A certificate of registration of a society issued by the Registrar shall, upon its mere production, in the absence of proof of fraud, be conclusive evidence that all the requirements of this Act in respect of registration and of matters precedent and incidental thereto have been complied with and that the society is duly registered.

Any other document relating to a building society and purporting to be signed by the Registrar shall, in the absence of evidence to the contrary, be admissible as evidence in a court without proof of the signature.

Any ten or more persons may form a building society by subscribing their names and addresses to rules agreed by them for the government of the society and by obtaining registration under this Act.

Subject to this section, persons intending to establish a building society may apply to the Registrar for registration in the prescribed form, accompanied by two copies of the rules.

If the Registrar is satisfied that the application and the rules are in compliance with the provisions of this Act and any regulations made thereunder, he shall enter the prescribed particulars relating thereto in the register.

The Registrar shall issue a certificate of registration in the prescribed form to every building society registered under this section.

No building society shall be registered by a name which is identical with that of another building society previously incorporated or registered, or by a name which so nearly resembles it as to be likely to deceive, unless that other society is in course of being terminated or dissolved and consents to the registration.

The name of every building society shall end with the words "Building Society".

A building society shall not use any name or title other than its registered name.

The Registrar may, unless otherwise ordered by the Cabinet Secretary, refuse to register a building society by a name which in his opinion is calculated to mislead the public or to cause offence to any person or class of persons.

Every building society shall have a common seal which shall bear the registered name of the society.

A building society which is by its rules permitted to carry on its business outside Kenya may, if authorized by its rules, have for use in any place not situated in Kenya an official seal, which shall be a facsimile of the common seal of the society with the addition on its face of the name of the place where it is to be used.

A deed or other document to which an official seal of a foreign building society registered under section 75 is duly affixed shall bind the society as if it had been sealed with the common seal of the society.

Notwithstanding any other provision of this Act, no building society shall carry on business in Kenya as a building society unless it holds an annual licence to do so in accordance with section 12B.

A building society which contravenes subsection (1) shall be guilty of an offence and liable to a fine not exceeding fifty thousand shillings and in addition shall be liable to pay any annual licence fee which should have been paid.

A person who is guilty of an offence under subsection (3) shall be liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year or to both.

The Cabinet Secretary for the time being responsible for finance may, subject to such conditions as he may consider necessary, issue an annual licence to a building society in such form as may be prescribed.

In considering an application for an annual licence the Cabinet Secretary for the time being responsible for finance may require to be satisfied as to the financial condition and history of the building society, the character of its management including the integrity and qualifications of its directors, the adequacy of its capital and purposes of continued existence and that the public interest will be served by the licensing of the building society.

For the purposes of this section, the criteria for assessing the professional or moral suitability of persons proposed to manage or control a building society shall be as prescribed in the Fourth Schedule.

An annual licence issued under subsection (2) shall remain in force until the 31st December in the year in which it is issued but may be renewed from year to year on payment of a further annual licence fee.

The Cabinet Secretary for the time being responsible for finance may at any time endorse any conditions on an annual licence or suspend or vary or revoke the licence if in his opinion it is expedient to do so.

A building society which fails to renew its annual licence within the first three months of its expiry shall pay late penalty equal to fifty per cent of the fee plus interest on the total sum at the rate of three per cent per month or part thereof.

If a building society changes its name in accordance with section 46, when the Registrar registers one copy of the resolution under section 46(3) he shall endorse any annual licence in force with the new name of the society.

Where two or more building societies amalgamate under Part VIII, none of those societies are entitled to any refund of annual licence fees in respect of any unexpired periods of their annual licences, but the Cabinet Secretary for the time being responsible for finance shall issue to the new society an annual licence for the longest of those unexpired periods.

Every building society shall have a board of directors consisting of three or more persons, of whom the secretary may, but need not, be one.

The duties of every director of a building society shall include the duty of satisfying himself that the arrangements made for assessing the adequacy of any security to be taken in respect of an advance to be made by the society are such as may be reasonably expected to ensure that the adequacy of a security to be so taken will be assessed by a competent and prudent person experienced in the matters relevant to the determination of the value of that security:

Provided that nothing in this subsection shall preclude a director of a building society from approving those arrangements by reason only that the arrangements provide for the assessment of the adequacy of the security by himself or any other director of the society.

