ADVOKS GLOBAL · KENYA
Capital Markets Act
30. Procedure for collective investment schemes
Edition: 2025-12-11 · In force
30. Procedure for collective investment schemes
(1)No person shall carry on any business or engage in any activity as a collective investment scheme, in or from within Kenya, unless such person is registered under this Act.(2)The promoters of a collective investment scheme that is proposed to be formed, may apply to the Authority for consent to register a collective investment scheme upon complying with the requirements prescribed under this Act.(3)Where the Authority grants its consent under subsection (2), the promoters of the proposed collective investment scheme shall, within three months from the date of granting such consent, deliver to the Authority—(a)in the case of a unit trust or investment company, satisfactory proof that the proposed collective investment scheme is lawfully constituted in Kenya;(b)in the case of a mutual fund, proposed incorporation documents and such other information or documents as may be stipulated by the Authority; and(c)an application in the prescribed form for registration as a collective investment scheme accompanied by the prescribed fee.(4)If the Authority is satisfied that the applicant has complied with all the requirements, it shall register the collective investment scheme and issue to the applicant a certificate of registration in the prescribed form.(5)In the case of a collective investment scheme to be set up as a mutual fund, upon the issue of a certificate of registration under subsection (4), a body corporate shall be deemed to have been incorporated as a collective investment scheme with variable capital, notwithstanding the provisions of the Companies Act (Cap. 486).(6)Notwithstanding the requirements of subsection (1), any person whom immediately before the commencement of this Act was carrying on business as an investment company within the meaning of this Act shall be entitled to carry on such business without registration for a period of six months from such commencement:Provided that such person shall apply for and obtain registration under this Act prior to the expiration of such period.(7)During the period referred to in subsection (6), the investment company shall be subject to all the provisions of this Act except the requirement as to registration.(8)No registered collective investment scheme shall, in or outside Kenya, offer its shares to the public unless prior to such offer, it publishes in writing an information memorandum signed by or on behalf of its officers and files a copy thereof with the Authority.(9)Every information memorandum under subsection (8) shall comply with such requirements as may be prescribed by the Authority.(10)Subject to the provisions of this Act, any regulations, rules, guidelines or notices issued thereunder, or anything contained in the articles of association or information memorandum, a mutual fund shall be a body corporate with perpetual succession and a common seal and shall be capable, in its corporate name, of doing and performing all things and acts which may lawfully be done by a body corporate.