PART I – PRELIMINARY
PART II – ESTABLISHMENT, CONSTITUTION AND OBJECTS
PART III – CAPITAL AND RESERVES
PART IV – MANAGEMENT
PART V – CURRENCY
PART VI – EXTERNAL RELATIONS
PART VIA – REGULATIONS OF FOREIGN EXCHANGE DEALINGS
PART VIB – MORTGAGE FINANCING BUSINESS
PART VIC – REGULATION OF DIGITAL LENDERS
33R.Regulation of digital lendersWithout prejudice to the generality of section 4A(da), The Bank shall have power to—(a)license digital credit providers;(b)approve digital channels through which digital credit business may be conducted;(c)determine parameters for pricing of digital credit;(d)supervise digital credit providers;(e)suspend or revoke a license; and(f)direct or require such changes as The Bank may consider necessary. 33S.Licensing(1)A person shall not carry on any digital credit business unless that person has been licensed by The Bank under this Act or is permitted to do so under any other written law.(2)An application for a license under subsection (1) shall be made to The Bank in such form and shall be accompanied by such information and fee as may be prescribed.(3)An application under subsection (2) shall be accompanied by—(a)a copy of the certificate of incorporation under the Companies Act;(b)a certified copy of the applicant’s memorandum and articles of association;(c)a notification of the company’s registered address;(d)a certificate issued pursuant to section 19 of the Data Protection Act;(e)a statement as to compliance with the provisions of Part VII of the Consumer Protection Act; and(f)such other documents as may be prescribed by the Bank.(4)Without prejudice to subsection (3)(e), an applicant shall provide the terms and conditions applicable to the digital credit and which must be accepted by the borrower before activation of a mobile loan account.(5)The Bank may grant or reject an application for a licence by written notice addressed to the applicant within sixty days from the date of receipt of an application.(6)A licence granted under this section shall remain valid unless suspended or revoked by The Bank in accordance with this Act, but upon expiry of the prescribed period may be renewed.(7)The Bank may suspend or revoke a licence by written notice to the holder of the licence, if —(a)the licensee does not meet the conditions prescribed by The Bank;(b)the licensee is in breach of subsection (3) or the conditions of the Data Protection Act or the Consumer Protection Act;(c)the licensee is found to have given false information during the application;(d)the licensee goes into liquidation or an order for winding up is issued;(e)the carries out activities outside the scope of the licensed activities;(f)the licensee is in breach of any of the provisions of this Act and the regulations made thereto relating to digital lending.(8)Without prejudice to subsection (6), an applicant may apply for renewal of the licence at least three months before expiry of the licence.(9)The Bank shall cause to be published in the Gazette and The Bank’s website—(a)before the thirtieth day of March in each year, the names and addresses of all licenced digital lenders under this section;(b)within thirty days of suspension or revocation of a license, the name and address of the digital lenders whose licences have been suspended or revoked.(10)A person who contravenes the provisions of this section commits an offence and shall be liable upon conviction to imprisonment for a term not exceeding three years or to a fine not exceeding five million shillings or to both. 33T.ConsultationThe Bank shall consult with other regulators including but not limited to the—(a)the Office of the Data Protection Commissioner; and(b)the Communications Authority. 33U.Disclosure of credit informationNotwithstanding the provisions of this section, a digital lender shall disclose any positive or negative information of its customers to the licensed credit reference bureaus, where such information is reasonably required for the discharge of the functions of the digital lenders and the licensed credit reference bureaus. PART VII – RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS
34.Banker to institutions(1)The Bank shall open accounts for and accept deposits from, collect monetary claims for and on account of institutions and generally act as banker to institutions.(2)The Bank may provide any additional services or facilities that it considers desirable including facilities for clearing financial instruments to institutions operating in Kenya.(3)For the purposes of this section, “institution” includes—(a)a specified bank;(b)a specified financial institution;(c)a specified microfinance bank;(d)any other person or body of persons which the Minister may, on the recommendation of the Bank, and by notice in the Gazette, prescribe. 35.RepealedRepealed by Act No. 9 of 1996, s. 14. 