Beneficial Ownership Notice of Compliance

We bring your attention to Section 93A of the Companies Act, 2015 that requires a company to keep a register of its beneficial owners. The company is further required to lodge the register with the Registrar of Companies within 30 days of its preparation. The Business Registration Service which is mandated to oversee operations of the Companies Registry and the implementation of the Companies Act, 2015 recently issued a notice as a reminder to companies to ensure they are complaint by ensuring they have updated and duly filed their beneficial ownership information. Kindly note that failure to comply with the requirement to file and update beneficial ownership information is an offence under the Companies Act, 2015.

A “beneficial owner” is any person who ultimately owns or controls a legal body or entity, such as a company, on whose behalf a transaction or activity is being carried out. Global concern about the concealing of significant dubious financial activities made possible by enabling such beneficiaries to stay anonymous is growing, and several countries are calling for more transparency regarding beneficial ownership. Making the declaration of beneficial ownership as easy and affordable as possible is what Kenya has used to encourage compliance and help accomplish the ultimate goal of greater corporate responsibility when the government take steps to improve financial transparency.