Microfinance Institution Licence — Fees and Charges in Kenya

A non-deposit-taking microfinance institution — also referred to as a Non-Deposit Taking Credit Provider (NDTCP) — provides credit to borrowers but is not permitted to accept public deposits. Until the Business Laws (Amendment) Act, 2024, such entities operated largely outside formal CBK oversight. That legislation extended CBK's regulatory authority to all non-deposit-taking credit businesses, with the draft CBK (Non-Deposit Taking Credit Providers) Regulations, 2025, establishing the new framework.

Fees and Charges

Fee Type	Amount (KES)
Application fee (licence or registration)	100,000 (non-refundable)
Annual fee — Licensed entity (capital/loan book > KES 20M)	500,000
Annual fee — Registered entity (capital/loan book ≤ KES 20M)	250,000

These proposed fees represent a significant increase from the previous Digital Credit Provider (DCP) regime, where the application fee was KES 5,000 and the annual fee was substantially lower.

Licensing vs Registration Threshold

Status	Condition
Licensed (full CBK licence required)	Capital, borrowings, or loan book exceeds KES 20 million
Registered (lighter oversight)	Capital, borrowings, and loan book all below KES 20 million

Entities already holding a DCP licence under the 2022 Regulations are required to transition into the new NDTCP framework. The draft regulations also require that registered NDTCPs convert to licensed status if their balance sheet grows past the KES 20 million threshold.

Key Application Requirements

Applications must include certified incorporation documents, fit and proper forms for all directors and significant shareholders, a detailed business plan, AML/CFT and data protection policies, a credit policy, and evidence of sources of initial capital. Regulated by the Central Bank of Kenya (CBK) under the Central Bank of Kenya Act, Cap. 491, as amended by the Business Laws (Amendment) Act, 2024.

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