This guide outlines the step-by-step process of registering a money remittance company in Kenya, regulated by the Central Bank of Kenya (CBK). Money Remittance Providers (MRPs) play a crucial role in facilitating international money transfers.
Steps to Register a Money Remittance Company
1. Name Approval
- Engage with CBK early for a preliminary meeting to discuss licensing requirements.
- Propose and reserve at least three business names containing “money remittance” or “money transfer.”
- Submit the proposed names to CBK in order of priority for approval before incorporating the company.
2. Application for Licence
a) Submit an Application Form (CBK/MRB/1)
Accompany the form with the following documents:
- Certified copy of the Certificate of Incorporation.
- Tax PIN certificate.
- Memorandum and Articles of Association showing a minimum paid-up capital of Ksh 10 million (to increase to Ksh 20 million within a year).
- Notification of registered business location (including branches or outlets).
- Pay a non-refundable application fee of Ksh 20,000 via bankers’ cheque or RTGS.
b) Evidence of Minimum Core Capital
- Provide proof of Ksh 10 million in core capital, with the ability to raise it to Ksh 20 million within a year.
- The funds must be in a licensed bank or microfinance institution, or in Government of Kenya Treasury Bills or Bonds.
- Submit a breakdown of shareholders’ contributions, including details of significant shareholders (owning at least 10%).
c) Feasibility Study and Business Plan
Include the following:
- Executive summary and background.
- Governance structure and ownership details.
- Financial and operational performance summary.
- Scope of business activities and products.
- Three-year projected financial statements.
- Business continuity plan.
d) Fit and Proper Forms (FORM/CBK/MRB/2)
Submit these for significant shareholders and directors, including:
- Curriculum Vitae and academic certificates.
- Personal financial details and proof of funds.
- Certified ID and PIN certificates.
- Credit reports from a licensed bureau.
- For corporate entities, provide incorporation documents, audited financials, and source of funds.
e) Additional Requirements for Specific Cases
- Forex Bureaus and Associated Entities: Provide resolutions for name changes, audited financials, and due diligence reports.
- Foreign Companies: Submit board resolutions, a historical background, and compliance declarations.
3. Letter of Intent
Upon satisfying all requirements:
- CBK issues a Letter of Intent granting approval in principle.
- Pay a licence fee of Ksh 100,000.
- Secure a surety bond, letter of credit, or insurance bond worth Ksh 5 million or 1% of projected business volume for the first year.
- Set up premises and seek CBK approval for operational readiness.
4. Issuance of Licence
If all requirements are met, CBK issues a licence authorizing the company to begin money remittance operations.
Preparation and Operational Requirements
- Governance: Establish clear board and management structures.
- Management Information Systems (MIS): Ensure robust systems for operations and risk management.
- Operations Manuals: Include procedures for accounting, internal audits, Know Your Customer (KYC), and risk management.
Central Bank of Kenya Contacts
- Location: Haile Selassie Avenue, Nairobi
- Phone: +254 20 2861000 / +254 709 081 000 / +254 709 083 000
- Email: [email protected]
By following this structured approach, you can successfully register and operate a money remittance company in Kenya.