Every building society shall have a secretary.

Anything required or authorized to be done by or to the secretary may, if the office is vacant or there is for any other reason no secretary capable of acting, be done by or to any assistant or deputy secretary, or, if there is no assistant or deputy secretary capable of acting, by or to an officer of the society authorized generally or specially in that behalf by the board of directors.

No director, secretary, surveyor, advocate or other officer of a building society shall, in addition to the remuneration prescribed or authorized by the rules of the society, receive from any other person any gift, bonus, commission or benefit for or in connection with any transaction whatsoever relating to the business of the society.

A person who pays or accepts any such gift, bonus, commission or benefit shall be guilty of an offence and liable to a fine not exceeding ten thousand shillings and in default of payment to imprisonment for a term not exceeding six months, and the person accepting the gift, bonus, commission or benefit shall, as and when instructed by the Court by whom he is convicted, pay over to the society the amount or value of the gift, bonus, commission or benefit, and in default of payment shall be liable to imprisonment for a term not exceeding six months.

Any person who continues to act as an officer of a building society after he has been disqualified by virtue of this section shall be guilty of an offence and liable to a fine not exceeding fifty thousand shillings or to imprisonment for a term not exceeding two years or to both.

For the purposes of this section, a person who is employed, otherwise than in pursuance of a contract of service, in connexion with the disposition of land by a person who has a financial interest in the disposition shall be treated, so far as relates to the disposition of that land, as a servant of the person having the interest, unless he carries on, independently of that person, the business of an advocate, estate agent, surveyor or auctioneer.

A person who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding six months or to both.

If, in proceedings for negligence, default, breach of duty or breach of trust against a person to whom this section applies, it appears to the court hearing the case that that person is or may be liable in respect of the negligence, default, breach of duty or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused for the negligence, default, breach of duty or breach of trust, the court may relieve him either wholly or partly from his liability on such terms as the court may think fit.

Where a person to whom this section applies has reason to apprehend that a claim will or might be made against him in respect of negligence, default, breach of duty or breach or trust, he may apply to the High Court for relief, and the High Court on any such application shall have the same power to relieve him as under this section it would have had if it had been a court before which proceedings against that person for negligence, default, breach of duty or breach of trust had been brought.

The persons to whom this section applies are the directors, the members and officers of a building society, and any person employed by a building society as an auditor, whether he is or is not an officer of the society.

Subject to this Act, a building society may receive deposits or loans at interest from its members or from other persons to be applied to the purposes of the society.

A building society shall, at all times maintain a ratio of not less than eight per cent between its core capital and its total deposit liabilities.

The amount of deposits or loans from any one person shall be within any limits prescribed by the rules of the society.

Money deposited with a building society as security for an advance made by the building society to a member, or as security for a guarantee given in respect of such an advance, shall be deemed to be money borrowed by the society.

A building society shall not accept a deposit or loan except on the terms that not less than one month’s notice may be required by the society before repayment or withdrawal.

Every deposit book or acknowledgment or security of any kind given for a deposit or loan by a building society shall have printed or written therein or thereon the whole of this section.

If a building society contravenes this section, the society and every director, secretary or other officer of the society who is a party to the contravention shall be guilty of an offence and liable to a fine not exceeding two thousand shillings.

If a building society receives loans or deposits in excess of the limits prescribed by this Act, the directors of the society shall be personally liable for the amount so received in excess.

Notwithstanding subsection (1) a building society may at a general meeting resolve to acquire and hold land and may acquire and hold land for the purposes of developing residential houses for its members in accordance with the rules of the building society.

A building society may let any part of its business premises which is not required for the immediate use of the society.

A building society may, subject to this section, make advances to its members out of its funds upon the security of land.

No building society shall advance money on the security of land which is subject to a prior mortgage, unless the prior mortgage is in favour of the society making the advance; and if any advance is made in contravention of this subsection, the directors of the society who authorized the advance shall be jointly and severally liable for any loss on the advance occasioned to the society.

In determining the amount of any advance made by a building society to one of its members upon the security of land, the society shall not take into account the value of any additional security taken by the society for the advance, other than a security of a class specified in the Second Schedule.

