The Microfinance Act No 06 of 2016 was approved by the Parliament in May 2016. Thereafter it was enacted by Gazette in July. During this period and the months that followed, LMFPA had several discussions with the Central Bank and the NGO Secretariat on the regulatory guidelines that would supervise the industry practitioners. The direct supervision of Microfinance companies will be conducted by the Central Bank while Microfinance NGOs and Micro Credit NGOs will be directly supervised by the NGO Secretariat under the guidelines of the Central Bank. LMFPA’s series of discussions with the regulators included licensing criteria, statutory reserves, deposit criteria, governance of MFIs and reporting requirements.
The discussions that were held so far had satisfactory outcomes as the regulators were very attentive to the opinions and feedback of microfinance practitioners and responded by adjusting some of the regulation criteria so that a majority of the current microfinance players can benefit from it. The Microfinance guidelines for companies as well as NGOs are expected to be finalized during the last quarter of the year and licensing and registering of practitioners is scheduled to commence from the beginning of 2017.