The Business Laws (Amendment) Bill, 2024 (the Bill) which is currently undergoing public participation is seeking to introduce legal provisions to increase the minimum core capital requirement for Kenyan banks and mortgage finance companies from KES 250 million to KES 10 billion within the next three years. The rationale being that banks with sufficient capital […]
Introduction On 14th October, 2024, the Central Bank of Kenya (the CBK) issued a press release confirming that in accordance with section 43 of the Banking Act (Cap 488, Laws of Kenya), it was granting authority to JPMorgan Chase Bank N.A., a financial conglomerate domiciled in the USA, to establish a Representative Office in Kenya. […]
Background On 17th October, 2024, the Business Registration Service (BRS), a state entity established under the BRS Act of 2015 issued a notice requiring companies to prepare and maintain a register of Beneficial owners by 30th November, 2024. This is in line with the Companies Act, 2015 and Companies (Beneficial Ownership Information) Regulations, 2020. The […]
While recognizing the Railway Bill’s potentially pivotal role in transforming the railway transport sector, we at SMC feel that there are certain key issues in the Bill that require reconsideration. 1. Lack of a clear Policy Direction on Private Sector Involvement. The Updated Integrated National Transport Policy of 2024 has references to attracting private sector […]
The Kenyan transport sector is currently undergoing visible rapid transformation driven by significant socio-economic and technological advancements. Within the Rail sub-sector, the SGR has become pivotal in freight and passenger movement and a vital link in trade and commerce. On this backdrop, the Government seeks, in accordance with the Updated Integrated National Transport Policy of […]
Introduction While the economic downturn globally has seen a rise in loan defaults, there has been a rise in cases where individuals claim they have not defaulted on loan payments but are nonetheless adversely listed with credit reference bureaus (CRBs). Banks, microfinance banks and other credit providers have a legal obligation to forward to the […]
On 14th May, 2024, more than 10 years after its passing, the Public Benefits Organisation Act, 2013 has been brought into effect. This will bring much needed change to the non-profit landscape in Kenya. Generally, the type of non-profit entity that a person chooses depends on what activity or function you want the non-profit to […]
Every so often a case like the recent Erdemann case pops up and Kenyans are aghast. How can a court give a bank the right to auction off properties that have been seemingly sold off to homeowners by a developer? The situation is regrettable but the cause of this is simple enough: buyers on average […]
While Nairobi Governor Sakaja’s March 2024 declarations that developers would be allowed to build over 25 floors drew mixed reactions, the fact is that since Otis invented the lift, vertical cities have been thought of as a foregone conclusion. According to the Council on Tall Buildings and Human Habitat which provides data on high-rise buildings, […]
A share buyback is a purchase by a company of its own shares from a shareholder. One of the main reasons for a company to purchase its own shares is to return surplus cash to shareholders. An obvious advantage of a company implementing a share buyback is that it pays the shareholders to buy back […]