Kenya Act or statute

Parliament of Kenya

Central Bank of Kenya Act

Jurisdiction: Kenya
Structure: 98 provisions
Citation: Cap. 491
Dates: As at 27 Dec 2024

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Dates: As at 27 Dec 2024

Source attribution: Source: Kenya Law

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“Provides the short title: the Act may be cited as the "Central Bank of Kenya Act."”

Provides the short title: the Act may be cited as the "Central Bank of Kenya Act." This section provides definitions of terms used in the Act (for example: "authorized bank", "authorized bureau", "the Bank", "currency", "resident", and related terms). Establishes the Central Bank of Kenya as a corporate body with powers to own property, contract, sue and be sued; it may make rules (not inconsistent with the Act); it shall exercise central banking functions unless excluded and is not subject to the Companies Act or the Banking Act. Section 4A lists the Bank's objects including powers to manage foreign exchange policy and reserves, license and supervise various financial entities, promote payment/clearing/settlement systems, act as Government banker and fiscal agent, and issue currency. The Bank must include specified policy content in monetary policy statements, and the Cabinet Secretary must lay those statements before the appropriate committee of the National Assembly within the next parliamentary session.

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PRELIMINARY - 1. Short title

Provides the short title: the Act may be cited as the "Central Bank of Kenya Act."

Section 1

MANAGEMENT - 17. Preservation of secrecy

Certain Bank officers must not disclose information acquired in their duties except when acting for the purpose of performing those duties or exercising their powers.

Section 17

EXTERNAL RELATIONS - 31.[Repealed by ActNo. 8 of 2008, s. 74]

Section 31 has been repealed.

Section 31

CREDIT GUARANTEE BUSINESS - 33W. Registration

Persons intending to carry on credit guarantee business in Kenya must apply to the Bank for registration; applications must be in the prescribed form with the prescribed fee; the Bank will set registration requirements, issue certificat…

Section 33W

TRANSITIONAL PROVISIONS - 59. Transitional

Section 59

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Showing 98 of 98 provisions

Provision 60Offence 16Repeal 11Commencement 5

Part I

PRELIMINARY

§ 1PRELIMINARY - 1. Short titleShort title

Provides the short title: the Act may be cited as the "Central Bank of Kenya Act."

Section 1. Short title Section This Act may be cited as the Central Bank of Kenya Act.

Section 1Verify source

§ 2PRELIMINARY - 2. InterpretationInterpretation

This section provides definitions of terms used in the Act (for example: "authorized bank", "authorized bureau", "the Bank", "currency", "resident", and related terms).

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "authorized bank" means a specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized bureau" means a foreign exchange bureau ("a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized dealer" means an authorized bank ("a specified bank licensed by the Bank under;") , authorized bureau ("a foreign exchange bureau licensed by the Bank under;") , authorized mortgaged finance company, an authorized money remittance provider ("a money remittance operator licensed by the Bank underto carry out the business of money remittance;") or an authorized microfinance bank ("a microfinance bank licensed by the Bank under;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized microfinance bank" means a microfinance bank ("an institution licensed under the Microfinance Act ();") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized money remittance provider" means a money remittance operator ("a company incorporated in Kenya whose main object consists of the acceptance of monies for the purpose of transmitting them to persons resident in Kenya or another country as prescribed by the Bank by regulations;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B to carry out the business of money remittance; "authorized mortgage finance Company" means a mortgage finance company licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "the Bank" means the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under section 3 ; "bank" means a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act ( Cap. 488 ), whether in Kenya or elsewhere; “beneficial owner" has the meaning assigned to it under the Companies Act ( Cap. 486 ); "Board" means the Board of Directors of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") appointed under Part IV of this Act; “buy now pay later” means an arrangement whereby the consumer purchases goods or assets, whether or not secured on the goods or assets, and pays later in instalments with or without interest; "Cabinet Secretary" means the Cabinet Secretary for the time being responsible for finance; "convertible" , in relation to any exchange, means exchange which is freely negotiable and transferable in international exchange markets at exchange rate margins consistent with the Articles of Agreement of the International Monetary Fund; “credit provider” includes a non-deposit taking credit provider; "currency" means the currency of Kenya ("bank notes and coins issued by the Bank under(1) and any right to receive such bank notes or coins in respect of any credit or balance at a bank or financial institution located within or outside Kenya;") or foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; "currency of Kenya" means bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") notes and coins issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 22 (1) and any right to receive such bank notes or coins in respect of any credit or balance at a bank or financial institution located within or outside Kenya; "financial institution" means a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act ( Cap. 488 ), whether in Kenya or elsewhere; "foreign currency" means bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") notes or coins in respect of any credit or balance at a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") either within or outside Kenya; "foreign exchange bureau" means a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; "foreign exchange business" — (a) in relation to a specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") , means— (i) buying, selling, borrowing or lending foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") or any other business involving transactions in foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; (ii) settling payments to or from Kenya or in Kenya between residents and non-residents; (b) in relation to a foreign exchange bureau ("a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency;") , means the business of— (i) buying or selling foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; or (ii) settling payments to or from Kenya as prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; (c) in relation to an authorised money remittance provider, means the business of foreign exchange transfers consisting of the acceptance of monies for the purpose of transmitting them to persons resident in Kenya or another country as prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; (d) in relation to a microfinance bank ("an institution licensed under the Microfinance Act ();") , the business of— (i) buying, selling, borrowing or lending foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") or any other business involving transactions in foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; (ii) settling payments to or from Kenya or in Kenya between residents and non-residents; (e) in relation to a specified mortgage finance company, the business of— (i) buying, selling, borrowing or lending foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") or any other business involving transactions in foreign currency ("bank notes or coins which are or have at any time been legal tender in any territory outside Kenya and any right to receive such bank notes or coins in respect of any credit or balance at a bank either within or outside Kenya;") ; (ii) settling payments to or from Kenya or in Kenya between residents and non-residents; (f) in relation to any other person or body of persons granted a permit by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 63(3), means engagement in such limited foreign exchange transactions as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may permit; "microfinance bank" means an institution licensed under the Microfinance Act ( Cap. 493C ); "money remittance operator" means a company incorporated in Kenya whose main object consists of the acceptance of monies for the purpose of transmitting them to persons resident in Kenya or another country as prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") by regulations; "mortgage refinance business" means the business of providing long term financing to primary mortgage lenders for housing finance and any other activity that the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may from time to time prescribe; "mortgage refinance company" means a non-deposit taking company established under the Companies Act ( Cap. 486 ) and licensed by the Bank to conduct mortgage refinance business; “non-deposit taking credit business” means— (a) granting of loans or credit facilities, whether or not digitally, to members of the public or a section of it, with or without interest, and either secured or unsecured on the goods or assets purchased; (b) asset financing whether directly or through a third-party financier; (c) buy now pay later arrangements as determined by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") but does not include hire purchase agreements governed by the Hire-Purchase Act; (d) credit guarantees; (e) pay as you go arrangements as maybe determined by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; (f) peer to peer lending under collective investment schemes regulated under the Capital Markets Act; and (g) any other activity as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may determine to be a non-deposit taking credit business for purposes of this Act; Provided that this does not include any credit arrangements involving the provision of credit by a person that is merely incidental to the sale of goods and provision of services by the person. “non-deposit-taking credit provider” means a person licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to carry on non-deposit taking credit business using own funds and assets but does not include the national government or county government; “peer to peer lending” means a form of crowdfunding that uses online platforms to raise unsecured loans which are paid back with interest; “specified credit guarantee company” means a licensed credit guarantee company which is specified by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33W of this Act. "non-resident" means a person or body of persons other than a resident ; "payment" means the transfer of currency ("the currency of Kenya or foreign currency;") for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") , financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") or a microfinance bank ("an institution licensed under the Microfinance Act ();") which can be drawn upon; "payment for current transaction" means a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") other than a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") for transferring capital and includes— (a) a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") due in connection with trade; (b) a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") due as interest or as net income or return from other investment; (c) a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") for amortization of a loan or for depreciation of direct investment; or (d) a remittance for family living expenses; "public entity" means the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , on the recommendation of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , as a public entity for the purposes of this Act; "resident" means— (a) an individual who has been present in Kenya continuously for a period of at least one year or who has declared his intention to reside in Kenya for a period of at least one year to Kenyan immigration authorities; (b) the Government of Kenya or any accredited official of its diplomatic missions residing outside Kenya; (c) a company or other body of persons whose principal place of business is located in Kenya and branches of such company or body located in Kenya; (d) branches of a company or other body of persons carrying on business in Kenya whose principal place of business is located outside Kenya, but excludes any foreign diplomatic mission or any of its accredited officials or any organization established in or outside Kenya by international treaty or any of its accredited officials; "shilling" means a Kenya shilling as provided in section 19 of this Act, or a shilling issued by the East African Currency Board for so long as it is legal tender in Kenya in accordance with this Act; “significant shareholder” has the meaning assigned to it under the Banking Act ( Cap. 488 ); "specified bank" means any bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") within the meaning of such expression in the Banking Act ( Cap. 488 ) which is specified by the Bank for the purposes of this Act; “specified digital credit provider” means a licensed digital credit provider within the meaning of section 33R ; "specified financial institution" means a financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") or mortgage finance company within the meaning of the Banking Act which is specified by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for the purposes of this Act; "specified microfinance bank" means a licensed microfinance bank ("an institution licensed under the Microfinance Act ();") within the meaning of the Microfinance Act ( Cap. 493C ) which is specified by the Bank for the purposes of this Act; "specified mortgage refinance company" means a licensed mortgage refinance company ("a non-deposit taking company established under the Companies Act () and licensed by the Bank to conduct mortgage refinance business;") within the meaning of section 33P , which is specified by the Bank for the purposes of the Act. [Act No. 9 of 1989 , 2nd Sch., Act No. 10 of 1995 , s. 2, Act No. 10 of 2010 , s. 71, Act No. 57 of 2012 , s. 52, Act No. 41 of 2013 , Sch., Act No. 10 of 2018 , s. 66, Act No. 15 of 2021 , s. 2, Act No. 10 of 2023 , Sch., Act No. 20 of 2024 , s. 4.]

