NAIROBI, Kenya- Private limited companies and limited liability partnerships (LLPs) in Kenya are on the clock to update their beneficial ownership registers.
The Business Registration Service (BRS) has now mandated these entities to maintain and submit accurate information on their beneficial owners, with private limited companies required to file by November 30, 2024.
LLPs, meanwhile, will receive their deadlines at a later date, according to Joyce Koech, the Registrar of Companies.
For companies and LLPs, these filing requirements come under compliance with the Companies Act and the Limited Liability Partnership Act.
“Effectively, all companies and LLPs are required to prepare and maintain a register of beneficial owners,” Koech stated, emphasizing that adherence is non-negotiable. Entities failing to comply with this mandate could face significant penalties and even removal from the BRS register.
Companies or LLPs that miss the filing deadline will incur a Sh500,000 fine, with an additional Sh50,000 fine per day as long as they remain non-compliant.
This financial pressure intensifies under Section 894 of the Companies Act and Section 33A of the Limited Liability Partnerships Act, where entities can face deregistration.
This move seeks to enhance transparency, accountability, and anti-money laundering efforts by maintaining a clear record of those controlling companies and partnerships in Kenya.
Even after the initial submission, entities must stay vigilant. Any changes to the beneficial ownership register must be updated within 14 days.
Failure to do so results in a fine of Sh2,000, alongside a Sh100 daily penalty for the company and each officer involved.
This stipulation aims to keep the BRS records accurate and up-to-date, a priority in global efforts against financial crimes.
This regulatory drive aligns with Kenya’s commitment to Anti-Money Laundering (AML) and Combating Terrorism Financing (CFT) standards.
The BRS stresses the importance of accurate, up-to-date beneficial ownership information, with Koech noting that these filings are vital to enhancing Kenya’s business transparency.
The register plays a crucial role in tracking ownership, helping combat illicit finance activities, and contributing to a safer economic environment.
For companies and LLPs, complying with the beneficial ownership register requirements isn’t just a legal duty—it’s a step toward building a more transparent and accountable business ecosystem in Kenya.
As the deadline approaches, private limited companies must act promptly to avoid penalties, while LLPs are encouraged to prepare for their impending submission deadlines.
