MasiboLaw

By Meshack Masibo

The ability to send and receive money is the cornerstone of modern society. We send money across the world to the people we love, and when we get opportunities to go abroad, we send money back home to support our loved ones and to invest in projects. This is only possible because of platforms that allow us to send money within and across borders. Such platforms are called Money Remittance Providers (MRP).

A Money Remittance Provider is a non-bank institution that accepts instructions from customers to transfer money or property to a recipient within or without a country’s borders. Globally, popular MRPs include World Remit and MoneyGram. Locally, we also have companies like TerraPay and the popular Mpesa service that offer money remittance services. You can find a full list of licenced MRPs in Kenya on the Central Bank of Kenya website. 

If you are interested in getting into the space, here is the procedure;

1. Contact the Central Bank of Kenya at an early stage for a preliminary meeting to discuss licensing requirements and related issues. This is not mandatory if you are confident that you have understood the licensing requirements.
2. Propose and reserve at least three business names with the Registrar of Companies that have the words “money remittance” or “money transfer” as a brand name.
3. Submit the proposed names to the Central Bank in order of priority and once approved you can proceed to register the company as a private limited company
4. Complete and Submit the Application Form to CBK accompanied by all the relevant supporting documents. 
5. Secure evidence of the minimum core capital required which is 20 million Kenyan Shillings by depositing the same in a bank account held by the registered company. You will need to attach a copy of the bank statement to the application.  
6. Prepare and submit a comprehensive feasibility study and business plan that should also include 3 years of projected Financial Statements and Analysis as well as a conclusive business continuity plan. 
7. Additionally, you will need a host of documentation about your corporate governance policies, anti money laundering policies, data protection policies, consumer protection polices and risk management polcies to support your application. 
8. If you are a foreign company intending to set up a local subsidiary you will also need to offer a historical background of your company, a copy of the board resolution authorizing the entity to invest in Kenya and the list of all countries that you operate in. 
9. If the Central Bank is satisfied that you have complied with the requirements it will issue you with a letter of intent to authorize you.
10. At this point, you will have gotten the license in principle and you will now pay the 100,000 KES authorization fees to the CBK and receive your Licence.  

The writer is a lawyer who specializes in offering legal services to people in technology. You can reach him through info@masibolaw.co.ke