ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
50. Appointment of external auditor
Edition: 2022-12-31 · In force
50. Appointment of external auditor
(1)A mortgage refinance company shall, in each year, appoint an external auditor who shall be a member of the Institute of Certified Public Accountants of Kenya in good standing and approved by the Bank.(2)A mortgage refinance company shall not remove or change its external auditor except with the prior approval of the Bank.(3)An external auditor shall make a report to the Board of Directors identifying key concerns with respect to the financial condition of the business.(4)An external auditor shall, within three months after the end of each financial year, submit an audit report to the Bank, on the financial condition of the business.(5)An external auditor's reports submitted under sub-regulation (4) shall contain information on the—(a)solvency of the business;(b)any violation of a condition imposed on the licence; and(c)any other contravention of the Act or these Regulations.(6)The Bank may require an external auditor to undertake such additional duties as may be determined from time to time.(7)If the external auditor of a mortgage refinance company, in the course of the performance of his duties under this Act, is satisfied that—(a)there has been a serious breach of or non-compliance with the provisions of the Act, or the regulations, guidelines or other matters prescribed by the Bank;(b)a criminal offence involving fraud or other dishonesty has been committed by a mortgage refinance company or any of its officers or employees; or(c)losses have been incurred which reduce the core capital of a mortgage refinance company by fifty per centum or more,shall immediately report the matter to the Bank.(8)If an external auditor of a mortgage refinance company fails to comply with the requirements of the Act or these Regulations, the Bank may remove the auditor from office and appoint another auditor.