ARTICLE · 18 MARCH 2024

Kenya Update: Banking (Penalties) Regulations, 2024

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The Banking Act (Chapter 488 of the Laws of Kenya) ("the Act") section 55(2) authorises the Central Bank of Kenya ("CBK") to prescribe penalties to be paid by institutions...

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The Banking Act (Chapter 488 of the Laws of Kenya) ("the Act") section 55(2) authorises the Central Bank of Kenya ("CBK") to prescribe penalties to be paid by institutions, credit reference bureaus (or any other person) that fail or refuse to comply with any directions of the CBK under the Act or Prudential Guidelines. The CBK has published a draft of the Banking (Penalties) Regulations, 2024 ("the Draft Regulations") and has invited the public to comment on the Draft Regulations by 18 March 2024. If passed, the Draft Regulations will revoke the existing Banking (Penalties) Regulations, 1999 ("the Existing Regulations").

The purpose of the Draft Regulations is to promote compliance with and deter a violation of the Act and the Prudential Guidelines by providing a clear framework for assessing a violation and ensuring that an institution or person is penalised for a violation.

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