Where a charge upon a policy of life assurance is taken as additional security for an advance, the value of the policy shall be assessed at an amount not exceeding the surrender value thereof at the time when the advance is made.

Where a guarantee given in pursuance of a continuing arrangement is taken as additional security for an advance, the advance shall not exceed an amount which may be prescribed or ninety per centum of the amount of the purchase price for the defraying of which the advance is made, whichever is the less, without the consent in writing of the Registrar; and in any such case the basic advance shall not exceed sixty-five per centum of that amount and the excess advance shall not exceed twenty-five per centum of that amount.

Where a building society takes as additional security for an advance to a member a guarantee given in pursuance of a continuing arrangement, the terms of the advance shall not provide for the payment of any sums to the society in respect of the advance after the expiration of a period of twenty years (or such other period, being either longer or shorter, as the Registrar may authorize in writing) from the date on which the advance is made, nor, after the advance has been made by the society, shall the society make any agreement which has the effect of rendering any sums payable to the society in respect of the advance after the expiration of that period:

Provided that nothing in this subsection shall affect the power of a society to make such an agreement in relation to an advance which has been made by the society not less than one year before the making of the agreement if, in the opinion of the directors, it is desirable so to do in order to avoid hardship to a member of the society.

Notwithstanding the provisions of subsections (1) to (7), a building society may, for the benefit of its members, extend loans, advances, guarantees and other credit facilities not secured by land and at such terms and conditions as the society considers appropriate.

A building society may, from time to time as its rules permit, invest any portion of its funds not immediately required for its purposes in or upon any stock, shares or securities for the time being authorized by law for the investment of trust moneys or in any other class or classes of investment authorized by the Cabinet Secretary by notice in the Gazette.

A building society may keep money on current account and deposit account at one or more banks or with the Kenya Post Office Savings Bank.

For the purposes of facilitating repayment to a building society of an advance made or to be made by the society to a member upon the security of land, a society may make to the member, by way of addition to the advance, a further advance of the whole or part of such sum as may be necessary to enable payment to be made of a single premium payable in respect of a policy of life assurance upon the life of the member or the spouse or son or daughter of the member, being a policy which provides for payment, in the event of the death of the person upon whose life the policy is effected before the advance has been repaid, of a sum not exceeding a sum which is sufficient to defray the sums which are, at and after the time of the death, payable to the society in respect of the advance as increased by the additional advance made by the society under the power conferred by this subsection.

Where a society has made an advance to a member upon the security of land, and the advance is an advance to which subsection (7) of section 24 apply, then, if the society subsequently adds to the advance a further advance under the power conferred by this section, those provisions shall also apply in relation to that further advance; and, for the purpose of the application thereto of those provisions, the further advance shall be deemed to have been made at the time when the original advance was made.

Where a society makes such an advance and takes such security without giving notice to the member in accordance with the foregoing provisions of this section, the court may, either upon an application for leave, or upon an application made by the member, reopen the transaction, and may make such orders as to the sums which may be recovered in respect of the advance and of any security given therefor, as to the exercise of any rights conferred by any such security and otherwise as the court considers just.

Notwithstanding the provisions of this Part or any rules made thereunder, a building society shall maintain such minimum holding of liquid assets as the Central Bank shall, from time to time, determine.

A building society which fails to comply, with any of the requirements of subsection (1), within such period as the Central Bank may specify, shall be liable to a penalty interest charge not exceeding one per cent of the amount of the deficiency for everyday on which the offence continues.

A building society shall, as soon as is practicable and not more than four months after the expiration of its financial year, cause to be prepared an account of all the income and expenditure of the society during that financial year and a general statement of its funds and effects, liabilities and assets; and the account and statement shall be attested to by the auditors of the society and shall be counter-signed by at least two directors thereof.

Every auditor in attesting an annual account or statement shall either certify that it is correct, duly vouched and in accordance with the law or specially report to the society in what respect he finds it incorrect, unvouched or not in accordance with the law, and shall also certify that he has at that audit actually inspected the securities belonging to the society, and shall state the number of properties with respect to which evidence of title has been produced to and actually inspected by him.