Section 2Verify source

Part II

ESTABLISHMENT, CONSTITUTION AND OBJECTS

§ 3ESTABLISHMENT, CONSTITUTION AND OBJECTS - 3. Establishment of Bank and legal statusProvision

Establishes the Central Bank of Kenya as a corporate body with powers to own property, contract, sue and be sued; it may make rules (not inconsistent with the Act); it shall exercise central banking functions unless excluded and is not subject to the Companies Act or the Banking Act.

Section 3. Establishment of Bank and legal status Section 3(1) There is hereby established a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") which shall be known as the Central Bank of Kenya and which shall also be known by the alternative corporate name of the Banki Kuu ya Kenya. Section 3(2) The Bank shall be a body corporate with perpetual succession and a common seal, with power to acquire, own, possess and dispose of property, to contract, and to sue and to be sued in its own name. Section 3(3) The Bank shall exercise any type of central banking function unless specifically excluded under this Act, and shall enjoy all the prerogatives of a central bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") . Section 3(4) The Bank may make its own rules of conduct or procedure, not inconsistent with the provisions of this Act, for the good order and proper management of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 3(5) The Bank shall not be subject to the Companies Act ( Cap. 486 ) or the Banking Act ( Cap. 488 ). [Act No. 14 of 1982 , s. 30, Act No. 18 of 1986 , Sch.]

Section 3Verify source

§ 4ESTABLISHMENT, CONSTITUTION AND OBJECTS - 4. Principal object ofthe BankCommencement

The Bank must formulate and implement monetary policy to achieve and maintain stability in the general level of prices; must foster liquidity, solvency and functioning of a stable market-based financial system; and must, subject to subsections (1) and (2), support the Government's economic policy. The Cabinet Secretary must, at least every 12 months and in consultation with the Bank, specify the price stability target and economic policies, with the first specification at the beginning of the financial year after this section commences.

Section 4. Principal object ofthe Bank Section 4(1) The principal object of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be to formulate and implement monetary policy directed to achieving and maintaining stability in the general level of prices. Section 4(2) The Bank shall foster the liquidity, solvency and proper functioning of a stable market-based financial system. Section 4(3) Subject to subsections (1) and (2) , the Bank shall support the economic policy of the Government, including its objectives for growth and employment. Section 4(4)(a) the price stability targets of the government; and Section 4(4)(b) the economic policy to be taken by the Government. Section 4(5) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall specify at least in every period of 12 months, the price stability target in consultation with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and economic policies to be taken by the Government; provided that the first such specification shall be made at the beginning of the financial year next following the commencement of this section. Section 4(6)(a) publish the notice in such a manner as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") consider fit; and Section 4(6)(b) lay a copy of the notice before the appropriate committee of the National Assembly.

Section 4Verify source

§ 4AESTABLISHMENT, CONSTITUTION AND OBJECTS - 4A. Other objects ofthe BankProvision

Section 4A lists the Bank's objects including powers to manage foreign exchange policy and reserves, license and supervise various financial entities, promote payment/clearing/settlement systems, act as Government banker and fiscal agent, and issue currency.

Section 4A. Other objects ofthe Bank Section 4A(1)(a) formulate and implement foreign exchange policy; Section 4A(1)(b) hold and manage its foreign exchange reserves; Section 4A(1)(c) license and supervise authorised dealers; Section 4A(1)(d) formulate and implement such policies as best promote the establishment, regulation and supervision of efficient and effective payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") , clearing and settlement systems; Section 4A(1)(da) license and supervise non-deposit-taking credit providers not regulated under any other written law; Section 4A(1)(db) license and supervise credit guarantee companies not regulated under any other written law; Section 4A(1)(e) act as banker and advisor to, and as fiscal agent of the Government; Section 4A(1)(f) issue currency ("the currency of Kenya or foreign currency;") notes and coins; and Section 4A(1)(g) license and supervise mortgage refinance companies. Section 4A(1)(h) banks and their agents; Section 4A(1)(h)(i) banks and their agents; Section 4A(1)(h)(ii) mortgage finance companies and their agents; Section 4A(1)(h)(iii) mortgage refinance companies and their agents; Section 4A(1)(h)(iv) microfinance banks and their agents; Section 4A(1)(h)(v) money remittance providers and their agents; Section 4A(1)(h)(vi) foreign exchange bureaus and their agents; Section 4A(1)(h)(vii) non-deposit taking credit providers and their agents; Section 4A(1)(h)(viii) payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") service providers; Section 4A(1)(h)(viiia) credit guarantee companies; and Section 4A(1)(h)(ix) any other entity licensed by the Central Bank under any written law. Section 4A(2) In subsection (1)(d) — "clearing" means the process of transmitting, reconciling and confirming payments prior to settlement, including the netting of payments and the establishment of net positions for settlement; " payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") system" means a system of instruments, procedures and rules for the transfer of funds among system participants; "settlement" means an act that discharges financial obligations between two or more parties. [Act No. 9 of 1996 , s. 2, Act No. 15 of 2003 , s. 52, Act No. 10 of 2018 , s. 67, Act No. 15 of 2021 , s. 3, Act No. 10 of 2023 , Sch., Act No. 20 of 2024 , s. 5.]

Section 4AVerify source

§ 4BESTABLISHMENT, CONSTITUTION AND OBJECTS - 4B. Monetary policy statementsProvision

The Bank must include specified policy content in monetary policy statements, and the Cabinet Secretary must lay those statements before the appropriate committee of the National Assembly within the next parliamentary session.

Section 4B. Monetary policy statements Section 4B(1)(a) specify the policies and the means by which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") intends to achieve the policy targets; Section 4B(1)(b) state the reasons for adopting such policies and means; Section 4B(1)(c) contain a review and assessment of the progress of the implementation by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of monetary policy during the period to which the preceding policy statement relates. Section 4B(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall lay every statement submitted under subsection (1) before the appropriate committee of the National Assembly not later than the end of the subsequent session of Parliament after the statement is so submitted. Section 4B(3)(a) every monetary policy statement submitted under subsection (1) ; and Section 4B(3)(a)(i) every monetary policy statement submitted under subsection (1) ; and Section 4B(3)(a)(ii) its monthly balance sheet, to be published in the Gazette ; and Section 4B(3)(b) disseminate key financial data and information on monetary policy to the public. Section 4B(4) In subsection (2) , the expression "appropriate committee" means the committee of the National Assembly appointed to investigate and inquire into matters relating to monetary policy. [Act No. 9 of 1996 , s. 2.]

Section 4BVerify source

§ 4CESTABLISHMENT, CONSTITUTION AND OBJECTS - 4C. Consultations on monetary policyProvision

Requires regular consultations on monetary policy between the Cabinet Secretary responsible for finance and the Central Bank; allows the Cabinet Secretary, after consultation and upon Cabinet resolution in exceptional circumstances, to direct the Bank in writing to adopt a specified monetary policy for up to six months; requires the Bank to implement such a directive and requires the Cabinet Secretary to publish directives in the Gazette.

Section 4C. Consultations on monetary policy Section 4C(1) There shall be regular consultations on monetary policy between the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") and the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 4C(2) Where in exceptional circumstances and after consultation with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") is of the opinion that the monetary policy adopted by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") is inconsistent with the principal object of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, upon resolution by Cabinet, direct the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in writing to adopt such monetary policy as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may specify for a period of six months or for such shorter period as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may specify, and the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall, upon receipt of a directive under this section, adopt and implement the monetary policy so directed notwithstanding any other provision of this Act. Section 4C(3) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall cause every directive issued under subsection (2) to be published in the Gazette . [Act No. 9 of 1996 , s. 2.]

