The Banking Act Cap 488 in Kenya

(1) In this Act, unless the context otherwise requires— "agency" means an entity contracted by an institution and approved by the Central Bank or subcontracted by such entity to provide the services of the institution on behalf of the institution, in such manner as may be prescribed by the Central...

(1) No person shall in Kenya— (a) transact any banking business or financial business or the business of a mortgage finance company unless it is an institution or a duly approved agency conducting banking business on behalf of an institution which holds a valid licence; (b) unless it is a bank and...

(1) Every institution intending to transact banking business, financial business or the business of a mortgage finance company in Kenya shall, before commencing such business, apply in writing to the Central Bank for a licence. (2) Deleted by Act No. 9 of 2006, s. 4(b). (3) The Central Bank shall,...

(1) Subject to section 4, the Central Bank may, upon payment of the prescribed fee, grant a licence to an institution to carry on business. (2) The Central Bank may endorse on a licence granted under this section such conditions as the Central Bank considers necessary and may from time to time add,...

(1) The Central Bank may, by notice in writing to the institution, revoke a licence if the institution— (a) ceases to carry on business in Kenya or goes into liquidation or is wound up or is otherwise dissolved; or (b) fails to comply with this Act, the Central Bank of Kenya Act (Cap. 491), or any...

(1) A licence shall not be granted to an institution unless the institution meets the minimum capital requirements specified in the Second Schedule. (2) The Cabinet Secretary may, by order published in the Gazette, amend the Second Schedule. (3) Every order made under subsection (2) shall be laid...

(1) No institution shall open in Kenya a branch or a new place of business or change the location of a branch or an existing place of business in Kenya without the approval of the Central Bank. (2) Before granting an approval under subsection (1), the Central Bank may require to be satisfied as to...

(1) No institution shall open a branch or establish a subsidiary outside Kenya, except with the prior approval of the Cabinet Secretary. (2) An institution seeking approval under subsection (1) shall apply, in writing, to the Cabinet Secretary through the Central Bank. (3) Before granting approval...

(1) No amalgamation or arrangement which involves an institution as one of the principal parties to the relevant transaction, and no arrangement for the transfer of all or any part of the assets and liabilities of an institution to another person, shall have legal force except with the prior written...

(1) An institution shall ensure that no person is appointed or elected as a director or appointed as a senior officer unless the Central Bank has certified the person as a fit and proper person to manage or control the institution. (2) A person shall ensure that the person does not become a...

(1) An institution shall not in Kenya grant to any person or permit to be outstanding any advance or credit facility or give any financial guarantee or incur any other liability on behalf of any person, so that the total value of the advances, credit facilities, financial guarantees and other...

(1) An institution shall not in Kenya— (a) grant or permit to be outstanding any advance or credit facility against the security of its own shares; or (b) grant or permit to be outstanding any advance or credit facility or give any financial guarantee or incur any other liability to, or in favour...

An institution shall not— (a) engage, alone or with others, in wholesale or retail trade, including the import or export trade, except in the course of the satisfaction of debts due to it; and any trading interest carried on by an institution at the commencement of this Act shall be disposed of by...

(1) No person other than— (a) another institution; (b) the Government of Kenya or the Government of a foreign sovereign State; (c) a State corporation within the meaning of the State Corporations Act (Cap. 446); (d) a foreign company which is licensed to carry on the business of an institution...

(1) No institution, other than a mortgage finance company, shall make loans or advances for the purchase, improvement or alteration of land, so that the aggregate amount of those loans or advances exceeds forty percent of the amount of its total deposit liabilities. (2) The Central Bank may...

(1) A mortgage finance company shall make loans— (a) for the purpose of the acquisition, construction, improvement, development, alteration or adaptation for a particular purpose of land in Kenya; and (b) the repayment of which, with interest and other charges, is secured by first mortgage or...

(1) Subject to this section, no person, other than an institution which holds a valid licence or a duly approved agency conducting banking business on behalf of an institution, shall invite or accept deposits in the course of carrying on a deposit-taking business. (2) For the purposes of this...

(1) No institution shall impose any form of charges on a savings, seven day call or fixed deposits account. (2) An institution shall, in respect of a savings account, pay interest accruing or a return in the case of an institution carrying out business in accordance with Islamic law to that account...

The core capital of an institution shall at all times be not less than eight per cent of its total deposit liabilities.

(1) The Central Bank may prescribe the minimum ratios which shall be maintained by institutions and banking groups as between their core capital and total capital on one hand and their risk-weighted assets (including their total loans and advances) and risk-weighted off balance sheet items on the...

(1) An institution shall maintain such minimum holding of liquid assets as the Central Bank may from time to time determine. (2) For the purpose of this section, "liquid assets" means all or any of the following— (a) notes and coins which are legal tender in Kenya; (b) balances held at the...

(1) No institution incorporated in Kenya shall pay any dividend on its shares or make any other form of distribution to its shareholders until all its capitalized expenditure (including preliminary expenses, share-selling commission, brokerage, amount of losses incurred and items of expenditure not...

(1) The financial year of every institution shall be the period of twelve months ending on the 31st December in each year. (2) Where the financial year of an institution is different from that prescribed in this section, the institution shall, within twelve months of the commencement of this...

(1) All entries in any books and all accounts kept by an institution shall be recorded and kept in the English language, using the system of numerals employed in Government accounts. (2) The Central Bank may, at any time, issue directions to an institution requiring it to maintain such books,...

(1) Every institution shall— (a) exhibit throughout the year in a conspicuous position in every office and branch in Kenya’ a copy of its last audited financial statements which shall be in conformity with the minimum financial disclosure requirements prescribed from time to time by the Central...

(1) An institution shall, not later than three months after the end of its financial year, submit to the Central Bank an audited balance sheet, showing its assets and liabilities in Kenya, and an audited profit and loss account covering its activities in Kenya together with a copy of the auditor’s...

(1) Subject to subsection (7), every institution shall appoint annually an auditor (within the meaning of section 3(1) of the Companies Act (Cap. 486)) and approved by the Central Bank. (1A) An auditor appointed under subsection (1) shall audit and report on the annual balance sheet and profit and...

(1) No institution shall remove or change its auditor except with the prior written approval of the Central Bank. (2) An auditor of an institution shall forthwith give written notice to the Central Bank if he— (a) resigns from office; (b) does not seek to be re-appointed; or (c) includes in his...

(1) No duty to which an auditor of an institution may be subject shall be regarded as contravened by reason of his communicating in good faith to the Central Bank, whether or not in response to a request made by it, any information or opinion on a matter to which this Part applies and which is...

The Central Bank shall collect such date and other information as may be necessary to enable it to maintain supervision and surveillance of the affairs of institutions or their duly authorised agencies and the protection of their depositors and, for this purpose, may require institutions to submit...