Banker customer relationship kenya law resource center. Overview of the banking industry in kenya lexology. Mbanking definition of mbanking by the free dictionary. The outcomes of an enabling legal and regulatory framework, investment by dynamic private sector. Ellingers modern banking law sets banking law against the background of general legal doctrines and banking regulation, discussing its operation in the context of its wider economic function. Safaricom, an example of telecomled mobile banking and equity. Statutory definitions of a bank admin june 04, 20 section 2 of the banking act cap 488 laws of kenya defines a bank to mean a company which carries on or proposes to carry on. A bank is a financial institution that accepts deposits from the public and creates demand deposit. A compendium of laws on banking in uganda edited by alex buri, joseph kyazze. The banking amendment bill speaks to the general welfare of the citizenry.
To protect banking confidentiality credit allocationto direct credit to favoured. Human beings are, more often than not, averse to change. Kenya banking law also protects potential consumers by requiring banks not to discriminate. It provides for the process of licensing banking institutions and circumstances under which. To protect banking confidentiality credit allocationto direct credit to favoured sectors to provide the best customer service in this competitive age. Mpesa is a unique innovation that is rapidly evolving laws must be flexible in order to accommodate new changes and not confine development of new products. An act of parliament to amend and consolidate the law regulating the business of banking in kenya and for connected purposes. Avoid misuse of banksto reduce the risk of banks being used for criminal purposes, e. For those searching for banking and finance project topics and materials pdf, ms word in nigeria, kenya and ghana. The word bank, or words deriving from the word bank must not be used in the title of a trading company, or a legal entity, which does not meet the conditions.
The banking act cap 488 of the laws of kenya lays a tight procedure for the regulation of the licensing and operations of banks in this country. Kenya law handsover 620 grey books to the judiciary. The payment history of an account over a specific period of time, including the number. Banking law and practice question paper banking law and practice. Bankercustomer relationship the banking act defines a bank 2 as a company which carries on or proposes to carry on banking business in kenya.
Visit the internet banking faq for more information. Kenyas financial transformation in the 21st century tralac. In other words, safaricom is an example of telecomled mobile banking. Mpesa and the evolution of financial inclusion in kenya.
Kenya law resource center is published as an information resource only. Law of banking, negotiable instruments and insurance prepared by fasil alemayehu and merhatbeb teklemedhn 3 this teaching material, which is prepared and presented in the form of a compilation, is. Banking in kenyastateexpanded to show the template expanded, i. Government of the republic of kenya, first medium term plan 20082012, kenya vision. Longet terer handed over a total of 620 grey books to the chief registrar. Legal aspects of financial services regulation and the. Banking in kenyastateautocollapse shows the template collapsed to the title. Electronic banking using a telephone connection phone banking and mobile banking. My proposed law to regulate interest rates is unique. The central bank of kenya cbk has been an integral part of this success, given kenyas aspirations. African nations such as kenya would rank highly if sms mobile banking were. Banking courses can cover such topics as account management, finance management, corporate cash management, international banking, and personal money management and will also provide a variety. View essay banking law from business m 301 at egerton university. Banking law and practice is intended as a concise but comprehensive guide for practitioners and students alike.
From force majeure to employment issues follow the latest thinking from the worlds leading business law firms as the virus continues to spread. Ensure that your browser is enabled with javascript and cookies. Mobile banking is a service provided by a bank or other financial institution that allows its. This means that a bank cannot refuse to set up an account on the basis of someones age, race, gender and other factors. A microfinance institution mfi is a form of financial development that primarily provides financial services to the low income groups and micro and small enterprises mses. For example under the banking act we have seen an attempt to define who a bank is but not who a customer is. The enabling environment for mobile banking in africa.
Introduction according to the banking act cap 488 laws of kenya bank means a company which carries on, or proposes to carry on. Legislation and guidelines cbk central bank of kenya. Corporate finance personal finance public finance financial law financial regulation list of banks category. No person other than a bank shall have in its business name andor use in its activities the word.
The banking act chapter 488 of the laws of kenya deals with the business of banking and related matters. Make sure that you are viewing the site in secured mode. The banking industry in kenya is governed by the companies act, the banking act, the central bank of kenya act and the various prudential guidelines issued by the central bank of kenya cbk. Business name of a bank and unauthorised use of the word bank article 6 a bank is required to have the word bank as part of its business name. None of the material on this site is expressly or impliedly meant to provide legal advice to you. Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile device such as a smartphone or tablet. With development, the monetary system was introduced. This development made the banking system imperative as it was necessary to store the money as it could easily be. Bank, to use the word bank or any of its derivatives or any. An act of parliament to amend and consolidate the law regulating the business of banking in kenya and for connected purposes part i preliminary 1.
Goldfaceirokalibe malthouse press, nigeria law of contract in uganda by david j. Another example of the statute which appears to recognize. The mobile banking revolution in kenya ash center harvard. General power of attorney form free download on upcounsel. Government of the republic of kenya, kenya vision 2030, a globally competitive and prosperous kenya, 2007. Seths banking law, law publishers india p limited k. The relationship between a bank and a customer under kenya law embraces mutual duties and obligations and it is therefore necessary to know what in law is a customer. Law of banking, negotiable instruments and insurance. The only factor to be taken into account is the potential customers financial position at the time of application.
Notes on regulation of branchless banking in kenya currently have the necessary tools including specific regulations to supervise the payment system. Lending activities can be performed either directly or indirectly through capital markets. Other titles in the law, justice, and development series the transit regime for landlocked states. Part ii refers to the formation of banks, giving guidelines for the settling. The contract governing your openend credit account, it provides information on changes that may occur to the account. This could be one of the reason why the common law definition of banking remains as to who is a customer and who is not a customer. International law and development perspectives 2006 by kishor uprety the human right to water.
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