Section 34 of The Banking Act CAP 488: Powers of Central Bank to intervene in management

(1) This section applies, and the powers conferred by subsection (2) may be exercised, in the following circumstances—
(a) if the institution fails to meet any financial obligation, when it falls due including an obligation to pay any depositor;
(b) if a petition is filed, or a resolution proposed, for the winding up of the institution or if any receiver or receiver and manager or similar officer is appointed in respect of the institution or in respect of all or any part of its assets;
(c) if the auditor of an institution makes a report to the Central Bank under the provisions of subsection (4) of section 24;
(d) if the Central Bank discovers (whether on an inspection or otherwise) or becomes aware of any fact or circumstance which, in the opinion of the Central Bank, warrants the exercise of the relevant power in the interests of the institution or its depositors or other creditors;
(e) if the institution is significantly undercapitalized; or
(f) if the institution fails—
(i) to submit a capital restoration plan or a plan to resolve all deficiencies as directed under section 33A; or
(ii) to add more capital, and it fails, neglects or refuses to comply, with an order or to implement a plan of correction.
(2) In any case to which this section applies, the Central Bank may in consultation with the Cabinet Secretary—
(a) repealed by Act No. 10 of 2012, s. 75(1);
(b) appoint Kenya Deposit Insurance Corporation to assume the management control and conduct of the affairs and business of an institution and to exercise all the powers of the institution to the exclusion of its board of directors including the use of its corporate seal;
(c) remove any officer or employee of an institution who, in the opinion of the Central Bank, has caused or contributed to any contravention of any provision of this Act or any regulations made thereunder, or to any deterioration in the financial stability of the institution, or has been guilty of conduct detrimental to the interests of depositors or other creditors of the institution;
(d) appoint a competent person familiar with the business of the institution to its board of directors to hold office as a director, who shall not be capable of being removed from office without the approval of the Central Bank;
(e) by notice in the Gazette, revoke or cancel any existing power of attorney, mandate, appointment or other authority by the institution in favour of any officer or employee or any other person;
(f) restrict the institution from engaging in new foreign exchange business;
(g) prohibit the institution from engaging in new off-balance sheet transactions; and
(h) prohibit the institution from engaging any new agents or direct the institution to terminate any agency arrangement.
(3) Repealed by Act No. 10 of 2012, s. 75(1).
(3A) Deleted by Act No. 14 of 2015, s. 37.
(3B) Deleted by Act No. 14 of 2015, s. 37.
(4) Repealed by Act No. 10 of 2012, s. 75(1).
(5) Repealed by Act No. 10 of 2012, s. 75(1).
(6) Repealed by Act No. 10 of 2012, s. 75(1).
(7) If any officer or employee of an institution removed under the provisions of subsection (2)(b) is aggrieved by the decision, he may apply to the High Court and the Court may confirm, reverse or modify the decision and make such other in the circumstances as it thinks just; and pending the determination of any application or appeal therefrom, the order of removal shall remain in effect.
(8) Neither the Central Bank nor any officer or employee thereof nor any manager nor any other person appointed, designated or approved by the Central Bank under the provisions of this Part shall be liable in respect of any act or omission done in good faith by such officer, employee, manager or other person in the execution of the duties undertaken by him

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