Kenya’s President signed the Business Laws (Amendment) Bill 2024 (the Bill) into law on 11th December 2024. The version signed into law contains significant amendments to the initial draft, which include:
a) Extended deadline for meeting the minimum core capital requirements
While banks and mortgage finance companies will still be required to maintain a core capital of at least KES 10 Billion, the National Assembly amended the compliance timelines with the effect of extending the ultimate deadline to 31st December 2029 as in the table below:
Compliance Date | Min. Core Capital for Banks and Mortgage Finance Companies |
31st December 2024 | KES 1 Billion |
31st December 2025 | KES 3 Billion |
31st December 2026 | KES 5 Billion |
31st December 2027 | KES 6 Billion |
31st December 2028 | KES 8 Billion |
31st December 2029 | KES 10 Billion |
b) Exemption of banks from licensing requirements for credit guarantee businesses
Licensed banks providing credit guarantees as part of their regular banking business have been exempted from the requirement to apply for a license to carry out credit guarantee business.
c) Additional consumer protection provisions
Non-deposit-taking microfinance businesses are now expressly required by law to comply with data protection, privacy and consumer protection laws in undertaking lending business and in the recovery of debts.
d) Registration of manufacturers with the Kenya Bureau of Standards (KEBS)
The provision providing that manufacturers must register with KEBS was deleted in the assented Bill and hence manufacturers will not be required to register with KEBS as initially proposed.
All in all, we anticipate that these amendments to law will bring about important changes across various sectors of the Kenyan economy. These changes are expected to impact businesses significantly, particularly those operating in the financial services sector, manufacturing, and in SEZs.
Please note that this is not legal advice and is intended primarily for information purposes. If you require tailored advice or further information, please contact us at sarinke@mckayadvocates.com.
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