Guideline on the Appointment and Operations of Third Party Agents by Deposit Taking Microfinance Institutions (DTMS)

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This Guideline prescribes the manner in which third parties may be contracted by an institution to provide deposit taking microfinance business on behalf of the institution; to enable Deposit Taking Microfinance institutions (DTMs) to carry out deposit taking microfinance business through agents as a delivery channel in a cost effective manner; to outline activities which can be carried out by an agent and to provide a framework for offering agent deposit taking microfinance services; to provide a set of minimum standards of data and network security, customer protection and risk management to be adhered to by DTMs and agents in the conduct of deposit taking microfinance business.

Before seeking the Central Bank’s approval, an institution shall, make sure it has an existing well established commercial activity in operation for at least eighteen months, not classified as a deficient, doubtful or non-performing borrower, and that possesses appropriate physical infrastructure and human resources to be able to provide the services. Prior to engaging as an agent, the institution shall assess the moral, business and professional suitability of the sole proprietor or partners of the entity proposed to be appointed as agent. Part IV details the permissible and prohibited activities of agents. 

Document Details

Document Type: 
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Year of Document: 
2012
Date of Document: 
Monday, January 2, 2012
Document Authors: 
Central Bank of Kenya
Language (This Document): 
English

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