After the recent enactment of Companies Act 2015 and Insolvency Act 2015, various regulations and guidelines have been issued with a view to make the implementation of these acts easier and to resolve areas of conflict or uncertainty.
A new Income Tax Act is expected to be introduced in 2018, amending the 1974 version and modernising the tax system.
Amendments to the Banking Act 2015 (enacted through the Banking (Amendment) Act 2016), capped the rate of interest chargeable by banks, and has significantly tightened credit and liquidity in the country (particularly for the SME sector). According to a recent analysis by Cytonn Investments, access to credit in the private sector is at an eight-year low of 2.1% (in May 2017) compared to 25.8% at its peak in June 2014 (https://www.cytonn.com/topicals/topical-july-23-2017).
The Central Bank of Kenya(CBK) has directed unregulated digital lenders to cease operations in the country following the lapse of the 6-month registration period that required them to comply with the Digital Credit Providers regulations.
Under the said regulations, all digital lenders were expected to apply for licenses from the banking regulator on or before September 17, 2022.
So far, the Central Bank of Kenya has licensed 10 applicants as digital credit providers, pursuant to the CBK Act and the Regulations.
These include Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited, Jijenge Credit Limited, Kweli Smart Solutions Limited, Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokohela Limited.
Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications said CBK.