Section 4CVerify source

§ 4DESTABLISHMENT, CONSTITUTION AND OBJECTS - 4D. Monetary Policy Advisory CommitteeProvision

Establishes the Monetary Policy Committee of the Central Bank of Kenya and sets its membership, responsibilities, meeting frequency, reporting obligations, quorum, term lengths, gender minimums for appointed members, and that the Bank will provide staff support.

Section 4D. Monetary Policy Advisory Committee Section 4D(1) There shall be a committee of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , to be known as the Monetary Policy Committee of the Central Bank of Kenya, which shall have the responsibility within the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for formulating monetary policy. Section 4D(2)(a) the Governor, who shall be the Chairperson; Section 4D(2)(b) the Deputy Governors, who shall be deputies to the Chairperson; Section 4D(2)(c) two members appointed by the Governor from among the staff; and Section 4D(2)(d) four other members who have knowledge, experience and expertise in matters relating to finance, banking, and fiscal and monetary policy, appointed by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") ; Section 4D(2)(e) the Principal Secretary to the National Treasury, or his representative, who shall be a non-voting member. Section 4D(2A)(a) one shall be a person with executive responsibility within the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for monetary policy analyses; and Section 4D(2A)(b) one shall be a person with responsibility within the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for monetary policy operations. Section 4D(3) At least two of the members appointed under subsection (2)(d) shall be women. Section 4D(4) Each member appointed under subsection (2)(d) shall hold office for a term of three years and shall be eligible to be appointed for one additional term. Section 4D(5) The Chairperson of the Committee shall convene a meeting of the Committee at least once every two months and shall convene an additional meeting if requested by at least four members in writing. Section 4D(6) At least once every six months the Committee shall submit a report to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") with respect to its activities and the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall lay a copy of each report before the National Assembly. Section 4D(7) The quorum of the Committee shall be five members, one of whom must be the Chairperson or vice-Chairperson. Section 4D(8) The Bank shall provide staff to assist the Committee. [Act No. 8 of 2004 , s. 2, Act No. 9 of 2007 , s. 68, Act No. 8 of 2008 , s. 73.]

Section 4DVerify source

§ 5ESTABLISHMENT, CONSTITUTION AND OBJECTS - 5. Head office and branchesProvision

The Bank must have its head office in Nairobi; in a national emergency it may relocate its head office elsewhere unless the President directs otherwise. The Bank may establish or close branches within Kenya and may open or close branches outside Kenya with prior Cabinet Secretary approval.

Section 5. Head office and branches Section 5(1) The Bank shall have its head office in Nairobi but during a time of national emergency the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may, unless the President otherwise directs, establish its head office temporarily or permanently in any other place within Kenya or elsewhere. Section 5(2) The Bank may establish or close branches in any place within Kenya and may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , open or close branches outside Kenya.

Section 5Verify source

§ 6ESTABLISHMENT, CONSTITUTION AND OBJECTS - 6. AgentsProvision

The Bank may, with the prior approval of the Cabinet Secretary for finance, appoint or cancel agents within Kenya and abroad.

Section 6. Agents Section The Bank may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , appoint, on such terms as it considers appropriate, or cancel the appointment of, agents, both within and outside Kenya.

Section 6Verify source

§ 7ESTABLISHMENT, CONSTITUTION AND OBJECTS - 7. Exemption from taxProvision

The Central Bank of Kenya (the Bank) is not liable to taxation on income or profits, and the Cabinet Secretary responsible for finance may, by order in the Gazette, specify other imposts from which the Bank is not liable.

Section 7. Exemption from tax Section 7(1) The Bank shall not be liable to any taxation imposed by any law in respect of income or profits. Section 7(2) No duty shall be chargeable under the Stamp Duty Act ( Cap. 480 ) in respect of any instrument executed by or on behalf of or in favour of the Bank in any case where, but for this exemption, the Bank would be liable to pay such duty. Section 7(3) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, whether for the purpose of removing any doubt as to the extent of the foregoing provisions of this section or for the purpose of extending the immunities of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , by order published in the Gazette specify any tax, duty, fee, rate, levy, cess or other impost as one to which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not be liable, and the law relating thereto shall have effect accordingly.

Section 7Verify source

Part III

CAPITAL AND RESERVES

§ 8CAPITAL AND RESERVES - 8. Authorized capital of BankProvision

Section 8 sets the Bank's authorised capital at five billion shillings, vests ownership of paid-up capital in the Cabinet Secretary for the National Treasury, allows the Bank to increase paid-up capital from the General Reserve Fund as directed by the Board, and gives the Board the power to determine increases in authorised capital in consultation with the Cabinet Secretary.

Section 8. Authorized capital of Bank Section 8(1) The authorized capital of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be five billion shillings which may be increased by such amount as shall be determined by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") . Section 8(2) The ownership of the entire paid up capital of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be vested in the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") for the National Treasury. Section 8(3) The Bank may, having regard to the amount by which the value of the assets of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") exceeds its liabilities, increase its paid up capital by such amount, payable out of the General Reserve Fund, as the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall direct. Section 8(4) The paid up capital of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not be reduced. [Act No. 13 of 1978 , Sch., Act No. 9 of 1996 , s. 3.]

Section 8Verify source

§ 9CAPITAL AND RESERVES - 9. General Reserve FundProvision

The Bank must establish and maintain a General Reserve Fund and transfer at least ten per centum of net annual profits (or another amount the Board with the Cabinet Secretary may determine) into it at the end of each financial year, after specified deductions.

Section 9. General Reserve Fund Section 9(1) The Bank shall establish and maintain a fund designated as the General Reserve Fund, to which shall be transferred at the end of each financial year at least ten per centum or any other amount as the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , may determine, of the net annual profits of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff benefit funds, and such other contingencies and accounting provisions as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") deems appropriate. Section 9(2) Subject to subsection (1) , and section 51 , the net annual profits of the Bank, calculated in accordance with this section, shall be paid into the Consolidated Fund. Section 9(3) The amount of any net losses of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in any financial year which is in excess of the sums standing to the credit of the general reserve fund of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be charged upon and paid out of the Consolidated Fund without further appropriation than this Act. [Act No. 13 of 1978 , Sch., Act No. 9 of 1996 , s. 4.]

Section 9Verify source

Part IV

MANAGEMENT

§ 10MANAGEMENT - 10.Boardof DirectorsProvision

The Board of Directors determines the policy of the Bank, except for formulation of monetary policy.

Section 10.Boardof Directors Section determining the policy of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , other than the formulation of monetary policy;

Section 10Verify source

§ 11MANAGEMENT - 11. TheBoardof DirectorsSubstitution

Section 11 sets out the composition of the Board, appointment and term lengths (four years, eligible for one reappointment), resignation procedure (takes effect one month after President receives resignation), President’s power to appoint substitutes during prolonged temporary incapacity, and requirement that members be Kenyan citizens with relevant knowledge or experience.

Section 11. TheBoardof Directors Section 11(1)(a) a Chairperson appointed by the President; Section 11(1)(b) a Governor; Section 11(1)(c) the Principal Secretary to the National Treasury or his or her representative, who shall be a non-voting member; Section 11(1)(d) eight other non-executive directors. Section 11(2) The Chairperson and directors appointed under paragraph (d) of subsection (1) shall be appointed by the President with the approval of Parliament and shall hold office for a period of four years but shall be eligible for re-appointment for one further term of four years. Section 11(2A) The Chairperson shall be appointed by the President through a transparent and competitive process and with the approval of Parliament, and shall hold office for a term of four years but shall be eligible for reappointment for one further term. Section 11(3) The members of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall be appointed at different times so that the respective expiry dates of the members’ terms of office shall fall at different times. Section 11(4) A member of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") may resign his office by writing under his hand addressed to the President which resignation shall take effect one month from the date of receipt of the letter of resignation by the President. Section 11(5) If the Chairperson, Governor or a director dies or resigns or otherwise vacates office before the expiry of his term of office, the President shall appoint another person in his place. Section 11(6) Where the Chairperson, the Governor or a director is unable to perform the functions of his office due to any temporary incapacity which is likely to be prolonged, the President may appoint a substitute for that member of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") to act with the full powers of the member until such time as the President determines that his incapacity has ceased. Section 11(7)(a) is a citizen of Kenya; and Section 11(7)(b) is knowledgeable or experienced in monetary, financial, banking and economic matters or other disciplines relevant to the functions of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") .

Section 11Verify source

§ 12MANAGEMENT - 12. Meetings ofBoardProvision

The section sets meeting rules for the Board: the Chairperson must convene and preside at meetings, a quorum requires the Chairperson, the Governor and three directors, decisions are by majority with a casting vote for the chair, vacancies or appointment defects do not invalidate proceedings, and directors must declare and abstain on matters in which they have an interest.

