Kenya: Microfinance Bill

This paper is the 'Microfinance Bill' as legislated by the Government of Kenya in 2002. It contains statutory provisions for carrying out the microfinance services in the country.

The decree details the following provisions applicable for carrying out microfinance services:

• Interpretation of the application of this Act and definition of common terms;
• Description of the requirements for obtaining a valid license to operate microfinance business; also the list of the prudential standards integral for carrying out the microfinance business;
• Imposition on certain restrictions on MFIs that are into this business;
• The corporate governance and ownership issues of MFIs;
• The principles for accounting standards and auditing that need to be followed.

The document concludes with the provisions applicable for:

• Reporting requirements of MFIs;
• Supervision and control of MFIs;
• Powers of the Central Bank;
• Winding up/liquidation of MFIs by the Central Bank;
• Contribution to the Deposit Protection Fund by an MFI.