This Bill was gazetted pm 21st December 2018. It will amend the Microfinance Act [Chapter 24:30] to achieve two main objectives:
A. First, the Bill will reduce the variety of institutions that can carry on microfinance business under the Act. At present the Act envisages four different types of institution:
1. Corporate microfinanciers, which are partnerships or companies engaged in money-lending or providing credit to or accepting deposits from small-scale businesses and members of lower-income groups
2. Credit-only microfinanciers, which are organisations that provide loans and credit to small-scale borrowers.
3. Deposit-taking microfinanciers, which are organisations accepting deposits from small-scale businesses and members of lower-income groups.
4. Money-lenders, who provide loans and credit but who are not microfinanciers.
To reduce confusion and overlapping, the Bill will amend the Act to recognise only two institutions: credit-only microfinance institutions (namely companies that provide loans and credit to small-scale borrowers); and deposit-taking microfinance institutions, namely companies that accept deposits from small-scale businesses and members of lower-income groups).
B. The second main object of the Bill is to extend and strengthen the supervision that can be exercised over microfinance institutions.