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Legislation and Guidelines

Legislation (or “statutory law”) is law that has been promulgated (or “enacted”) by a legislature or other governing body. Before an item of legislation becomes law it may be known as a bill, and may be broadly referred to as “legislation” while it remains under consideration to distinguish it from other business.

The Central Bank of Kenya is in various ways guided by the following pieces of legislation:

    • Constitution of Kenya 2010
    • Central Bank of Kenya Act (2015)
    • Banking Act (2015)
    • Microfinance Act (2006)
    • The National Payment System Act (2011)
    • Kenya Deposit Insurance Act 2012

Regulations and Guidelines Pursuant to the Banking Act (Cap 488)

Regulations and Guidelines issued by the Central Bank of Kenya subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things.

Given the interconnectedness of the banking industry and the reliance that the national (and global) economy hold on banks, it is important for regulatory agencies to maintain control over the standardised practices of these institutions. The objectives of these  regulations are:


  • Prudential—to reduce the level of risk to which bank creditors are exposed (i.e. to protect depositors)
  • Systemic risk reduction—to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures
  • Avoid misuse of banks—to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime
  • To protect banking confidentiality Credit allocation—to direct credit to favoured sectors to provide the best customer service in this competitive age.

Constitution of Kenya 2010
Constitution of Kenya 2010

Central Bank of Kenya Act (2015)
Central Bank of Kenya Act 1st Oct 2015
Foreign Exchange Guidelines
Forex Bureau Guidelines 2011 – March 18 2011
Forex Bureau Penalty Regulations
The Money Remittance Regulations 2013

Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019

Central Bank of Kenya (Digital Credit Providers) Regulations 2022

Banking Act (2015)
Banking Act Oct 2015

Draft Banking (Penalties) Regulations 2024

Draft Banking (Penalties) Regulations 2024

Microfinance Act (2006)
Microfinance Deposit Taking Microfinance Institutions Regulations
Microfinance Categorization of the Deposit Taking Microfinance Institution
Guideline on the Appointment and Operations of Third Party Agents
Guideline on Marketing Offices and Agencies for DTMs

The National Payment System Act (2011)
National Payment System Act (No 39 of 2011)
National Payment System Regulations 2014

Kenya Deposit Insurance Act 2012
Kenya Deposit Insurance Act 2012

Prudential Guidelines 2013
Prudential Guidelines

Risk Management Guidelines 2013
Risk Management Guidelines January 2013

Guidance Notes
Guidance Note No1 of 2010
Guidance Note On Holding Of Board Meetings Through Video Conferencing
STR Guidance Note
Guidance Note On Internal Capital Adequacy Assessment Process
Guidance Note On Cybersecurity For The Banking Sector
Guidance Note on Conducting Money Laundering/ Terrorism Financing Risk Assessment
CBK Guidance Note on Implementation of IFRS 9

Guidance on Climate-Related Risk Management

RBS Framework
CBKs Risk Based Supervision Framework – May 2013

Kenya Foreign Exchange Code
Statement of Commitment to the FX Global Code

The Foreign Exchange Code

FX Code Self-Assessment Template

Rules for Electronic Matching Systems (EMS)

KEPSS Rules and Procedures
KEPSS Rules and Procedures

Guidelines for Application for the Authorisation of Payment Service Providers
Procedures for Authorisation of Payment Service Providers

Payment Service Providers Authorisation Checklist

Schedules to KEPSS Rules and Procedures
Schedule A
Schedule B
Schedule C
Schedule D
Schedule E
Schedule F
Schedule G
Schedule H

CBK (Currency Handling) Regulations 2010
Cbk Currency Handling Regulations 2010

Banking (Credit Reference Bureau) Regulations 2020
Credit Reference Bureau Regulations, 2020

Guideline on Incidental Business Activities,2013
Guideline on Incidental Business Activities

Guideline on Non Operating Holding Companies
Guideline Non Operating Holding Companies

Over the Counter trading Guidelines For Treasury Bills
OTC Operational Guidelines

Guideline on Cybersecurity for Payment Service Providers

Guidelines on Cybersecurity for PSPs

Kenya Banking Sector Charter 2019

Kenya Banking Sector Charter 2019