ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
28. Credit extensions
Edition: 2022-12-31 · In force
28. Credit extensions
(1)A mortgage refinance company may extend loans to primary mortgage lenders who are in good standing.(2)A primary mortgage lender is considered to be in good standing if it—(a)meets its payment obligations;(b)has not received a qualified opinion on its most recent audited financial statements;(c)meets the capital adequacy requirements;(d)complies with regulatory requirements; and(e)meets any other conditions set by the Bank and a mortgage refinance company.(3)A mortgage refinance company shall set single borrower limits in its credit policy and the limits shall comply with any requirement provided for by the Bank.(4)A mortgage refinance company shall extend a loan to a primary mortgage lender subject to its credit policy and any requirements of the Bank and shall provide clear disclosures of the terms and conditions of the loan to the borrower including—(a)charges and fees, if any;(b)interest rate to be charged and whether on a reducing balance or not; and(c)total cost of credit which shall include the principal amount, interest, fees and charges.(5)The Bank shall approve the criteria for mortgages eligible for refinancing under these Regulations.(6)A refinanced mortgage to a director, chief executive officer or senior officer of a primary mortgage lender shall be on terms similar to those offered to ordinary customers of the primary mortgage lender.