Every building society shall cause a copy of the account and statement to be published in a national newspaper, and copies of the account and statement shall be available at the offices of the building society not less than fourteen days before the meeting at which they are to be presented.

A copy of the annual account and statement, certified in such manner as may be prescribed, shall be sent to the Registrar within fourteen days after the annual or other general meeting at which it is presented or within five months after the expiration of the financial year to which it relates, whichever period expires first.

If a building society fails to comply with the provisions of this section, the society and every director, secretary or other officer of the society shall be guilty of an offence and liable to a fine not exceeding five thousand shillings.

A building society registered under section 6 shall keep all registers, minute books, books of account and other records, which it is required by this Act to keep, in English.

If a building society fails to comply with the provisions of this section, the society and every director, secretary or other officer of the society shall be guilty of an offence and liable to a fine not exceeding one thousand shillings.

A person who is under the age of twenty-one years may be admitted as a member of a building society the rules of which do not prohibit his admission.

A building society exercising its power of sale of any land mortgaged to it shall take reasonable care to ensure that in the exercise of the power the price at which the land is sold is the best price which can reasonably be obtained; and any agreement if and so far as it relieves or may have the effect of relieving a society from the obligations imposed by this section shall be void.

Where building society has exercised its power of sale of land mortgaged to it, it shall, within twenty-eight days from the completion of the sale, send by registered post to the person who immediately before the sale was the owner of the land at his last known address a notice containing such particulars relating to the sale as may be prescribed.

Nothing in subsection (2) shall affect the operation of any rule of law relating to the duty of a mortgagee to account to a mortgagor.

If a building society contravenes the provisions of subsection (2), the society and every director, secretary or other officer of the society shall be guilty of an offence and liable to a fine not exceeding one thousand shillings.

If a share certificate, savings deposit pass book, subscription share pass book, deposit receipt or fixed deposit receipt, or any statement or other record of payment, issued by a society is lost or destroyed, the society, upon such evidence and subject to such terms and conditions as the directors think fit, and after the loss or destruction thereof has been duly advertised once in the Gazette and once in a newspaper circulating in the town or district in which the member or depositor, as the case may be, resides, may issue a certified copy of the certificate, pass book, receipt, statement or record:

Provided that the directors may authorize the issue of a certified copy without requiring the loss to be advertised.

A certified copy shall thereafter for all purposes take the place of the certificate, pass book, receipt, statement or record so lost or destroyed and be the sole evidence thereof.

A building society may, by special resolution, change its name.

A society which changes its name in accordance with subsection (1) shall, within fourteen days from the date of the meeting at which the resolution was adopted, send to the Registrar two copies of the resolution certified in such manner as may be prescribed.

Subject to section 9, the Registrar shall register one copy of the resolution and return the other to the society endorsed with a certificate of registration.

A change of name by a building society in accordance with the provisions of this section shall not affect any right or obligation of the society or any member thereof, or other person concerned, or render defective any legal proceedings by or against the society, and any legal proceedings that may have been continued or commenced against it by its former name may be continued or commenced against it by its new name.

A building society may, by special resolution, alter or rescind any of its rules or make any additional rule; but no such special resolution shall be valid until registered under subsection (3).

Where a building society has altered or rescinded any of its rules or made any additional rule, it shall, within fourteen days from the date of the meeting at which the resolution was adopted, send to the Registrar two copies of the resolution, certified in such manner as may be prescribed.

If the Registrar is satisfied that the alteration, addition or rescission is in conformity with this Act, he shall register one copy of the resolution and return the other to the society endorsed with a certificate of registration.

Subject to section 53, two or more building societies may unite and become one society, with or without any dissolution or division of the funds of those societies or either of them, upon such terms as are agreed by special resolution of each of them.

Notice of any such union shall be sent to the Registrar in the prescribed form.

Upon completion of the union in terms of this section, the building societies so united shall be deemed to be dissolved and, their registrations having been cancelled, the Registrar shall register the new society in terms of this Act.

Subject to section 53, a building society may by a special resolution transfer its engagements to another building society which may undertake to fulfil those engagements, and a building society may undertake to fulfil engagements of another building society by a special resolution.

Notice of any such transfer shall be sent to the Registrar in the prescribed form and shall be registered by him.