Section 12. Meetings ofBoard Section 12(1) The Chairperson shall convene meetings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") not less than once in every two months, or whenever the business of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") so requires, or whenever he is so requested in writing by at least three directors. Section 12(1A) The Chairperson shall preside at all meetings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") . Section 12(1B) In the absence of the Chairperson at a meeting, the members present shall elect one of the members appointed under paragraph (d) of section 11 (1) to preside at that meeting of the Board. Section 12(1C) The directors appointed under section 11 (1)(d) shall elect one from amongst their number to preside at the meetings of the Board until a Chairperson is appointed. Section 12(2) A quorum for any meeting of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall be the Chairperson, the Governor and three directors. Section 12(3) Decisions of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall be adopted by a majority of the votes of those present at that meeting, and in case of an equality of votes Chairperson or the person presiding at the meeting shall have a second or casting vote. Section 12(4) The validity of any proceedings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall not be affected by any vacancy in the membership of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , or by any defect in the appointment or disqualification of any member which is discovered subsequent to those proceedings. Section 12(5) A director who is interested in any matter involving the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , or in the exercise or proposed exercise by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of a power, shall declare that interest at every meeting of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") at which that matter or the exercise or proposed exercise of the power, is considered by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , and the director shall not be entitled to attend and vote, or be counted in a quorum present, at a meeting at which the matter or the exercise or proposed exercise of the power in which the Director has interest is considered. Section 12(6) Deleted by ActNo. 9 of 1996, s. 6 . [Act No. 9 of 1996 , s. 6, Act No. 4 of 2012 , s. 46, Act No. 36 of 2012 , s. 3.]

Section 12Verify source

§ 12AMANAGEMENT - 12A. Delegation by theBoardProvision

The Board may, by resolution, delegate any of its powers, functions or duties to a committee, a member, or to any officer, employee or agent of the Bank.

Section 12A. Delegation by theBoard Section The Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") may, by resolution either generally or in any particular case, delegate to any committee of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , or to any member thereof, or to any officer, employee or agent of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") the exercise of any of the powers or the performance of any of the functions or duties of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") under this Act or any other written law. [Act No. 9 of 1996 , s. 7.]

Section 12AVerify source

§ 13MANAGEMENT - 13. GovernorProvision

Establishes a Governor of the Central Bank: appointment by the President with National Assembly approval, four-year term (renewable once), chief executive and manager of the Bank, authority to incur budgeted expenditure, representative and signing powers, and power to delegate duties.

Section 13. Governor Section 13(1) There shall be a Governor who shall be appointed by the President though a transparent and competitive process and with the approval of the National Assembly. Section 13(2) The Governor shall hold office for a term of four years, but shall be eligible for re-appointment for one further term of four years. Section 13(3) The Governor shall be the chief executive officer of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and, subject to the general policy decisions of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , shall be responsible for the management of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , including the organization, appointment and dismissal of the staff in accordance with the general terms and conditions of service established by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , and the Governor shall have authority to incur expenditure for the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") within the administrative budget approved by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") . Section 13(4)(a) to represent the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in its relations with other public entities, persons or bodies; Section 13(4)(b) to represent the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , either personally or through counsel, in any legal proceedings to which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") is a party; Section 13(4)(c) to sign individually or jointly with other persons contracts concluded by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , notes and securities issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") reports, balance sheets, and other financial statements, correspondence and other documents of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 13(5) The Governor may delegate any of his powers provided for in this section to other officers of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . [Act No. 4 of 2012 , s. 47, Act No. 36 of 2012 , s. 4, Act No. 14 of 2015 , s. 45.]

Section 13Verify source

§ 13AMANAGEMENT - 13A. Common seal and power of attorneyProvision

The affixing of the Bank's common seal must be authorized by the Governor and another person authorized by the Governor; the Governor may empower any person to execute or authenticate documents on behalf of the Bank under the common seal.

Section 13A. Common seal and power of attorney Section 13A(1) The affixing of the common seal of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be authorized by the signature of the Governor and of some other person or persons authorized by the Governor in that behalf. Section 13A(2) The Governor may, under the common seal of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , empower any person to execute or authenticate on behalf of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") any documents on its behalf. [Act No. 13 of 1978 , Sch.]

Section 13AVerify source

§ 13BMANAGEMENT - 13B. Deputy GovernorProvision

Two Deputy Governors are appointed by the President with Parliament's approval; they serve four-year terms (eligible for one re-appointment), perform functions assigned by the Governor, and a Deputy Governor appointed when the Governor is absent or the office is vacant exercises the Governor's powers during that appointment.

Section 13B. Deputy Governor Section 13B(1) There shall be two Deputy Governors who shall be appointed by the President through a transparent and competitive process and with the approval of Parliament. Section 13B(2) The Deputy Governors shall hold office for a term of four years, but shall be eligible for re-appointment for one further term of four years. Section 13B(3) The Deputy Governors shall perform such functions as the Governor may from time to time assign to them. Section 13B(4)(a) the position of Governor falls vacant in the period before a substantive appointment is made; or Section 13B(4)(b) the Governor is temporarily absent from office. Section 13B(5) A Deputy Governor appointed under subsection (4) shall, during the period of appointment, exercise all the powers and perform all the functions conferred on the Governor under this Act under any other law. [Act No. 10 of 2006 , s. 50, Act No. 4 of 2012 , s. 48.]

Section 13BVerify source

§ 13CMANAGEMENT - 13C. Qualifications for Governor and Deputy GovernorProvision

The Governor and Deputy Governors must be fit and proper persons with recognised professional standing and over ten years' senior management experience in economics, banking, finance, law or other relevant fields.

Section 13C. Qualifications for Governor and Deputy Governor Section 13C(1) The Governor and Deputy Governors shall be fit and proper persons of recognized professional standing and over ten years' experience at senior management level in the field of economics, banking, finance, law or other fields relevant to the functions of the Central Bank. Section 13C(2) For the purposes of this section, "fit and proper" means possessing all the attributes to be taken into account in determining the suitability of a person to be appointed as Governor, including the person's general probity, competence and soundness of judgment for the fulfillment of the responsibilities of office and the diligence with which the person is likely to fulfill those responsibilities. [Act No. 36 of 2012 , s. 5.]

Section 13CVerify source

§ 14MANAGEMENT - 14. General disqualifications for allBoardmembersOffence

Section 14 lists general disqualifications and categories of persons who are ineligible to be Board members.

Section 14. General disqualifications for allBoardmembers Section 14(1)(a) a member of the National Assembly or a member of a local authority established under the Local Government Act ( Cap. 265 ); Section 14(1)(b) a salaried employee of any public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") (except on a secondment basis); Section 14(1)(c) a director, officer, employee, partner in or shareholder of any specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") or specified financial institution ("a financial institution or mortgage finance company within the meaning of the Banking Act which is specified by the Bank for the purposes of this Act;") : Section 14(1)(i) paragraph (b) shall not be applicable to the representative of the National Treasury; and Section 14(1)(ii) the President may in exceptional cases waive any of the above provisions with respect to any Director (other than the Governor or Deputy Governor) if it is in the interests of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and likely to promote the objects of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 4 . Section 14(2)(a) becomes subject to any of the disqualifications described in subsection (1) ; Section 14(2)(b) is adjudged bankrupt or enters into a composition or scheme of arrangement with his creditors; Section 14(2)(c) is convicted of an offence involving dishonesty or fraud or moral turpitude; Section 14(2)(d) is adjudged or otherwise declared to be of unsound mind; Section 14(2)(e) is absent, without the leave of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") from three consecutive meetings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") ; Section 14(2)(f) becomes, for any reason, incapable or incompetent of properly performing the functions of his office: Section 14(3)(a) who hold or have held office as judges of the High Court or the Court of Appeal; or Section 14(3)(a)(i) who hold or have held office as judges of the High Court or the Court of Appeal; or Section 14(3)(a)(ii) who are qualified to be appointed as judges of the High Court under section 61(3) of the Constitution; Section 14(3)(b) the tribunal shall inquire into the matter and report on the facts to the President and recommend to him whether the Governor ought to be removed. Section 14(4) Where the question of removing the Governor has been referred to the tribunal under this section, the President may suspend the Governor from the exercise of the functions of his office and any such suspension may at any time be revoked by the President, and shall in any case cease to have effect if the tribunal recommends to the President that the Governor should not be removed. [Act No. 9 of 1996 , s. 8, Act No. 36 of 2012 , s. 6.]

Section 14Verify source

§ 15MANAGEMENT - 15. Special disqualifications for Governor and Deputy GovernorProvision

The Governor and Deputy Governor must owe allegiance to the Central Bank and must not undertake paid employment, business or professional activity outside their offices, subject to specified academic and advisory exceptions; the President shall terminate appointments for breaches and may exempt activities.

Section 15. Special disqualifications for Governor and Deputy Governor Section 15(1) The Governor and the Deputy Governor shall owe their allegiance entirely to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and shall not engage in any paid employment or business or professional activity outside the duties of their respective offices: Provided that nothing in this subsection shall prevent the Governor or Deputy Governor from accepting or holding any academic office or position in an institution of higher learning or any advisory position or membership in any committee or commission with public responsibility, or from serving in any international financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") of which Kenya is a member or with which Kenya is associated, or any specialized financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") established by the Government. Section 15(2) If the Governor or the Deputy Governor engages in any paid employment or business or professional activity outside the duties of his office contrary to subsection (1) , the President shall terminate his appointment: Provided that in the case of the Governor, the provisions of section 14 shall apply. Section 15(3) The President may specifically exempt any transactions or activities from the restrictions of this section. [Act No. 9 of 1996 , s. 9.]

