How to Register a Money Remittance Company in Kenya

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.