Microfinance Act

15. Declaration of dividends

Edition: 2024-12-27 · In force

15. Declaration of dividends

(1)No institution shall pay dividends on its shares or make any other form of distribution to its shareholders until all its capitalized expenditure has been written off and provision has been made for bad and doubtful debts in accordance with subsection (2).

(2)Every institution shall—

(a)make provision for bad and doubtful debts before any profit or loss is declared; and

(b)ensure that such provision is adequate in accordance with such guidelines as may be prescribed by the Central Bank.

(3)A person who contravenes the provisions of this section commits an offence and shall be liable, on conviction to a fine not exceeding fifty thousand shillings, or to imprisonment for a term not exceeding two years, or to both.

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Source: Kenya Law