Section 15Verify source

§ 16MANAGEMENT - 16. RemunerationSubstitution

The Bank must pay the Governor, Deputy Governor and substitutes salaries and allowances as determined by the President, and must not alter those to the detriment of any person during their term; the Bank must pay the directors and substitutes allowances as determined by the President.

Section 16. Remuneration Section 16(1) The Governor, the Deputy Governor, and any substitute appointed under section 11 (4) of this Act shall be paid by the Bank such salaries and allowances as may be determined from time to time by the President, but such salaries and allowances shall not be altered to the detriment of any person during his term of office. Section 16(2) The directors and any substitute appointed under section 11 (4) shall be paid by the Bank such allowances as may from time to time be determined by the President.

Section 16Verify source

§ 17MANAGEMENT - 17. Preservation of secrecyOffence

Certain Bank officers must not disclose information acquired in their duties except when acting for the purpose of performing those duties or exercising their powers.

Section 17. Preservation of secrecy Section 17(1) Except for the purpose of the performance of his duties or the exercise of his powers, the Governor, the Deputy Governor, any Director or any other officer or employee of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not disclose any information which he has acquired in the performance of his duties or the exercise of his powers. Section 17(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable to a fine not exceeding two thousand shillings or to imprisonment for a term not exceeding one year, or to both in addition to any disciplinary action which may be taken by the Board.

Section 17Verify source

§ 18MANAGEMENT - 18. Declaration of interestProvision

The Governor, the Deputy Governor and any Director must declare any interest they have in a specific proposal before the Board.

Section 18. Declaration of interest Section The Governor, the Deputy Governor, and any Director shall declare his or her interest in any specific proposal being considered or to be considered by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") .

Section 18Verify source

Part IX

MISCELLANEOUS PROVISIONS

§ 51MISCELLANEOUS PROVISIONS - 51. Revaluation profits or lossesCommencement

Revaluation gains or losses from changes in currency value are to be taken into account in the Bank's annual profits and losses; the pre-existing Revaluation Account balance shall be repaid from the Bank's net annual profits by instalments determined by the Board in consultation with the Cabinet Secretary.

Section 51. Revaluation profits or losses Section 51(1) Profits or losses which are attributable to any revaluation of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s net assets or liabilities in gold, foreign exchange or foreign securities, made as a result of any change in the value of any currency ("the currency of Kenya or foreign currency;") unit, shall be taken into account in the computation of the annual profits and losses of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") : Provided that the accounts of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall distinguish the profits or losses arising from normal operations of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and those resulting from profits or loss from exchange fluctuations. Section 51(2) The balance outstanding in the Revaluation Account existing immediately before the commencement of this section shall be repaid from the net annual profits of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") by instalments of such amount as the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , may determine. [Act No. 9 of 1996 , s. 22.]

Section 51Verify source

§ 51AMISCELLANEOUS PROVISIONS - 51A. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing mattersProvision

The Central Bank must regulate, supervise and enforce AML/CFT and counter-proliferation financing compliance for reporting institutions subject to the Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A).

Section 51A. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing matters Section 51A(1) Pursuant to sections 2A , 36A , 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), the Central Bank shall regulate, supervise and enforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) apply. Section 51A(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution; Section 51A(2)(b) conduct onsite inspection; Section 51A(2)(c) conduct offsite surveillance; Section 51A(2)(d) undertake consolidated supervision of a reporting institution and its group; Section 51A(2)(e) compel the production of any document or information the Central Bank may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ); Section 51A(2)(f) impose monetary, civil or administrative sanctions for violations related to anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; Section 51A(2)(g) issue regulations, guidelines, directions, rules or instructions for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; Section 51A(2)(h) cooperate and share information for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes; and Section 51A(2)(i) take such action as is necessary to supervise and enforce compliance by reporting institutions in line with the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) and any regulations, guidelines, rules, instruction or direction made or issued thereunder. Section 51A(3) For purposes of this section, “reporting institution” has the meaning assigned to it under section 2 of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ). [Act No. 10 of 2023 , Sch.]

Section 51AVerify source

§ 51BMISCELLANEOUS PROVISIONS - 51B. Penalties for violations relating to money laundering, terrorism financing.Offence

Certain named persons and entities must not violate or fail to comply with the Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A) or related regulations; penalties are specified for legal persons, natural persons, and daily continuing breaches.

Section 51B. Penalties for violations relating to money laundering, terrorism financing. Section 51B(1) No money remittance, foreign exchange bureau ("a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency;") , digital credit provider , director, officer, employer, agent or any other person shall violate or fail to comply with any provision of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), or any regulation, guideline, rule, direction or instruction issued under the said Act or under this section. Section 51B(2)(a) in case of a legal person, to a penalty not exceeding five million shillings; Section 51B(2)(b) in the case of a natural person, to a penalty not exceeding one million shillings; and Section 51B(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.

Section 51BVerify source

§ 51CMISCELLANEOUS PROVISIONS - 51C. Rights and fundamental freedomsProvision

All persons subject to this Act are entitled to enjoy all rights and fundamental freedoms in the Constitution, subject to limits specified in Article 24 of the Constitution, this Act, or any other Act.

Section 51C. Rights and fundamental freedoms Section All persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act. [Act No. 10 of 2023 , Sch.]

Section 51CVerify source

§ 51DMISCELLANEOUS PROVISIONS - 51D. Limitation of right to privacyProvision

The right to privacy under Article 31 is limited under Article 24 to the nature and extent in subsection (2), and any limitation may only apply for purposes connected to proceeds of crime, money laundering and financing of terrorism.

Section 51D. Limitation of right to privacy Section 51D(1) The right to privacy guaranteed under Article 31 of the Constitution is hereby limited under Article 24 of the Constitution only to the nature and extent contemplated under subsection (2) . Section 51D(2)(a) the person’s home or property may, with a warrant be searched; Section 51D(2)(b) the person’s possessions may be seized; Section 51D(2)(c) information relating to that person’s financial, family or private affairs where required may be revealed; or Section 51D(2)(d) the privacy of a person’s communications may be investigated or otherwise interfered with. Section 51D(3) A limitation of a right under subsection (1) shall apply only for the purpose of the prevention, detection, investigation and prosecution of proceeds of crime, money laundering and financing of terrorism. [Act No. 10 of 2023 , Sch.]

Section 51DVerify source

§ 52MISCELLANEOUS PROVISIONS - 52. Prohibited operationsProvision

Prohibits engaging in trade or owning or acquiring any direct interest in commercial, agricultural, industrial or similar undertakings except when done to obtain satisfaction for a debt due to the Bank, and requires such interest to be disposed of at the earliest suitable opportunity.

Section 52. Prohibited operations Section save as expressly authorized by this Act, engage in trade, or own or acquire any direct interest in any commercial, agricultural, industrial or similar undertaking, except in the course of obtaining satisfaction for any debt due to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , and any such interest shall be disposed of at the earliest suitable opportunity;

Section 52Verify source

§ 53MISCELLANEOUS PROVISIONS - 53. Financial yearProvision

The Bank’s financial year must match the Government’s financial year, and the Bank’s accounts must be closed at the end of each financial year.

Section 53. Financial year Section The financial year of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be the same as the Government’s financial year and the accounts of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be closed at the end of each financial year.

Section 53Verify source

§ 54MISCELLANEOUS PROVISIONS - 54. Annual reportsProvision

The Bank must submit to the Cabinet Secretary, within three months after the close of each financial year, a report on its operations for the year together with the balance sheet and profit and loss account certified by auditors appointed by the Bank and approved by the Cabinet Secretary.

Section 54. Annual reports Section Within three months after the close of each financial year the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall submit to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") a report on the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s operations throughout that year, together with the balance sheet and the profit and loss account as certified by auditors appointed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and approved by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") .

Section 54Verify source

§ 55MISCELLANEOUS PROVISIONS - 55. Publication of reports,etc.Provision

The Bank must publish the annual report referred to in section 54 after submitting it to the Cabinet Secretary; the Bank may also issue other publications it considers in the public interest.

Section 55. Publication of reports,etc. Section 55(1) After submission to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall publish the annual report referred to in section 54 . Section 55(2) The Bank may also issue such other publications as it considers to be in the public interest.

Section 55Verify source

§ 56MISCELLANEOUS PROVISIONS - 56. Auditor-GeneralProvision

The Cabinet Secretary responsible for finance may require the Auditor-General to audit the Bank's accounts.

Section 56. Auditor-General Section The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, in addition to the audit carried out under section 54 , if he thinks fit, require the Auditor-General to audit the accounts of the Bank.

