ADVOKS GLOBAL · KENYA
Microfinance Act
4. Qualifications for carrying out deposit-taking microfinance business
Edition: 2024-12-27 · In force
4. Qualifications for carrying out deposit-taking microfinance business
(1)No person shall carry out any deposit-taking microfinance business, hereinafter referred to as “deposit-taking business”, unless such person is—(a)a company registered under the Companies Act (Cap. 486) whose main objective is to carry out such business; or(b)a wholly-owned subsidiary of a bank or a financial institution whose main objective is to carry out such business; and(c)licensed under this Act.(2)The provisions of subsection (1) shall not apply to a duly approved agency conducting deposit-taking business on behalf of an institution.(3)Where an agency conducts deposit taking business on behalf of an institution in accordance with this Act, the institution shall be liable for the acts of the agency in so far as such acts relate to that business.(4)A person who contravenes the provisions of this section commits an offence and shall be liable, on conviction, to a fine not exceeding one hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both.