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Trade In services

Banking and Finance

Insurance

The Insurance Regulatory Authority (IRA) is the regulatory body responsible for the insurance sector. It is established under section 3 of the Insurance Act and licenses all persons involved in or connected with insurance business, including insurance and reinsurance companies, insurance and reinsurance intermediaries, loss adjusters and assessors, risk surveyors and valuers.

Form of established allowed

There are no restrictions on establishing or operating representative offices in Kenya and foreigners can incorporate a company or a subsidiary.

Ownership and shareholding requirements

The maximum shareholding that non-citizen persons can acquire in an insurance company is 2/3 (66.66%) of the issued share capital. This is because the Insurance Act requires that at least 1/3 (33.33%) of the controlling interest (whether in terms of shares, paid up share capital or voting rights) be wholly under the control of citizens of a partner state of the East African Community (EAC) or by partnership whose partners are all citizens of a partner state of the EAC or by a corporate body whose shares are wholly owned by citizens of a partner state of the EAC or is wholly owned by the Kenyan Government.

Further no one person can control, directly or indirectly, more than 25% of the paid-up share capital or voting rights of an insurer. This means that although non-citizen persons can acquire upto 66.66% of the issued share capital of a licensed insurance company, no single person can own more than 25% of the issued share capital. The 25% requirement does not apply to: (a) a corporate entity licensed by an insurance, banking, pensions or securities regulator in Kenya; or (b) a foreign corporate entity licensed by an insurance, banking, pensions or securities regulator in its country of origin or (c) The Government of Kenya; (d) A state corporation within the meaning of the State Corporations Act or (e) A company listed in a stock exchange

Scope of business

An investor is entitled to carry on only the class of insurance business for which he/she has registered

Requirements for the Board Members of the insurance company

At least one third of the members of the board of directors or managing board have to be citizens of Kenya. The Principal officer is also required to be a resident of Kenya.

Expansion of business/Operations

Expansion of the business requires approval from the Insurance Regulatory Authority

Restrictions on writing insurance contracts in foreign currency

Section 79 of the Act requires that the premium or any other sum of money mentioned in a policy be stated in the currency of Kenya unless the parties to the policies have expressly agreed and the Commissioner has in writing approved, the statement of any sum in some other currency.

Mandatory cessions by insurers

Insurers are required to cede 20% of all outward reinsurance treaties to the Kenya Reinsurance Corporation (this requirement shall cease to apply on 31st December, 2020 or on the date the Kenya Reinsurance Corporation Limited is privatized, whichever is earlier); 10% to the Preferential Trade Area Re-insurance Company (Zep-Re) and 5% to the African Re-insurance Corporation. The reinsurers have the right to accept or decline all or part of the re-insurance cessions offered to be placed by the relevant insurer.

Limitations on cross-border transfers by customers

Sec 201 of the Insurance Act prohibits remittance or transfer of any sum of money or securities out of Kenya in excess of the amounts from time to time prescribed by the Central Bank of Kenya, in respect of or by way of premium, reserve, value, claim, management expense, profit, surplus, investment income, or other payment or sum of money which directly or indirectly arises out of insurance business, without the prior written approval of the Commissioner.

Licence validity

A licence issued under the Insurance Act is valid up to 31st December of the year of issuance. It is thereafter renewable for each subsequent year. An application for renewal of registration for a year shall be made on or before 30th September of the preceding year in the prescribed form and shall be accompanied by the prescribed fee.

Insurers, Microinsurers and Reinsurers

Licence to operate an insurance company

Insurance agent licensing

Insurance service providers

Motor assessor licence

Loss adjustors licence

Insurance Surveyors Licence

Insurance Risk Manager Licence

Insurance Investigator Licence

Insurance Claim Settling Agents Licence

Insurance brokers

Reinsurance brokers licence

Medical insurance Providers

Capital Market licences

Investment Advisor Licence

Banking

Digital Credit Provider Licence

The Central Bank of Kenya (Amendment) Act, 2021 empowered CBK to license, regulate and supervise digital credit providers (DCPs) to ensure a fair and non-discriminatory marketplace for access to credit.

Credit reference bureau licence

A Credit Reference Bureau (CRB) is an entity licensed to collect and collate credit information on individuals and businesses from different sources and provide that information upon request mainly by credit providers in the form of a credit report.

Commercial Bank Licence

Foreign banking representative office licence

The Central Bank , under sec 43 of the Banking Act, is empowered to authorize a bank or financial institution incorporated outside Kenya which does not propose to transact banking or financial business in Kenya to establish a Representative Office in Kenya

Permitted Operations

Representing the foreign institution in marketing and liaison activities in Kenya.
Promoting its services in Kenya through marketing and liaison role.
Providing its Head Office with information regarding the economic developments in the country and region.
Providing its customers with information regarding the local market.
Providing information to any local party which intends to develop its activities in countries where the foreign institution operates in.
Providing its customers with banking, financial and other relevant advice but not deposit taking.
Providing its customers with the requisite documentation as required by the foreign institution to facilitate transactions, as well as providing document authentication and validation services.

Prohibited Activities

A Representative Office operating in the country is prohibited from:

Accepting deposits in any form whatsoever;
Opening accounts of any kind for clients;
Extending loans or advances to any party whatsoever;
Performing and/or participating in any other normal banking operations, such as issuing Letters of Guarantee, opening Letters of Credit, in its own name; and
Dealing in foreign currencies and securities.

Business services

Architectural services

The Board of Registration of Architects and Quantity Surveyors (BORAQS) is the body that regulates the professions of Architecture.

Company registration

The objectives of the memorandum and articles of association of the architectural firm must be specific to architectural services. The main shareholder of the firm must also be a local i.e the other shareholder(s) must partner with local registered architects

Firm registration

Registered firms shall pay an annual subscription fee of Kshs. 10,000.00

Professional registration

Professional examination

Quantity surveyors services

The Board of Registration of Architects and Quantity Surveyors (BORAQS) is the body that regulates the professions of Quantity Surveying.

Company registration

Firm registration

Registered firms shall pay an annual subscription fee of Kshs. 10,000.00

Engineering services

Registration of graduate engineers

Registration of professional engineers

Registration of consulting engineers

Registration of accredited checkers

Temporary registration

Consulting firm registration

For foreign firms incorporated in Kenya a minimum of 51% shares should be held by Kenyan citizens who shall be consulting engineers. The rest of the engineers, if held by foreign persons, must be registered by respective bodies of their country of origin and also Engineers Board of Kenya as Temporary Engineers.

For a limited liability company the principal shareholder(s) must be consulting engineer(s) holding either individually or collectively, not less than 51% of the issued shares. Non professional engineers (either natural persons or legal persons) are allowed to hold not more that 25% of the total issued shares.

Health Sector

Health facility registration

Foreign trained doctors registration

Foreign trained doctors who possess qualifications equivalent to MBChB and BDS from the University of Nairobi are required to sit Council exams in order to determine their eligibility for registration.

Graduates from the East African Partner States (EAC) except Tanzania, who qualify from approved medical and dental schools are however exempted from Board exams under EAC Boards/Councils Reciprocal Recognition.

Foreign trained specialist registration

Graduates from the East African Partner States (EAC) who qualify from approved medical and dental schools are however exempted from Board exams under EAC Boards/Councils Reciprocal Recognition.

Construction services

Registration with National Construction Authority

Project registration (foreigners)

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