Section 56Verify source

§ 56AMISCELLANEOUS PROVISIONS - 56A. General PenaltyOffence

A person convicted of an offence under this Act for which no other penalty is provided is liable to a fine of up to five hundred thousand shillings, or imprisonment for up to three years, or both.

Section 56A. General Penalty Section A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both. [Act No. 8 of 2009 , s. 64.]

Section 56AVerify source

§ 57MISCELLANEOUS PROVISIONS - 57. Regulations bythe BankOffence

Section 57 authorises the Bank to make regulations, issue guidance and prescribe penalties (with specified maximum amounts) for authorised dealers, natural persons and non-deposit-taking credit providers, and to regulate various aspects of non-deposit-taking lending.

Section 57. Regulations bythe Bank Section 57(1) The Bank may make regulations, issue guidelines, circulars and directives for the purpose of giving effect to the provisions of this Act and generally for the better carrying out of the objects of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this Act. Section 57(2) Without prejudice to the generality of subsection (1) , the Bank may, in regulations, prescribe penalties to be paid by authorised dealers who fail or refuse to comply with any guidelines or directions of the Central Bank under this Act, which penalties shall not exceed five hundred thousand shillings in the case of an authorised dealer, or two hundred thousand shillings in the case of a natural person and may prescribe additional penalties, not exceeding ten thousand shillings in each case for each day or part thereof during which such failure or refusal continues. Section 57(3)(a) the licensing requirements for non-deposit-taking credit businesses; Section 57(3)(aa) the procedure for the registration of non-deposit-taking credit providers; Section 57(3)(b) permissible and prohibited activities; Section 57(3)(c) anti-money laundering and measures for countering financing terrorism; Section 57(3)(d) credit information sharing; Section 57(3)(e) data protection; Section 57(3)(f) consumer protection; Section 57(3)(g) reporting requirements for non-deposit-taking credit providers; Section 57(3)(h) offences and penalties; Section 57(3)(i) dispute resolution mechanisms; and Section 57(3)(j) such other measures necessary for regulation of non-deposit-taking lending. Section 57(4) Without prejudice to the generality of subsection (3)(h) , the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may, in regulations, prescribe penalties to be paid by non-deposit-taking credit providers who fail or refuse to comply with the provisions of this Act, the regulations made thereunder, guidelines, Code of Conduct and directives issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") which penalties shall not exceed two million shillings, or three times the gross amount of the monetary gain made or loss avoided by the failure or refusal to comply, whichever is higher; and may prescribe additional penalties, not exceeding ten thousand shillings in each case for each day or part thereof during which such failure or refusal continues: Provided that the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall on a case-by-case basis assess the facts of each case and determine the reasonable penalty to impose, taking into account such factors as may be prescribed or as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may consider necessary.

Section 57Verify source

Part V

CURRENCY

§ 19CURRENCY - 19. Currency of KenyaProvision

Declares the Kenya shilling as the unit of currency, divided into one hundred cents, and states that twenty shillings equal one Kenya pound.

Section 19. Currency of Kenya Section 19(1) The unit of currency of Kenya ("bank notes and coins issued by the Bank under(1) and any right to receive such bank notes or coins in respect of any credit or balance at a bank or financial institution located within or outside Kenya;") shall be the Kenya shilling ("a Kenya shilling as provided inof this Act, or a shilling issued by the East African Currency Board for so long as it is legal tender in Kenya in accordance with this Act;") , which shall be divided into one hundred cents. Section 19(2) Twenty shillings shall equal one Kenya pound.

Section 19Verify source

§ 20CURRENCY - 20. External value of theshillingProvision

The external value of the Kenya shilling shall be determined by the market.

Section 20. External value of theshilling Section The external value of the Kenya shilling ("a Kenya shilling as provided inof this Act, or a shilling issued by the East African Currency Board for so long as it is legal tender in Kenya in accordance with this Act;") shall be determined by the market. [Act No. 13 of 1978 , Sch., Act No. 20 of 1989 , Sch., Act No. 9 of 1996 , s. 10.]

Section 20Verify source

§ 21CURRENCY - 21. Use of KenyashillingProvision

Monetary obligations or transactions made in Kenya must be expressed, recorded and settled in Kenya currency unless law or agreement provides otherwise.

Section 21. Use of Kenyashilling Section All monetary obligations or transactions entered into or made in Kenya shall be deemed to be expressed and recorded, and shall be settled, in Kenya currency ("the currency of Kenya or foreign currency;") unless otherwise provided for by law or agreed upon between the parties.

Section 21Verify source

§ 22CURRENCY - 22. Issue of notes and coins, legal tender, and withdrawalProvision

The Bank has the sole right to issue notes and coins in Kenya; the Bank must determine the characteristics of those notes and coins in consultation with the Cabinet Secretary and notify them in the Gazette and other public media. The Bank may specify, by notice, a period during which withdrawn notes or coins that have ceased to be legal tender may still be exchanged at its head office.

Section 22. Issue of notes and coins, legal tender, and withdrawal Section 22(1) The Bank shall have the sole right to issue notes and coins in Kenya and, subject to subsection (4), only those notes and coins shall be legal tender in Kenya: Provided that coins of a denomination of fifty cents shall be legal tender only for payments up to twenty shillings, and coins of a denomination of less than fifty cents shall be legal tender only for payments up to five shillings. Section 22(2) The denominations, inscriptions, forms, material and other characteristics of the notes and coins issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be determined by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , and shall be notified in the Gazette and in other media of public information likely to bring them to the attention of the public. Section 22(3)(a) a notice published in the Gazette , and in such other manner as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") considers likely to bring that notice to the attention of the public, shall specify the issues, and the denominations forming part of the issues, of notes or coins that are to be withdrawn, the places where those notes or coins may be taken for exchange, and the date on which those notes or coins shall cease to be legal tender; Section 22(3)(b) the notice given under the foregoing paragraph may provide that, after such period as may be specified in the notice, the notes or coins to which the notice applies shall only be exchanged at the head office of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; Section 22(3)(c) the notes or coins specified in a notice given under paragraph (a) shall be exchanged at their face value for legal tender at the places and for the periods (which shall be of reasonable duration) specified in relation to those places in the notice, and shall cease to be legal tender on the date specified in the notice; Section 22(3)(d) the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may, by notice published in the same manner as notice given under paragraph (a) , specify a period during which notes or coins which have ceased to be legal tender may nevertheless be exchanged at the head office of the bank, and after which those notes or coins shall no longer be exchanged.

Section 22Verify source

§ 24CURRENCY - 24. Exchange of mutilated notes and coinsProvision

The Bank is not required to exchange mutilated, defaced, soiled or otherwise defective notes or coins; it may, as a matter of grace and at its absolute discretion, exchange such notes or coins.

Section 24. Exchange of mutilated notes and coins Section The Bank shall not be obliged to exchange any note or coin which is mutilated, defaced, soiled or otherwise defective, and the conditions subject to which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may as a matter of grace exchange any such note or coin shall be within the absolute discretion of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") .

Section 24Verify source

§ 25CURRENCY - 25. Bills of exchange, promissory notes,etcOffence

The Cabinet Secretary may, if the Central Bank so recommends, make regulations (published in the Gazette) to prohibit anyone other than the Central Bank from issuing bills of exchange, promissory notes or similar instruments payable to bearer on demand, and such regulations may impose penalties including a fine not exceeding ten thousand shillings or imprisonment not exceeding two years.

Section 25. Bills of exchange, promissory notes,etc Section 25(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, if the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") so recommends, by regulations published in the Gazette prohibit the issue by any person other than the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of any bill of exchange, promissory note or similar instrument for the payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") of money to the bearer on demand, and any such regulations may make different provision for different cases or classes of case, and may impose penalties for any offence under the regulations of a fine not exceeding ten thousand shillings or of a term of imprisonment not exceeding two years, or of both such fine and imprisonment. Section 25(2) Subject to any regulations made under this section the issue of any such bill, note or instrument referred to in subsection (1) shall not be deemed to contravene the sole right of the Bank to issue notes in Kenya. [Act No. 9 of 1996 , s. 12.]

Section 25Verify source

Part VI

EXTERNAL RELATIONS

§ 26EXTERNAL RELATIONS - 26. Reserve of external assetsProvision

Section 26 defines components of the reserve of external assets and directs the Bank to determine eligible convertible foreign exchange and securities; the Bank may also include other liquid external assets or drawing facilities after IMF consultation and Cabinet Secretary approval.

