The Finance Act, 2018 amended the Central Bank of Kenya Act (CBK Act) to provide the legal framework for the licensing and regulation of the mortgage refinance business and to bring the operations of Mortgage Refinance Companies (MRCs) within the regulatory and supervisory purview of the Central Bank of Kenya (CBK). MRCs will refinance Primary Mortgage Lenders (PMLs) such as commercial banks, microfinance banks and Saccos using funds from the capital markets so as to provide affordable mortgages to eligible members of the public. In this regard, and pursuant to Section 57(1) of CBK Act, the CBK has formulated the draft Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019. The Regulations are intended to provide a clear framework for licensing, capital adequacy, liquidity management, corporate governance, risk management, and reporting requirements of MRCs. CBK invites comments on the draft Regulations through the email address fin@centralbank.go.ke by Thursday, February 28, 2019.
Download the CBK (MRC) Regulations, 2019 here…