Friday, February 9, 2024 - Kenyan-based companies will be required by law to keep a record of all individuals who directly or indirectly own or control a company lest they are fined Ksh2,000 and an extra Ksh100 every day throughout the default period
This is according to the Anti-Money
Laundering and Combating of Terrorism Financing Laws (Amendment) Act,
2023.
The Act was signed into law by
President William Ruto on September 1, 2023, binding every business to
declare all its shareholders.
“Every company shall keep
records of its beneficial owner’s information for at least ten years from the
date which a person ceases to be a beneficial owner,” the Act reads in
part.
The Act further dictates that
apart from publicly listed companies, businesses must lodge with the Registrar
a copy of any amendment to its register of beneficial owners within fourteen
days of making the amendment
For publicly listed companies,
such amendments should be communicated to the Registrar of Companies within 30
days of enacting the changes.
“If a company fails to comply
with the requirements, the company, and each officer of the company in default
is liable to pay to the Registrar, an administrative penalty of Ksh2,0000,” the
Act warns.
“If the company continues to
fail to comply the company, and each officer of the company in default, is
liable to pay to the Registrar a further administrative penalty of Ksh100 for
each day of default.”
Officers of the
company must also keep records for 7 years after dissolution - removing
the name of the business from the official register.
Additionally, the Act dictates
how the staffing of small and medium businesses should be conducted.
As such, all companies with
paid-up share capital of less than Ksh5 million must have a secretary, a
local director, or a contact person who is a permanent resident in Kenya.
The Act came into force on
September 15, 2023.
The Kenyan DAILY POST
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