Section 26. Reserve of external assets Section 26(1)(a) gold; Section 26(1)(b) demand or time deposits with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents outside Kenya; Section 26(1)(b)(i) demand or time deposits with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents outside Kenya; Section 26(1)(b)(ii) documents and instruments customarily used for the making of payments or transfers in international transactions; Section 26(1)(b)(iii) notes or coins; Section 26(1)(c) convertible and marketable securities of, or guaranteed by, foreign governments or international financial institutions: Section 26(2) The Bank shall from time to time determine the type and form of convertible foreign exchange and the kinds of securities which may be held in the reserve of external assets pursuant to subsection (1) . Section 26(3) The Bank may include in its reserve of external assets any liquid external asset not included in subsection (1) , or any readily available international drawing facility, which the Bank, after consultation with the International Monetary Fund and with the approval of the Cabinet Secretary, considers suitable for inclusion in the reserve. [Act No. 8 of 2009 , s. 62.]

Section 26Verify source

§ 27EXTERNAL RELATIONS - 27. Dealings in gold and foreign exchangeProvision

The Bank may deal in gold and foreign exchange and may hold and invest foreign currency balances; the buying and selling rates used must comply with international agreements.

Section 27. Dealings in gold and foreign exchange Section 27(1) The Bank may buy, sell, import, export, hold or otherwise deal in gold or foreign exchange under such terms and conditions as it shall determine: Provided that the buying and selling rates involved in such transactions shall be in accordance with international agreements to which Kenya is a party, or with which Kenya is associated. Section 27(2) The Bank may hold balances, denominated in foreign currencies, with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents abroad and, in its discretion, may invest such balances in marketable foreign securities denominated in convertible currencies. [Act No. 10 of 2006 , s. 51.]

Section 27Verify source

§ 28EXTERNAL RELATIONS - 28. Institutions with which Bank may deal in foreign exchangeProvision

The Bank may deal in foreign exchange with specified institutions.

Section 28. Institutions with which Bank may deal in foreign exchange Section authorized dealers;

Section 28Verify source

§ 29EXTERNAL RELATIONS - 29. Relations with foreign central banks, foreign banks and foreign financial institutionsProvision

The Bank may open accounts for, accept deposits from, collect money for, and act as banker to foreign central banks, foreign banks and foreign financial institutions.

Section 29. Relations with foreign central banks, foreign banks and foreign financial institutions Section The Bank may open accounts for and accept deposits from, collect money and other monetary claims for and on account of, foreign central banks, foreign banks and foreign financial institutions, and may generally act as banker to those banks or institutions.

Section 29Verify source

§ 30EXTERNAL RELATIONS - 30.[Repealed by ActNo. 10 of 1995, s. 5]Repeal

Section 30 was repealed.

Section 30.[Repealed by ActNo. 10 of 1995, s. 5]

Section 30Verify source

§ 31EXTERNAL RELATIONS - 31.[Repealed by ActNo. 8 of 2008, s. 74]Repeal

Section 31 has been repealed.

Section 31.[Repealed by ActNo. 8 of 2008, s. 74]

Section 31Verify source

§ 32EXTERNAL RELATIONS - 32. Fiscal agent for Government’s transactions with international financial institutionsProvision

The Bank must act as the fiscal agent for all Government transactions with international financial institutions of which Kenya is a member or with which Kenya is associated.

Section 32. Fiscal agent for Government’s transactions with international financial institutions Section The Bank shall be the fiscal agent for all of the Government’s transactions with international financial institutions of which Kenya is a member or with which Kenya is associated.

Section 32Verify source

§ 33EXTERNAL RELATIONS - 33. DepositoryProvision

The Bank must act as depository for Kenya currency or foreign currency holdings owned by international financial institutions associated with Kenya.

Section 33. Depository Section The Bank shall act as depository for Kenya currency ("the currency of Kenya or foreign currency;") holdings owned by international financial institutions of which Kenya is a member or with which Kenya is associated.

Section 33Verify source

Part VIA

REGULATIONS OF FOREIGN EXCHANGE DEALINGS

§ 33AREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33A. Authorized dealersOffence

No person in Kenya may transact foreign exchange business except an authorized dealer; contravention is an offence punishable by a fine not exceeding 500,000 shillings or imprisonment for up to three years or both; the Bank may permit specified persons to transact without a licence subject to conditions it imposes.

Section 33A. Authorized dealers Section 33A(1) Subject to subsection (3) , no person shall, in Kenya, transact foreign exchange business except an authorized dealer. Section 33A(2) A person who contravenes the provisions of subsection (1) commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both. Section 33A(3) Notwithstanding the provisions of subsection (1) , the Bank may permit such person or class of persons as it may specify, to transact foreign exchange business without a licence, subject to such conditions as it may impose.

Section 33AVerify source

§ 33BREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33B. Licensing of authorized dealersSubstitution

Persons proposing to transact foreign exchange business must apply to the Bank for a licence before commencing; applications must be in the prescribed form and include the prescribed fee; the Bank may require information, grant licences subject to fee and conditions, and vary licence conditions.

Section 33B. Licensing of authorized dealers Section 33B(1) A person proposing to transact foreign exchange business shall, before commencing such business, apply to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for a licence. Section 33B(2) An application under this section shall be made in the prescribed form and shall be forwarded to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") together with the prescribed fee. Section 33B(3) In considering an application for a licence, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may require to be satisfied as to the financial condition and history of the applicant, the character of its management, the adequacy of its capital structure and the convenience and needs of the area to be served and the public interest which will be served by granting of the licence. Section 33B(4) The Bank may, subject to the payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") of the prescribed fee and to such conditions as it may consider necessary, grant a licence to the applicant. Section 33B(5) Where a licence has been granted under this section, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may add, vary, or substitute any conditions attached thereto. Section 33B(6) A licence issued under this section shall, unless earlier revoked, expire on the 31st December next following the date of issue: Provided that where an application for renewal is made under section 33C , the licence shall be deemed to continue in force until the application for renewal is determined. [Act No. 10 of 1995 , s. 6, Act No. 4 of 2012 , s. 49.]

Section 33BVerify source

§ 33CREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33C. Renewal of licenceCommencement

Authorized dealers who fail to commence business within six months must, if still intending to transact foreign exchange business in Kenya, apply for a licence as if the first licence had never been granted; the application must be in the prescribed form, forwarded to the Bank with the prescribed fee, and lodged with the Bank at least two months before licence expiry.

Section 33C. Renewal of licence Section 33C(1) A licence issued under section 33B may on expiry be renewed for a further period of twelve months: Provided that where an authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") fails to commence business in Kenya within six months of the grant of a licence, the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") shall, if still intending to transact foreign exchange business in Kenya, apply for a licence as though the first licence had never been granted. Section 33C(2)(a) be made in the prescribed form and forwarded to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") together with the prescribed fee; Section 33C(2)(b) be lodged with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") at least two months prior to the expiry of the licence. Section 33C(3) An application for renewal of a licence shall be considered in accordance with the provisions of section 33B . [Act No. 10 of 1995 , s. 6.]

Section 33CVerify source

§ 33DREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33D. Revocation or suspension of licenceProvision

Before revoking or suspending a licence the Bank must give an authorized dealer at least fourteen days' written notice and must consider any written representations from the dealer within that period.

Section 33D. Revocation or suspension of licence Section 33D(1)(a) ceases to carry on business in Kenya or goes into liquidation or is wound up, or is otherwise dissolved; or Section 33D(1)(b) fails to comply with the provisions of this Act or any condition attached to a licence. Section 33D(2) Before revoking or suspending a licence under this section, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall give an authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") not less than fourteen days notice in writing and shall consider any representations made to it in writing by the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") within that period. [Act No. 10 of 1995 , s. 6.]

Section 33DVerify source

§ 33EREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33E. Duties of authorized dealersProvision

Authorized dealers must keep books, accounts and records specified by the Bank and must give them to the Bank when and how the Bank specifies.

Section 33E. Duties of authorized dealers Section maintain such books, accounts, records or other documents as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may specify, and shall furnish the same to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") at such time and in such manner as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may specify;

Section 33EVerify source

§ 33FREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33F. Inspection of dealersOffence

The Bank may authorize inspections of authorized dealers and their books, accounts and records; the dealer and its officers/employees must produce requested documents within a period specified in writing; inspectors may copy documents; information from inspections is confidential; the Central Bank may publish or share information with other authorities subject to confidentiality and consent rules; no person shall disclose information obtained through their duties except as provided.