36.Loans(1)The Bank may grant loans or advances for fixed periods not exceeding six months to specified banks and specified microfinance banks which pledge treasury bills or other Government securities specified by the Bank.(2)Except as provided in this section, the Bank shall not extend credit directly, or indirectly to specified banks or specified microfinance banks.(3)The Bank may determine the general terms and conditions under which it extends credit to specified banks and specified microfinance banks, and in particular, the Bank shall determine and announce the rates of interest or return it shall charge for granting loans or advances to specified banks and specified microfinance banks in accordance with this section, and may determine different rates of interest or return for different classes of transactions or maturities.(4)The Bank shall publish the lowest rate of interest it charges on loans to banks and microfinance banks, and that rate shall be known as the central bank rate. 36A.Publication and sharing of information(1)The Central Bank shall publish in the Gazette, the Central Bank website and two daily newspapers of national circulation the following information—(a)the weighted average lending and deposit rates for all banks and financial institutions;(b)the interest rate spread and its composition;(c)a simplified version of the balance sheets and income statements.(2)Notwithstanding the provisions of this section, a bank shall disclose any positive or negative information of its customers to the licensed credit reference bureaus, where such information is reasonably required for the discharge of the functions of the banks and the licensed credit reference bureaus. 36B.Reports to ParliamentThe Central Bank shall, on a quarterly basis, make and present to Parliament a report on the key economic and banking sector aggregate. 37.RepealedRepealed by Act No. 9 of 1996, s. 16. 38.Reserve requirement(1)The Bank may from time to time require institutions to maintain minimum cash balances on deposit with the Bank as reserves against their deposit and other liabilities.(2)The Bank may specify ratios for different types of liabilities and may further specify the method of computing the amount of the total liabilities of an institution but the ratios specified shall be the same for all institutions:Provided that nothing in this subsection shall be construed to prevent the Bank from allowing an institution or group of institutions upon which the provisions of subsection (1) are applied for the first time, a period within which to comply with the cash reserve ratio requirements as may be prescribed by the Bank.(3)Any specification of, or increase in the minimum reserve requirements under subsection (1) or subsection (2) shall take effect only after the expiration of thirty days’ notice to the institution of the Bank’s intention to take action.(4)The Bank may impose on any institution which fails to maintain the sufficient minimum cash balances required under this section, a penalty charge not exceeding one percent per day on the amount of the deficiency or ten thousand shillings, whichever is the higher for each day for which the deficiency continues.(5)The Bank may, if in its opinion circumstances of an unusual nature render it desirable so to do, pay a return and subject to such qualifications as it may determine on minimum cash balances deposited with the Bank under this section.(6)For the purposes of this section, “institution” includes—(a)a bank licensed under the Banking Act (Cap. 488);(b)a financial institution licensed under the Banking Act (Cap. 488);(c)any other person or body of persons which the Minister, on the recommendation of the Bank may by notice in the Gazette prescribe. 39.RepealedRepealed by Act No. 8 of 2004, s. 4. 39A.RepealedRepealed by Act No. 8 of 2004, s. 5. 40.RepealedRepealed by Act No. 9 of 1996, s. 17. 41.RepealedRepealed by Act No. 9 of 1996, s. 17. 42.RepealedRepealed by Act No. 56 of 1968, s. 33. 43.Information to be furnished by specified banks, etc(1)Every specified bank, specified financial institution, specified microfinance bank, specified mortgage refinance companies and specified digital credit providers shall furnish to the Bank, at such time and in such manner as the Bank may prescribe, any information and data the Bank may reasonably require for the proper discharge of its functions under this Act.(2)The Bank may publish in whole or in part, at such times and in such manner as it may decide, any information or data furnished under this section:Provided that no such information shall be published which would disclose the financial affairs of any person or undertaking unless the prior consent in writing of such person or undertaking has first been obtained by the Bank. PART VIII – RELATIONS WITH PUBLIC ENTITIES
PART IX – MISCELLANEOUS PROVISIONS
PART X – TRANSITIONAL PROVISIONS
SCHEDULE
