ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
55. Powers of the Bank to issue directions
Edition: 2022-12-31 · In force
55. Powers of the Bank to issue directions
(1)If, at any time, the Bank has reason to believe that—(a)the business of a mortgage refinance company is being conducted in a manner contrary to or not in compliance with the requirements of the Act, these Regulations or guidelines issued by the Bank or in any manner detrimental to or not in the best interests of its creditors or members of the public; or(b)an institution, any of its officers or other person participating in the general management of the mortgage refinance company is engaged in any practice likely to occasion a contravention of any of the provisions of the Act, these Regulations or guidelines issued,the Bank may—(i)give advice and make recommendations to the mortgage refinance company with regard to the conduct of its business generally;(ii)issue directions regarding measures to be taken to improve the management or business methods of the mortgage refinance company or to secure or improve compliance with the requirements of the Act, the Regulations or guidelines issued or any other written law or regulations;(iii)in any case to which paragraph (b) applies, issue directions to the institution, officer or other person to cease such practice;(iv)appoint a person, suitably qualified and competent in the opinion of the Bank, to advise and assist the mortgage refinance company generally or for the purposes of implementing any directions under subparagraphs (ii) and (iii) and the advice of a person so appointed shall have the same force and effect as a direction made under subparagraphs (ii) and (iii) and shall be deemed to be a direction of the Bank.(2)The Bank may, before issuing a direction under sub-regulation (1), serve upon the mortgage refinance company, officer or other person, a notice of such intent specifying the reasons therefor and requiring the mortgage refinance company, officer or other persons, within such period as may be specified in the notice, to show cause why such direction should not be issued.(3)A mortgage refinance company which receives a direction under the provisions of this regulation shall comply with the direction within such period as may be specified in the direction and, if so required, shall produce evidence that it has done so.(4)The Bank may issue directions to mortgage refinance companies generally for the better carrying out of its functions and in particular, with respect to—(a)the standards to be adhered to by a mortgage refinance company in the conduct of its business; and(b)guidelines to be adhered to by mortgage refinance companies in order to maintain a stable and efficient banking and financial system.