27 December 2011
Central Bank of Kenya will regulate agents that take deposits on behalf of the Deposit Taking Microfinance institutions.
The guidelines, which will be effective from January 2nd 2012.
They will curb financial impropriety by the agents, and improve participation of DTMs in deepening and promoting financial services and inclusion for the country’s un-banked and under-banked population.
“The new guidelines are meant to maintain a stable and efficient deposit taking microfinance system in the country by reducing the risks and costs involved in the system,” noted the CBK statement, issued last week.
Customer complaints
DTMs will be required to submit to the regulator data and other information touching on the agent’s nature, incidents of fraud, theft or robbery, customer complaints and the remedial measures taken to address customer complaints.
The regulator will have the powers to get any information from any agent at any time as it may deem it necessary.
Besides, CBK can carry out any impromptu or scheduled inspection of the books, systems and premises of the agent.
A DTM is a microfinance that offers savings and wealth creation products besides giving credit at a lower interest rate as compared to commercial banks.
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