ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements)(General) Regulations, 2025
41. Application for licence
Edition: 2025-12-11 · In force
41. Application for licence
(1)Any person who intends to carry on business as a custodian shall apply to the Authority for a licence.(2)The application under subregulation (1) shall be in Form 1 as set out in the First Schedule and accompanied by the fee prescribed in the Sixth Schedule.(3)A person is eligible to be granted a licence to carry on business as a custodian if that person—(a)is a bank licensed by the Central Bank of Kenya; or(b)is a licensed financial institution that has the capacity and expertise to carry on business as a custodian and has—(i)a paid-up share capital of at least one billion shillings; and(ii)a liquid capital of at least fifty million shillings or liquid capital that is equal to eight per cent of its liabilities, which must be maintained throughout the duration of the licence.(4)An application under subregulation (1) shall be accompanied by—(a)a certificate of incorporation;(b)articles and memorandum of association which shall be required to specify that the applicant was formed to carry on custodian business;(c)audited financial statements for the preceding two years and six months unaudited, financial statements where relevant;(d)business plan containing the particulars as set out in the Second Schedule;(e)the organisational structure of the applicant;(f)shareholding structure of the applicant detailing the number of shares, the percentage holding and including the ultimate beneficial shareholding of all corporate shareholders and any existing trusts if applicable;(g)details about the external auditor;(h)details about the company secretary;(i)a risk management framework; and(j)duly filled and executed fit and proper forms for directors, the head of custodial services and key personnel.