Save as is hereinafter provided, no union of building societies and no transfer of engagements shall take effect unless or until the consent thereto in writing of holders of not less than two-thirds of the whole number of shares of each society party thereto has been obtained.

A building society desiring to unite with one or more other building societies, or to transfer its engagements to another building society, or to undertake to fulfil the engagements of another building society, may make an application in that behalf to the Registrar in the prescribed manner, and shall publish notice of the application in the Gazette and, if the Registrar so requires, in one or more newspapers, and the Registrar, after hearing the society and any other person whom he considers entitled to be heard, may confirm the union, transfer or undertaking notwithstanding that the consent of the holders of two-thirds of the whole number of shares of the society has not been obtained in the manner required by this section.

Where a building society wishes to transfer its business including all its assets and liabilities, to a limited liability company incorporated under the Companies Act (Cap. 486), such building society may make an application to the Cabinet Secretary responsible for finance through the Central Bank in the prescribed manner.

The Central Bank shall examine every application made under subsection (1) and shall forward the application, together with its recommendations thereon, to the Cabinet Secretary responsible for finance.

Where the Cabinet Secretary responsible for finance is satisfied that the intended transfer fulfils the conditions set out in subsection (3), the Cabinet Secretary responsible for finance shall cause the building society to publish a notice in the Gazette and in at least one national daily newspaper informing the public of the intended transfer and inviting any interested party with objections thereto to appear and make representations to the Cabinet Secretary responsible for finance at a specific venue within a period not exceeding thirty (30) days.

The Cabinet Secretary responsible for finance may, after hearing all representations under subsection (4), approve or reject the application.

Repealed by Act No. 7 of 2002, s. 56.

Where the rules of a building society direct that a dispute shall be referred to arbitration by arbitrators, arbitrators shall be nominated in the manner provided by the rules, or, if there is no such provision, may be elected at a general meeting of the society, none of the arbitrators being beneficially interested, directly or indirectly, in the funds of the society.

Not less than three arbitrators shall be chosen by ballot in each case of dispute, the number of the arbitrators and mode of ballot being determined by the rules of the society.

In the case of the death or refusal or neglect of any of the arbitrators to act, the society shall nominate, or elect in general meeting, as the case may require, an arbitrator to act in the place of the arbitrator dying, or refusing or neglecting to act.

The names of all arbitrators nominated or elected to act under the provisions of this section shall be entered in the minute book of the society.

Any award made by arbitrators or the major part of them shall determine the dispute.

Where the parties to a dispute arising in a building society agree to refer the dispute to the Registrar, or where the rules of the society direct disputes to be referred to the Registrar, the award of the Registrar shall have the same effect as that of arbitrators.

The arbitrators or the Registrar shall, at the request of any party to the arbitration or any person claiming under him, and upon payment of the costs and charges of filing the award, cause the award, or a signed copy of it, to be filed in the High Court; and notice of the filing shall be given to the parties by the arbitrators or the Registrar.

An award in an arbitration under this section, on being filed in the High Court in accordance with subsection (7), shall be enforceable as if it were a decree of the Court.

Subject to subsection (2), a determination by arbitrators or by the Registrar under this Act of a dispute shall be binding and conclusive on all parties and shall be final to all intents and purposes, and shall not be subject to appeal and shall not be removed or removable into any court or restrained or restrainable by the injunction of any court.

The arbitrators or the Registrar, as the case may be, may, at the request of either party, state a case for the opinion of the High Court on a question of law (but shall not be compelled to do so), and may grant to either party in the dispute such discovery as to documents and otherwise as might be granted by the High Court, discovery to be made on behalf of the society by such officer of the society as the arbitrators or the Registrar may determine.

The Registrar may at any time, by notice in writing served on a building society or on any person who is or has been an officer of such a society, require the society or person to produce to the Registrar such books, accounts, deeds and other documents relating to the business of the society and to furnish to him such other information relating to that business as he considers necessary for the exercise of the powers given him by this Act, and any such notice may contain a requirement that any information to be furnished in accordance with the notice shall be verified by a statutory declaration.

If a building society or other person fails to comply with the requirements of a notice under this section, the society, and every director, secretary or other officer of the society or such other person, as the case may be, shall be guilty of an offence and liable to a fine not exceeding five thousand shillings.

