) of any entity regulated by the Central Bank of Kenya.

In addition to the above, the proposed name should not contain the protected words ‘microfinance bank business’ ‘finance’ and ‘bank’ or any of their derivatives or any other words indicating the transaction of financial businesses, unless licensed under the Banking Act or Microfinance Act.

To register a non-deposit taking (credit only) microfinance institution in Kenya, please Contact Us