RESTRICTION ON CARRYING ON BUSINESS IN KENYA-
No person in Kenya can under Kenya law -
(a) transact any banking business or financial business or the business of a mortgage finance company unless it is an institution or a duly approved agency conducting banking business on behalf of an institution which holds a valid licence;
(b) unless it is a bank and has obtained the consent of the Central Bank, use the word “bank” or any of its derivatives or any other word indicating the transaction of banking business, or the equivalent of the foregoing in any other language, in the name, description or title under which it transacts business in Kenya or make any representation whatsoever that it transacts banking business;
(c) unless it is a financial institution or mortgage finance company and has obtained the consent of the Central Bank, use the word “finance” or any of its derivatives or any other word indicating the transaction of financial business or the business of a mortgage finance company, or the equivalent of the foregoing in any other language, in the name, description or title under which it transacts business in Kenya or make any representation whatsoever that it transacts financial business
APPLICATION FOR LICENSE- Under Kenya laws,every institution intending to transact banking business, financial business or the business of a mortgage finance company in Kenya should, before commencing such business, apply in writing to the Central Bank for a licence.The Central Bank shall, where it is satisfied as to the professional and moral suitability of persons proposed to manage or control the institution, certify that such persons are fit and proper persons to manage or control the institution.
In considering an application for a licence, the Central Bank may require to be satisfied as to-
(a) the financial condition and history of the institution;
(b) the character of its management;
(c) the professional and moral suitability of the persons proposed to manage or control the institution;
(d) the adequacy of its capital structure and earning
prospects;
(e) the convenience and needs of the area to be served; and
(f) the public interest which will be served by the granting of the licence.
REVOCATION OF LICENSE- The Central Bank may, by notice in writing to the institution, revoke a licence if the institution -
(a) ceases to carry on business in Kenya or goes into liquidation or is wound up or is otherwise dissolved; or
(b) fails to comply with this Act, the Central Bank of Kenya Act or any rules, regulations, orders or directions issued under any of those Acts or any condition of a licence:
Provided that -
(i) the Central Bank, before revoking a licence, shall give to the institution not less than twenty-eight days’ notice in writing of the Central Bank’s intention, and shall consider any representations made to the Central Bank in writing by the institution within that period before revoking the licence;
(ii) the institution may, notwithstanding that its licence has been revoked, continue to carry on its business for the purpose of winding up its affairs for such period as the Central Bank may determine so long as it does not accept new deposits, open new current accounts or make any loans or investments.
LOCATION OF PLACES OF BUSINESS- No institution should open in Kenya a branch or a new place of business or change the location of a branch or an existing place of business in Kenya without the approval of the Central Bank.Before granting an approval, the Central Bank may require to be satisfied as to -
(a) the history and financial condition of the institution;
(b) the character of its management;
(c) the professional and moral suitability of its management;
(d) the adequacy of its capital structure and earning prospects;
(e) the convenience and needs of the area to be served, and that the public interest will be served by the opening of a branch or a new place of business or, as the case may be, the change of location of the place of business.
BRANCHES AND SUBSIDIARIES- No institution should under Kenya laws open a branch or establish a subsidiary outside Kenya, except with the prior approval of the Minister.An institution seeking approval under should apply, in writing, to the Minister through the Central Bank.Before granting approval under, the Minister may require to be satisfied as to-
(a) the history and financial condition of the institution;
(b) the adequacy of the institution’s capital structure;
(c) the viability and earning prospects of the proposed branch or subsidiary; and
(d) such other matter as may have a bearing on the institution or proposed branch or subsidiary as the
An institution intending to close any of its branches or subsidiaries outside Kenya shall give notice in writing to the Minister, through the Central Bank of its intention, at least six months before the date of the intended closure, or within such shorter period as the Minister may, in any particular case, allow.