KENYA Law and Practice Contributed by: Sammy Ndolo, Njeri Wagacha, Brian Muchiri and Sara Ndei, Cliffe Dekker Hofmeyr incorporating Kieti Law LLP
Payment Services PSPs are required to disclose the charges for all services, and to publish such information and display it prominently at all points of service. They are also required to notify customers and the CBK of any material changes in the rates, terms and charges at which they offer their ser - vices, and must do so at least seven days before the changes take effect. Investment Services Service providers licensed by the CMA (market intermediaries) are required to make customers aware of their fees for the provision of services. They are also restricted from taking any fees or charges from any client’s funds or from liquidat - ing a client’s securities for the purpose of recov - ering its fees or charges, unless doing so is in accordance with the client agreement or in the manner prescribed by the CMA. Market intermediaries include the following enti - ties: • stockbrokers; • derivatives brokers; • REIT managers;
charge customers and what disclosures need to be made to the customers. Digital Banking A bank that provides any credit facilities to a bor - rower is restricted from imposing default charg - es or prepayment penalties. In addition, for non- performing loans, any interest on the overdue amount stops running the moment the accrued interest equals the principal amount of the loan. Banks are required to disclose to customers all charges, fees and penalties that would arise from the use of a product or the rendering of a service prior to a customer choosing a product or service. They are also required to ensure that a consumer is notified within a reasonable time (typically, 30 days), as the circumstances of the case may require, and before implementing any changes to fees or charges imposed on prod - ucts or services. Digital Credit NDCPs are required to disclose to customers all payments that they would be required to make to the NDCP in consideration of receiv - ing a loan from the NDCP, including all interest, fees, expenses and costs associated with the provision of the loan. In addition, NDCPs are restricted from increasing charges or credit lim - its without providing at least 20 days prior notice to customers. NDCPs are also required to submit their pricing models to the CBK for approval; once approved, the NDCPs are restricted from altering their pric - ing models or parameters without the prior writ - ten approval of the CBK. They are also subject to similar restrictions to banks on default charges, prepayment and interest on non-performing loans.
• trustees; • dealers; • investment advisers; • fund managers; • investment banks; • central depositories; • authorised securities dealers; • authorised depositories; • online forex brokers; • commodity dealers; and • commodity brokers.
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