A Microfinance Bill has been published on 5 November 2018.
It is set to regulate licensing and registration of deposit and non-deposit taking microfinance business in 4 tiers:
- Tier 1 – deposit taking microfinance service providers, such as banks and microfinance banks.
- Tier 2 – non-deposit taking microfinance service providers, such as credit companies and financial organisations.
- Tier 3 – SACCOS under the Cooperative Societies Act.
- Tier 4 – community financial groups, individual money lenders and community based organisations.
The Bill was enacted 16 November 2018.
Please contact us if you have any comments or questions.