Mortgage Finance Company Licence — Fees and Charges in Kenya

A Mortgage Finance Company (MFC) is a specialised financial institution licensed by the Central Bank of Kenya (CBK) to accept deposits and extend mortgage loans for the purchase, construction, or improvement of immovable property. MFCs operate under the Banking Act, Cap. 488, and are subject to similar prudential requirements as commercial banks, but with a focus specifically on property finance.

Licence Fees

Licence Component	Annual Fee (KES)
Head Office	400,000
Branch (Municipality)	150,000 per branch
Branch (Town Council Area)	100,000 per branch
Branch (Urban Council Area)	30,000 per branch
Third-Party Agent	1,000 per agent

The fee structure for mortgage finance companies mirrors that of commercial banks under the Fourth Schedule of the Banking Act, last revised in 1990. The CBK's 2025 consultative process on bank licence fee revision will also apply to MFCs.

Minimum Capital Requirements

Requirement	Amount (KES)
Minimum core capital	1,000,000,000 (1 billion) — subject to revision under Business Laws Amendment Act, 2024

The Business Laws (Amendment) Act, 2024 provisions on core capital escalation apply to MFCs on the same phased schedule as commercial banks, targeting KES 10 billion by December 2029 for all deposit-taking institutions.

Key Application Requirements

Applicants must submit a feasibility study, proof of paid-up capital, certified memorandum and articles of association, fit and proper declarations for all proposed directors and officers, proposed mortgage product terms and conditions, three-year financial projections, and evidence of proposed reinsurance arrangements covering the MFC's insurance obligations. Processing takes approximately 60 days per application phase. Regulated by the Central Bank of Kenya (CBK) under the Banking Act, Cap. 488, and the Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019.

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