Wikiprocedure > Kenya


Kenya - Apply for a Banking Business license

From Wikiprocedure
Jump to: navigation, search

Advertisement

Procedure[edit]

Apply In Person

  1. To apply for a Banking Business license, the applicant should make the application to the Central Bank of Kenya (CBK). Please view the Central Bank of Kenya contact details through this CBK Contact Details.
  2. Prior to making the application for the license, the applicant should first contact the Central Bank of Kenya at an early stage for a preliminary meeting to discuss the CBK licensing requirements and related issues.
  3. Then the applicant should seek approval from the Central Bank of Kenya to use the word “bank” in the proposed name of the bank.
  4. The Central Bank of Kenya will evaluate the applicant's request to use the word “bank” and approve the request.
  5. Upon approval of the name by the Central Bank of Kenya, the applicant should apply to the Registrar of Companies for incorporation of the proposed bank, as a limited liability company.
  6. Once the proposed bank is registered as a limited liability company, the applicant should proceed with the banking license application from the Central Bank of Kenya by obtaining the necessary application forms. The forms can be downloaded through the Central Bank of Kenya website Application forms (Commercial Bank and Mortgage Finance Application Forms).
  7. Download and complete the following forms correctly
  8. Then the applicant should obtain the following documents and attach them to the completed Application form for a License to Conduct the Business of an Institution Form CBK IF 1-1.
    • Certified copy of the certificate of incorporation of the institution.
    • Certified copy of the Memorandum and Articles of Association of the proposed institution.
    • Certified copy of the Memorandum and Articles of Association of any corporate body that proposes to have a significant shareholding in the institution.
    • Certified copy of the latest audited financial statements for each of the three years immediately preceding the date of the application if the applicant has been operating in any sector under any name and laws or in cases where any of the shareholders is a corporate body.
    • Where the proposed significant shareholders are natural persons, certified personal statements of affairs for the past three years should be submitted.
    • A feasibility study of the future operations and development of the intended business of the bank for a minimum period of three years from the date of the application should also be submitted.
    • Sources and evidence of the availability of capital. Currently, a minimum capital of Kshs 1 billion is required to start a commercial bank company.
    • Every proposed individual and institutional shareholder should submit, as part of the sworn declaration in the “Fit and Proper” - Form CBK IF 1-3, a statement to the effect that the proposed capital is not from proceeds of crime or illicit activities.
    Note that in the case of an institution incorporated outside Kenya, in addition to notarized copies of the documents mentioned above, the following should also be submitted:
    • A notarized copy of the signed minutes of the board of the institution or other prime oversight body passing the resolution to establish a branch or subsidiary in Kenya.
    • An undertaking by the board or other oversight body to maintain minimum assigned capital in the proposed branch or subsidiary in Kenya as per the Banking Act and that such capital shall be in Kenya shillings.
    • The name and contact details of a designated person(s) from the Head Office authorized to liaise with the Central Bank on the application on behalf of the institution.
    • A letter of no objection from the home supervisory authority recommending the applicant to establish a branch or subsidiary in Kenya should be obtained. The letter should be forwarded directly to the Director, Bank Supervision Department, Central Bank of Kenya, P.O. Box 60000-00200, Nairobi.
    • There shall be an understanding that the home country supervisor will exchange supervisory information with the Central Bank of Kenya.
    • Confirmation from the home country supervisor that the promoters of the foreign incorporated bank do not operate a shell bank should be obtained.
    • Where necessary, confirmation from the home supervisor that the supervisor conducts consolidated supervision.
    • Sworn declarations signed by every officer as specified in the application forms.
  9. Then the applicant should pay a non-refundable application fee, payable by banker’s cheque in favor of the Central Bank of Kenya or such other mode of payment as the Central Bank of Kenya may prescribe or as specified under the Fourth Schedule to the Banking Act. Note that the application fee is currently Kshs 5,000.
  10. Upon making the payment, the applicant should submit the completed application along with all the required supporting documents to the Central Bank of Kenya office.
  11. The Central Bank of Kenya will evaluate the application and if it meets all the requirements, the Central Bank will grant the applicant the approval in principle to conduct the business of a bank.
  12. Once the approval is obtained by the applicant, the applicant may proceed to obtain premises, Information Technology Systems, put in place other necessary operating facilities, and recruit staff for the institution.
  13. Then the applicant should invite the Central Bank to inspect the banking facility.
  14. If the inspection is satisfactory, and before issuance of the license by the Central Bank of Kenya, the applicant will be required to pay the prescribed annual license fees. The prescribed annual license fees are payable in full for the year during which the license is initially issued, and shall not be prorated for validity periods less than 12 months.
  15. Once the requisite license fees have been paid, the Central Bank places a notice in the Kenya Gazette to formally specify the institution.
  16. A license is then issued and the newly licensed institution can open as a bank.



