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Regulatory Environment (Continued)
and KShs. 200,000/= in the case of natural persons
including officers of financial institutions deemed liable
for causing the breach of legal provisions. A further
maximum penalty of a maximum of KShs. 20,000/=
may be levied for each day or part of a day during which
non-compliance continues. The Bank already has a
legal compliance function which will ensure continued
compliance with regulatory requirements.
Capital Markets (Amendment) Act, 2013:
Following amendments to the Capital Markets Act, the
requirement for annual renewal of licenses issued by the
Capital Markets Authority has been removed. Licenses
issued by the Capital Markets Authority will accordingly
remain valid until they are revoked or suspended by the
Authority. Consequently, the licenses issued to KCB in
respect of custodial services and to KCB Capital Limited
for investment banking will not require annual renewal.
Dematerialization of Securities:
On 1st November, 2013, KCB shares were dematerialized
in accordance with the Central Depositories Act, 2000
thereby converting paper certificates into an electronic
format. Share certificates have therefore ceased to be
prima facie evidence of ownership and KCB is no longer
issuing certificates in respect of dematerialized shares.
A shareholder who has not immobilized their shares will
still continue to receive all bonus shares or dividends or
any other corporate action and entitlement that are due
to them. However, we encourage Shareholders who
have not immobilized their shares to date to deliver the
required documents to thier stockbroker, investment
bank or custodian bank, and they shall be assisted
with the verification process by the registrar of the
company for their shares to move from a non-trading
CDS account to a trading CDS account.
The migration from paper/physical share certificates to
electronic accounts will shorten the settlement period,
and enhance the safety and security of dealing with
shares listed on the securities exchange.
Tanzania
A key development in the year for Tanzania was the
enactment of the Finance Act, 2013 (Act No. 4 of
2013) on 1st July, 2013 by the Government of the
United Republic of Tanzania which made amendments
to sections 124 and 125 of the Excise (Management
and Tariff) Act, Chapter 147 by introducing an excise
duty on money transfer through a bank, a financial
institution or a telecommunication company.
Uganda
In Uganda, the Government enacted two key
legislations namely The Companies Act, 2012 and
Anti-Money Laundering Act, 2013.
The Companies Act, 2012 came into force on 1st
July, 2013 and repealed the Companies Act, Chapter
110 of the Laws of Uganda (revised edition 2000).
The new issues introduced by the Act included single
member Company, details of change of status of
company, quasi-judicial powers of registrars, change
of age (qualification) of company directors among
others. Notably the Act amply provides for corporate
governance.
The Anti-Money Laundering Act, 2013 came into
force on 1st November, 2013 and provides for the
prohibition and prevention of money laundering, the
establishment of a Financial Intelligence Authority
and Financial Intelligence Authority Board in order
to combat money laundering activities. The Act also
imposes duties on Institutions and other persons,
businesses and professions who might be used
for money laundering purposes. The two Acts are a
welcomed attempt to catch up with global trends in the
law governing corporate entities and the prevention of
money laundering.
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K C B 2 0 1 3 A n n u a l R e p o r t a n d F i n a n c i a l S t a t e m e n t s