The Registrar may on the application of one-tenth of the whole number of members of a building society or of fifty members, whichever is the less, each such applicant having been a member of the society for not less than twelve months immediately preceding the date of the application, appoint an accountant or actuary to inspect the books of the society and to report thereon.

A person applying under subsection (1) for inspection shall deposit with the Registrar such sum as a security for the costs of the proposed inspection as the Registrar may require.

All expenses of or incidental to an inspection shall be defrayed by the applicants, or out of the funds of the society, or by the members or officers, or former members or officers, of the society in such proportions as the Registrar may direct.

A person appointed under this section may make copies of any books of the society and take extracts therefrom at all reasonable hours at the registered office of the society or at any place where the books are kept.

The Registrar shall communicate the results of an inspection to the applicants and to the society.

An application under this section shall be supported by such evidence as the Registrar may direct for the purpose of showing that the applicants have good reason for requiring the inspection to be made or the meeting to be called and that they are not actuated by malicious motives in their application.

Notice of the application shall be given to the society as the Registrar may direct.

The Registrar shall require the applicants to give security for the costs of the proposed inspection or meeting before the inspector is appointed or the meeting is called.

All expenses of and incidental to an inspection or meeting shall be defrayed by the applicants or out of the funds of the society, or by the members or officers, or former members or officers, of the society in such proportions as the Registrar may direct.

An inspector appointed under this section may require the production of all or any of the books, accounts, securities and documents of the society, and may examine on oath its officers, members, agents and servants in relation to its business, and may administer an oath accordingly.

The Registrar may direct at what time and place a special meeting under this section is to be held, and what matters are to be discussed and determined at the meeting, and the meeting shall have all the powers of a meeting called according to the rules of the society, and shall in all cases have power to appoint its own chairman, notwithstanding any rule of the society to the contrary.

If, with respect to a building society, the Registrar considers it expedient to do so in the interests of persons who have invested or deposited or may invest or deposit money with the society, he may by order direct that, unless and until the order is revoked, no invitation to subscribe for, or to acquire or offer to acquire, securities or to lend or deposit money shall be made by or on behalf of the society.

Before making an order under this section, the Registrar shall serve on the society a written notice stating his intention to make the order, and shall consider any representations with respect to the proposed order made to him by the society within the period of thirty days from the date of the service of the notice and, if the society so requests, afford it an opportunity of being heard by him within that period.

An order made under subsection (1) may be revoked by a subsequent order of the Registrar.

If an invitation is made in contravention of an order made under subsection (1), the person by whom the invitation is so made shall be guilty of an offence and liable to imprisonment for a term not exceeding two years or to a fine not exceeding ten thousand shillings, or to both.

Where the Registrar is satisfied that a certificate of registration has been obtained for a building society by fraud or mistake, or that any such society exists for an illegal purpose, or has wilfully and after notice from the Registrar violated any of the provisions of this Act, or has ceased to exist, the Registrar may by notice in writing cancel the registration of the society or suspend the registration thereof for a term not exceeding three months, and may renew the suspension from time to time for a similar period.

The Registrar shall, before cancelling or suspending the registration of a building society under powers conferred by subsection (1), give to the society not less than two months’ previous notice in writing, specifying briefly the ground of the proposed cancellation or suspension, and shall, as soon as practicable after the cancellation or suspension takes place, cause notice thereof to be published in the Gazette and in such one or more newspapers (if any) as he may determine.

A building society may appeal to the High Court against the cancellation or suspension of its registration, and thereupon the Court may, if it thinks it just so to do, set aside the cancellation or suspension.

The Registrar may also at the request of a building society, evidenced in such manner as he may direct, cancel the registration of the society.

A building society whose registration has been cancelled or suspended shall from the time of cancellation or suspension (but in the case of suspension only while the suspension lasts, and in any case subject to the right of appeal given by this section) cease absolutely to enjoy the privileges conferred by this Act, but without prejudice to any liability incurred by the society, and any such liability may be enforced against the society as if the cancellation or suspension had not taken place.

