ADVOKS GLOBAL · KENYA
The Central Depositories (Regulation of Central Depositories) Rules
8. Fees, levies and penalties
Edition: 2025-02-14 · In force
8. Fees, levies and penalties
(1)The central depository shall charge such fees and levy such transaction and depository levies and penalties as approved by the Authority.(2)The fees and penalties levied by a central depository will be reviewed every two years provided that the same may be reviewed earlier at the instance of either the Authority or the central depository in the event of exceptional circumtance as defined in sub rule (5).(3)In carrying out such review the Authority will take into account the following—(a)the rate of inflation;(c)overall transaction fees in the market;(d)viability and sustainability of the central depository;(e)overall interest of the investors; and(f)views of other market participants.(4)To facilitate continuous monitoring and assessment of adequacy or otherwise of the fees charged, the central depository shall furnish the Authority with updated information every six months on the following—(a)actual and projected volumes of trade;(b)actual and projected revenue;(c)achieved and projected efficiency measures;(d)proposed major capital expenditures.(5)The central depository may initiate a review, in exceptional circumstances, which shall be deemed to be in any or a combination of the following reasons for any period of twelve months and compared to that of the preceding twelve months—(a)a doubling of the Kenyan rate of inflation as published by the Central Bureau of Statistics;(b)a doubling of reported income of the central depository;(c)a reduction of the reported gross revenue of the central depository by more than fifty per cent.(6)Where a central depository, in the case of exceptional circumstances, wishes to initiate a review as envisaged in subrule (4) the central depository shall notify the Authority of the proposal to review the fees in writing justifying the proposed changes provided that no such review will be considered less than six months before the next scheduled review.(7)Where the Authority initiates a review by reason of exceptional circumstances it shall notify the central depository of the review justifications for the proposed review and the central depository will be accorded an opportunity to make representations on the proposed changes before the final decision is made.(8)Where the Authority or the central depository initiates a review by reason of exceptional circumstances the review will be completed within 90 days of the notice issued by the initiating party.(9)The Authority will ensure that a scheduled review process is completed not later than the second anniversary of the approval of the existing fees.(10)If the central depository is dissatisfied with the outcome of the review exercise it may apply for a review to the Capital Markets Tribunal established under the Capital Markets Act (Cap. 485A).(11)The fees prevailing before the appeal shall remain until the decision of the Tribunal is made.(12)The central depository and all central depository agents shall prominently display all approved fees, charges, levies and other imposts at their business premises.