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Kenya - Obtain Authorized Depository License

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Procedure[edit]

  1. To obtain an authorized depository license, the applicant has to contact the Capital Markets Authority offices.
  2. The applicant has to make sure he or she has all the required documents that are required for this process to be successful and they can be found under the "Required Documents" section of this page or in the Application form.
  3. Payment of appropriate fees should be made and that can be found under the "Fees" section of this page or in the Capital Markets Authority's CMA Service Delivery Charter.
  4. On completion of this process, Capital Markets Authority will notify the applicant on any outstanding issues 14 working days after lodging an application and if there are no issues, the Authority will issue to the applicant a license within 25 working days.



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Required Documents[edit]

  • Application form
  • Memorandum and articles of association
  • Certificate of incorporation
  • Business plan
  • A statement of the un-audited accounts for the period of accounting year ending not earlier than six months prior to the date of application and audited annual accounts for the preceding two years (in the case of application of licence), management accounts upto the 30th November and audited annual accounts for the preceding year (in the case of renewal of licence)
  • A declaration by the directors as to whether after due enquiry by them in relation to the interval between the date to which the last accounts have been made and a date not earlier than fourteen days before the date of the application
    • the business of the company has, in their opinion, been satisfactorily maintained;
    • there have, in their opinion, arisen any circumstances adversely affecting the companys trading or value of its assets;
    • there are any contingent liabilities by reason of any guarantees given by the company or any of its subsidiaries;
    • there are, since the last annual accounts, any changes in published reserves or any unusual factors affecting the profit of the company or any of its subsidiaries.
  • A copy of the bank guarantee to be lodged with the securities exchange or the central depository (where applicable).
  • A declaration by persons authorized as prescribed to accompany the application form



Office Locations & Contacts[edit]

Capital Markets Authority

Embankment Plaza, 3rd Floor Longonot Road, off Kilimanjaro Avenue, Upperhill

P.O Box 74800 - 00200

Nairobi, Kenya

Tel: +254- 20- 2264000/ 2264900 / 2221910/ 2221869/ 2226225

Cell: +254 722 207767

Fax: +254- 20-342825

Email: corporate@cma.or.ke

Website: https://www.cma.or.ke

Location: View Map



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Eligibility[edit]

No person is allowed to carry on or hold himself out as carrying on business as an authorized depository unless he is approved as such by the Capital Markets Authority.



Fees[edit]

An application fee of Kshs. 2,500

License fee Kshs. 100,000



Validity[edit]

The licence granted shall remain valid unless suspended or revoked by the Authority.

The Authority may suspend or revoke a license, for such period or until the occurrence of such event as the Authority may specify if a licensed person

  • goes into liquidation or an order is issued for the winding up of the licensed person;
  • carries out any activity outside the scope of the licensed or approved activities;
  • has a receiver or a manager appointed on all or a substantial part of the property of the company;
  • ceases to carry on the licensed business for a period of more than thirty days unless it has obtained the approval of the Authority to do so;
  • any of its directors or key employees has not, in the opinion of the Authority, performed their duties honestly and fairly;
  • has contravened or failed to comply with any condition applicable in respect of the license;
  • fails to comply with a direction of the Authority;
  • fails to provide the Authority with such information as it may require;
  • provides false or misleading information;
  • for any other reason, is no longer fit and proper person to hold a license; or
  • is in breach of any other provision under the Capital Markets Act.



Documents to Use[edit]

Application form



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Sample Documents[edit]

Please attach sample completed documents that would help other people.



Processing Time[edit]

Within 25 working days upon meeting all the requirements.



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 displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	



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Instructions[edit]

  • An application for a licence or for the renewal of a licence should be made to the Authority in the prescribed form and should be accompanied by the prescribed fee and in the case of an application for the renewal of a licence, may be made within three months but not later than one month prior to the expiry of the licence.
  • The Authority may require an applicant to supply such further information as it considers necessary in relation to the application.
  • A licence is only be granted if the applicant meets and continues to meet such minimum financial and other requirements as may be prescribed by the Authority.
  • The Authority may grant a licence to such conditions or restrictions as it thinks fit and the Authority may, at any time by written notice to a licence holder, vary any condition or restriction or impose further conditions or restrictions.
  • The Authority will not refuse to grant a licence without first giving the applicant or holder of a licence an opportunity of being heard.



Required Information[edit]

  • Name of company
  • Registered office
  • Date of incorporation
  • Address
  • Email
  • Location, address and telephone number of principal office
  • Location, address and telephone number of branch offices
  • Details of capital structure
  • Directors
  • Particulars of other directorship(s) of the directors and secretary
  • Particulars of shares held by directors or secretary in other companies
  • Business references
  • Profile of the chief executive and key employees in the applicant company
  • List the office facilities of the applicant
  • State the exact nature of the activity to be carried on which obliges the applicant to apply for a licence from the Capital Markets Authority.



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Need for the Document[edit]

An agent is such as a stockbroker or commercial bank, which holds foreign STOCKS and SHARES on behalf of its owners, and which is authorized to conduct such business.



Information which might help[edit]

The checklists contained in this website reflect a summary of application requirements for various categories of applications that can be made with the Authority for approval to operate as a market intermediary, approved institution or issuer of securities within the Kenyan capital market.

It is important to note that:

1. The checklists are derived from the statutory requirements as set out in the relevant Regulations issued under the Capital Markets Act and are intended only as a simplified guide. Applicants are advised to read and understand the statutory requirements detailed in the relevant Regulations. The Regulations are the only conclusive statement on application requirements and can be accessed in the Regulations section of this Capital Markets Authority's website.

2. The Authority reserves the right to request for any additional information that may be deemed necessary during the course of review of an application.



Other uses of the Document/Certificate[edit]

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



External Links[edit]

CMA Service Delivery Charter

The Capital Markets (Licensing Requirements) (General) Regulations 2002

The Capital Markets Act - Amended 2016

Application Processing Times and Procedures

Licensing and Approvals Overview



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Others[edit]

The Capital Markets Authority is an independent public agency established by an Act of Parliament, Cap 485 A under the Ministry of Finance. The Authority came into being on December 15, 1989 when the Act was passed and was inaugurated in March 1990.

The CMA is a regulating body charged with the prime responsibility of supervising, licensing and monitoring the activities of market intermediaries, including the stock exchange and the central depository and se