If it is found after an inspection under section 63A that the affairs of the building society concerned are being conducted in a manner detrimental to the interests of the members or the interests of the building society, the Central Bank may issue directions to the building society requiring it to take such corrective action as the Central Bank considers to be necessary or to discontinue the harmful practices or procedures.

No directions shall be issued under subsections (1) or (2) unless the building society has been given an opportunity to present its views.

A building society which receives directions under subsections (1) or (2) shall, within the period specified in the directions, comply with the directions and show to the Central Bank that it has done so.

A person who fails to comply with any direction under this section commits an offence and shall, in addition to the penalty prescribed under section 71, be liable to such additional penalty as may be prescribed, for each day or part thereof during which the offence continues.

The Central Bank or the Cabinet Secretary may publish in whole or in part, at such times and in such manner as it or he thinks fit, any information furnished to it or him under this Act:

Provided that the information so furnished shall not be published if it would disclose the financial affairs of any person, unless the consent in writing of that person has first been given.

Except as provided in this Act, no person shall disclose or publish any information, which comes into his possession as a result of the performance of his duties or responsibilities under this Act and, if he does so, he shall, for purposes of section 71 be deemed to have contravened provisions of this Act.

No society, association, partnership or company shall commence or carry on business in Kenya as a building society unless it is registered and licensed in terms of this Act.

No society, association, partnership or company shall commence or carry on business in Kenya under or by any name which includes the word "Building Society" unless it is registered and licensed in terms of this Act.

The Registrar may at any time make an inspection or cause an inspection to be made of the books, accounts and records of any society, association, partnership or company for the purpose of determining whether it is carrying on the business of a building society or not.

A society, association, partnership or company which contravenes the provisions of subsection (1) or subsection (2) shall be guilty of an offence and liable to a fine not exceeding one hundred thousand shillings.

A person who is guilty of an offence under subsection (5) shall be liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding one year or to both.

If a person by false representation or imposition obtains possession of any moneys, securities, books, papers or other effects of a building society, or having them in possession withholds or misapplies them or wilfully applies any part thereof to purposes other than those expressed or directed in the rules of the society and authorized by this Act, he shall be guilty of an offence and liable to a fine not exceeding five thousand shillings and to be ordered to deliver up to the society all such moneys, securities, books, papers or other effects and to repay the amount of money applied improperly, and in default of delivery of effects or repayment of the amount of money shall be liable to imprisonment for a term not exceeding six months.

The Registrar may, subject to section 9, allow or refuse an application for registration made under subsection (1).

A person aggrieved by the refusal of the Registrar to register a building society under this section may within one month, or such extended period as the Cabinet Secretary may allow, from the date of refusal, appeal to the Cabinet Secretary, whose decision shall be final.

Where the Registrar allows an application, he shall enter the prescribed particulars relating to the society in the register, and thereupon the society shall, subject to section 23, become entitled to hold land and to take mortgages of land in Kenya.

The Registrar shall issue a certificate of registration to every building society registered under this section.

No building society registered or incorporated outside Kenya shall commence business in Kenya as a building society unless it is registered and licensed under this Act.

The Cabinet Secretary may, by order, either generally or in any particular case, exempt a society registered under section 75 from all or any of the provisions of this Act, or direct that such provisions of this Act as are specified in the order shall, in their application to the society, be modified in such manner as may be provided therein.

The Chief Justice may make rules of court for regulating proceedings before the High Court, and applications and appeals thereto, under the provisions of this Act, and for the fees to be paid in respect thereof.

Subject to subsections (1) and (2), the Cabinet Secretary may make regulations prescribing anything required to be prescribed under this Act, and for the better carrying into effect of the provisions of this Act, and, without prejudice to the generality of the foregoing, regulations may provide for the procedure in the registry of building societies, the hours in which the registry is to open for business, the forms to be used and the fees to be paid in respect of any matter under this Act required, permitted or entitled to be done.

Without prejudice to the generality of subsection (3), the Cabinet Secretary may, in regulations, prescribe penalties to be paid by building societies which fail or refuse to comply with any directions of the Central Bank under this Act, which shall not exceed one million shillings in the case of a building society or one hundred thousand shillings, in the case of a natural person, and may prescribe additional penalties not exceeding ten thousand shillings in each case for each day or part thereof during which such failure or refusal continues.