Microfinance Bank Licence — Fees and Charges in Kenya

A Microfinance Bank (MFB), also known as a Deposit-Taking Microfinance Institution (DTM), is an institution licensed by the Central Bank of Kenya (CBK) under the Microfinance Act, 2006, to accept deposits from the public and extend credit, principally to low-income individuals, micro-enterprises, and small businesses.

Licence Fees

Fee Item	Amount (KES)
Application / licensing fee	Payable by banker's cheque to CBK (amount per CBK schedule)
Annual licence fee	Per CBK schedule for DTMs

Exact fee amounts are specified in the CBK's DTM licensing procedures document and the Microfinance (Deposit-Taking Microfinance Institutions) Regulations. Applicants should confirm the current schedule directly with the CBK's Bank Supervision Department.

Minimum Core Capital Requirements

DTM Category	Minimum Core Capital (KES)
Community MFB (defined geographical area)	20,000,000
Nationwide MFB	60,000,000

These thresholds are prescribed under the Microfinance Act, 2006, and its associated regulations.

Key Application Requirements

Requirement	Details
Feasibility study	Required, covering first three years
Paid-up capital evidence	Confirmed by external auditors
Directors and officers	Must pass CBK fit and proper test
Business plan	Detailed operational and financial plan
Deposit mobilisation strategy	Required
IT systems plan	Required; CBK may conduct on-site systems review
CBK inspection	On-site inspection before licence issuance

The licensing process for a Microfinance Bank typically takes between 6 and 18 months from application to licence issuance, reflecting the depth of CBK due diligence on governance, capital, and operational readiness. Regulated by the Central Bank of Kenya (CBK) under the Microfinance Act, 2006, Laws of Kenya.

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