Advertisement

Required Documents[edit]

  • Completed application forms
  • Application fees payment receipt.
  • Certified copy of the certificate of incorporation of the institution.
  • Certified copy of the Memorandum and Articles of Association of the proposed institution.
  • Certified copy of the Memorandum and Articles of Association of any corporate body that proposes to have a significant shareholding in the institution.
  • Certified copy of the latest audited financial statements for each of the three years immediately preceding the date of the application if the applicant has been operating in any sector under any name and laws or in cases where any of the shareholders is a corporate body.
  • Where the proposed significant shareholders are natural persons, certified personal statements of affairs for the past three years should be submitted.
  • A feasibility study of the future operations and development of the intended business of the bank for a minimum period of three years from the date of the application should also be submitted.
  • Sources and evidence of the availability of capital. Currently, a minimum capital of Kshs 1 billion is required to start a commercial bank company.
  • Every proposed individual and institutional shareholder should submit, as part of the sworn declaration in the “Fit and Proper” - Form CBK IF 1-3, a statement to the effect that the proposed capital is not from proceeds of crime or illicit activities.


  • Note that In the case of an institution incorporated outside Kenya, in addition to notarized copies of the documents specified above, the following should also be submitted:
    • A notarized copy of the signed minutes of the board of the institution or other prime oversight body passing the resolution to establish a branch or subsidiary in Kenya.
    • An undertaking by the board or other oversight body to maintain minimum assigned capital in the proposed branch or subsidiary in Kenya as per the Banking Act and that such capital shall be in Kenya shillings.
    • The name and contact details of a designated person(s) from the Head Office authorized to liaise with the Central Bank on the application on behalf of the institution.
    • A letter of no objection from the home supervisory authority recommending the applicant to establish a branch or subsidiary in Kenya should be obtained. The letter should be forwarded directly to the Director, Bank Supervision Department, Central Bank of Kenya, P.O. Box 60000-00200, Nairobi.
    • Sworn declarations signed by every officer as specified in the application forms.



Office Locations & Contacts[edit]

Central Bank of Kenya - Head Office
Haile Selassie Avenue
P.O Box 60000 – 00200,
Nairobi, Kenya
Tel / Fax: +254 20 286 0000
Phone: +254 20 286 1000, +254 20 286 3000, +254 709 081 000, +254 709 083 000
Email: [email protected]
CBK Contact Details

Eligibility[edit]

  • Individuals and companies who wish to open a bank in Kenya.



Fees[edit]

  • The bank name a search and reservation fee of Ksh.1000
  • The application fee is Ksh. 5,000 for a new license (fees are in bankers cheque payable to the Central Bank of Kenya)
  • The license fee of Ksh. 100,000



Validity[edit]

  • The license is valid for one year and is eligible for renewal.



Documents to Use[edit]



Sample Documents[edit]

Please attach sample completed documents that would help other people.



Processing Time[edit]

  • The license is processed within four months.



Related Videos[edit]

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is dkisplayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.



Instructions[edit]

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since January 1908.


Required Information[edit]

  • Name of applicant
  • Head/ Main office
  • Physical and postal address of head office/ proposed new outlet
  • Date of incorporation
  • Form of incorporation
  • Description of the applicants business or functions
  • Certificate of incorporation Number
  • Details of subsidiaries and affiliates (Name of Outlet, County, City/Town, Street, Building, Date opened)
  • Particulars of shareholders (Name, Nationality, Date of acquisition, Amount of shareholding, % of shareholding)
  • Particulars of directors (Name, Nationality, Date of appointment, level of education)
  • Particulars of the officers in the order of seniority (Name, Designation, Nationality, Date of appointment)
  • Ownership profiles
  • Shareholding in any other financial institution
  • Name of applicants external auditors
  • Declaration



Need for the Document[edit]

  • This license allows the holders to operate a Bank in Kenya and any person who operates a Commercial Bank without a valid license commits an offense and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both.



Information which might help[edit]



Other uses of the Document/Certificate[edit]

Please explain what are other uses for obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.



External Links[edit]



Others[edit]

More information which might help people.