ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
4. Application for a licence
Edition: 2022-12-31 · In force
4. Application for a licence
(1)A mortgage refinance company shall not apply for a licence to conduct mortgage refinance business, unless the company—(a)is a company incorporated under the Companies Act (Cap. 486);(b)meets the capital adequacy requirements set out in the First Schedule; and(c)ensure that its significant shareholders, directors and senior officers meet the fit and proper criteria set out in the Second Schedule.(2)An application for a licence under sub-regulation (1) shall be made in the Form CBK MRC 1-1 set out in the Third Schedule and accompanied by—(a)a duly completed "fit and proper" form for proposed significant shareholders, directors, chief executive officer and other senior officers in form CBK MRC 1-2 set out in the Third Schedule;(b)names and addresses of the shareholders of the company in form CBK MRC 1-3 set out in the Third Schedule;(c)proof of payment of the application fee set out in the Fourth Schedule;(d)a certified copy of the certificate of incorporation of the mortgage refinance company from the Registrar of Companies; and(e)a certified copy of the Memorandum and Articles of Association of the mortgage refinance company.(3)An applicant under this regulation shall submit the following additional information—(a)a certified copy of the Memorandum and Articles of Association of any corporate body that proposes to have a significant shareholding in the mortgage refinance company;(b)a certified copy of the constitutive documents of an unincorporated person that proposes to have a significant shareholding in the mortgage refinance company;(c)a description of the accounting system and the information and communication technology to be used in the operations of the mortgage refinance company;(d)the organization chart, number of employees, positions and job descriptions of senior officers;(e)description of internal control procedures that the mortgage refinance company shall implement;(f)description of shareholders, board and senior officers and strategy for the successful operation of the applicant;(g)description of any intended products and services which the proposed mortgage refinance company intends to provide and how such products and services shall benefit the country;(h)the master servicing and refinancing agreement governing the lending operations between the mortgage refinance company and the participating primary mortgage lenders;(i)the shareholders or investment agreement (where applicable) governing the relationships between shareholders and ensuring that ownership is accessible for primary mortgage lenders meeting the requirements and standards specified by the Bank, in the agreement or in the mortgage refinance company's Memorandum and Articles of Association;(j)the investment policy, credit policy, asset liability management, liquidity management, financial management, code of ethics and business conduct;(k)a sworn declaration signed by every officer as specified in the application form;(l)a business plan of the intended business with financial projections of at least three years; and(m)the financial statements for the last three years, where applicable.