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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

 

Banking Act (2015)

Banking Act Oct 2015

 

Microfinance Act (2006)

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

 

RBS Framework

CBKs Risk Based Supervision Framework – May 2013

 

KEPSS Rules and Procedures

KEPSS Rules and Procedures

 

Guidelines for Application for the Authorisation of Payment Service Providers

Guidelines for Application for the Authorisation of Payment Service Providers

 

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 2013

CREDIT REFERENCE BUREAU REGULATIONS 2013

 

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