Section 33F. Inspection of dealers Section 33F(1) The Bank may, at any time and from time to time cause an inspection to be made by any person authorized by it in writing, of any authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") and of its books, accounts and records. Section 33F(2) Subject to subsection (4) , when an inspection is made under subsection (1) , the authorized dealer concerned and every officer or employee thereof shall produce and made available to the person making the inspection, all books, accounts, records and other documents of the authorized dealer and such correspondence, statement and information relating to the authorized dealer, its business and the conduct thereof as the person making the inspection may require, within such period as he may specify in writing. Section 33F(3) Any failure to produce any books, accounts, records, documents, correspondence, statement or information within the period specified in the relevant direction shall constitute an offence under this Part. Section 33F(4)(a) any books, accounts, records and other documents required to be produced under this section shall not, in the course of the inspection, be removed from the premises of the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") or other premises at which they are produced; Section 33F(4)(b) the person making the inspection may make copies of any books, accounts and other documents required for the purposes of his report; Section 33F(4)(c) all information obtained in the course of the inspection shall be treated as confidential and used solely for the purposes of this Part. Section 33F(5)(a) any breach or failure to observe the requirements of this Part and any orders or directions made thereunder; Section 33F(5)(b) any irregularity in the manner of conduct of the business of the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") inspected; Section 33F(5)(c) any apparent mismanagement of business or lack of management skills in that authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") ; Section 33F(5)(d) any other matter revealed or discovered in the course of the inspection warranting, in the opinion of the person making the inspection, remedial action or further investigation. Section 33F(6) The Central Bank may publish in whole or in part, at such times and in such manner as it deems fit, any information furnished to it under this Part: Provided that the information so furnished shall not be published if it would disclose the financial affairs of any person, unless the consent, in writing, of that person has first been given. Section 33F(7) Except as provided in the Act, no person shall disclose or publish any information which comes into his possession as a result of the performance of his duties or responsibilities under this Act. Section 33F(8) Notwithstanding the provisions of this section, the Central Bank may disclose any information referred to in subsection (7) to any monetary authority, financial regulatory authority, fiscal or tax agency, or fraud investigation agency within or outside Kenya, where such information is reasonably required for the proper discharge of the functions of the Central Bank or the requesting authority, financial regulatory authority, fiscal or tax agency or fraud investigation agency: Provided that the sharing of information with any authority or agency outside Kenya shall be on reciprocal basis. [Act No. 10 of 1995 , s. 6, Act No. 10 of 2010 , s. 72.]

Section 33FVerify source

§ 33GREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33G. Powers of Bank to advise and direct dealersProvision

The Bank may advise, recommend, issue directions to, and appoint advisers for authorized dealers; authorized dealers must comply with directions and, if required, show evidence of compliance.

Section 33G. Powers of Bank to advise and direct dealers Section 33G(1)(a) give advice and make recommendations to the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") with regard to the conduct of business generally; Section 33G(1)(b) issue directions regarding measures to be taken to improve the management business methods of or the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") , or to secure compliance with the requirements of this Part or any other written law; Section 33G(1)(c) appoint a person suitably qualified and competent in the opinion of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , to advise and assist the authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") generally, or for the purposes of implementing any directions issued under paragraph (b) , and the advice of a person so appointed shall have the same force and effect as a direction issued under paragraph (b) and shall be deemed to be a direction of the Bank under this section. Section 33G(2) No direction shall be issued under paragraph (b) or (c) of subsection (1) unless the Bank has given the authorized dealer an opportunity to present its views. Section 33G(3) An authorized dealer ("an authorized bank,authorized bureau, authorized mortgaged finance company, an authorized money remittance provider or an authorized microfinance bank licensed by the Bank under;") shall, on receipt of any direction under this section, comply with the direction within such period as may be specified in the direction, and it so required, produce evidence to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") that it has done so. [Act No. 10 of 1995 , s. 6.]

Section 33GVerify source

§ 33HREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33H. Regulation of payments between residents and non-residentsOffence

Payments between residents and non-residents must be effected through an authorized Bank or an authorized microfinance bank; contravention is an offence punishable by a fine not exceeding five hundred thousand shillings or imprisonment for up to three years, or both.

Section 33H. Regulation of payments between residents and non-residents Section 33H(1)(a) in Kenya, to or for the credit of a person outside Kenya; or Section 33H(1)(b) outside Kenya, to or for the credit of a person in Kenya; or Section 33H(1)(c) in Kenya (other than a payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") for a current transaction) between a resident and non-resident , shall be effected through an authorized Bank or an authorized microfinance bank ("a microfinance bank licensed by the Bank under;") . Section 33H(2) A person who contravenes any of the provisions of this section commits an offence and shall be liable on conviction to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding three years, or to both. [Act No. 10 of 1995 , s. 6, Act No. 41 of 2013 , Sch.]

Section 33HVerify source

§ 33IREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33I. Imposition of restrictions to meet treaty obligationsProvision

The Bank may, in consultation with the Cabinet Secretary, impose restrictions on transfers of currency to enable the Government of Kenya to meet obligations under international treaties.

Section 33I. Imposition of restrictions to meet treaty obligations Section The Bank may, in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , impose restrictions on payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") for the purposes of enabling the Government of Kenya meet its obligations under any international treaty. [Act No. 10 of 1995 , s. 6.]

Section 33IVerify source

§ 33JREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33J. Permissions bythe BankProvision

The Bank may grant permissions, either general or special.

Section 33J. Permissions bythe Bank Section either general or special;

Section 33JVerify source

§ 33KREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33K. Instructions or directionsOffence

The Bank may issue instructions or directions to authorized dealers, subject to section 33G; failure to comply is an offence punishable by a fine not exceeding five hundred thousand shillings, or imprisonment for a term not exceeding three years, or both.

Section 33K. Instructions or directions Section 33K(1) Subject to section 33G , the Bank may issue such instructions or directions to authorized dealers as it may consider necessary. Section 33K(2)(a) be either general or special; Section 33K(2)(b) be revoked or varied by subsequent instruction or direction; Section 33K(2)(c) be given to such persons and in such manner as is in the opinion of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") appropriate. Section 33K(3) A person who fails to comply with instruction or direction issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this section commits an offence and is liable on conviction to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both. [Act No. 10 of 1995 , s. 6.]

Section 33KVerify source

§ 33LREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33L. General penalty under PartOffence

A person convicted of an offence under this Part (for which no other penalty is provided) is liable to a fine of up to five hundred thousand shillings, or to imprisonment for up to three years, or to both.

Section 33L. General penalty under Part Section A person convicted of an offence under this Part for which no other penalty is provided shall liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both. [Act No. 10 of 1995 , s. 6, Act No. 8 of 2009 , s. 63.]

Section 33LVerify source

§ 33MREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33M. Protection from liabilityProvision

The Central Bank of Kenya, its officers, employees and persons appointed by the Bank are protected from liability for acts or omissions done in good faith while executing their duties.

Section 33M. Protection from liability Section Neither the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") nor any officer or employee thereof nor any other person appointed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under the provisions of this Part shall be liable in respect of any act or omission done in good faith by such officer, employee or other person in the execution of the duties undertaken by him. [Act No. 10 of 1995 , s. 6.]

Section 33MVerify source

§ 33NREGULATIONS OF FOREIGN EXCHANGE DEALINGS - 33N.[Repealed by ActNo. 9 of 1996, s. 13.]Repeal

Section 33N was repealed by ActNo. 9 of 1996, s. 13.

Section 33N.[Repealed by ActNo. 9 of 1996, s. 13.]

Section 33NVerify source

Part VIB

MORTGAGE FINANCING BUSINESS

§ 33PMORTGAGE FINANCING BUSINESS - 33P. LicensingOffence

Persons must not engage in mortgage refinance business unless licensed by the Bank; an application must be made to the Bank in the prescribed form with the prescribed fee; contravening subsection (1) is an offence.

Section 33P. Licensing Section 33P(1) A person shall not engage in mortgage refinance business ("the business of providing long term financing to primary mortgage lenders for housing finance and any other activity that the Bank may from time to time prescribe;") unless that person has been licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 33P(2) An application for a licence under in subsection (1) shall be made to the Bank in the prescribed form and accompanied by the prescribed fee. Section 33P(3) A person who contravenes the provision of subsection (1) commits an offence. [Act No. 10 of 2018 , s. 68.]

Section 33PVerify source

§ 33QMORTGAGE FINANCING BUSINESS - 33Q. Powers ofthe BankProvision

The Bank has the power to license mortgage refinance companies.

Section 33Q. Powers ofthe Bank Section to license mortgage refinance companies;

Section 33QVerify source

Part VIC

REGULATION OF NON-DEPOSIT TAKING CREDIT PROVIDERS

§ 33RREGULATION OF NON-DEPOSIT TAKING CREDIT PROVIDERS - 33R. Regulation of non-deposit taking credit providers.Provision

Section lists functions including registration, licensing, approval of channels, pricing parameters, supervision and prescribing a Code of Conduct for non-deposit-taking credit providers.

Section 33R. Regulation of non-deposit taking credit providers. Section 33R(1)(a) register, license and regulate non-deposit-taking credit providers which are not regulated under any other written law; Section 33R(1)(b) approve channels through which non-deposit-taking credit business may be conducted; Section 33R(1)(c) determine parameters for pricing of credit; Section 33R(1)(d) supervise non-deposit taking credit providers in such manner as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may prescribe; and Section 33R(1)(e) prescribe an enforceable Code of Conduct binding all non-deposit-taking credit providers in their conduct of business.

Section 33RVerify source

§ 33SREGULATION OF NON-DEPOSIT TAKING CREDIT PROVIDERS - 33S. LicensingOffence

Persons must not carry on non-deposit-taking credit business unless licensed by the Central Bank; non-deposit-taking credit providers must provide borrower-accepted terms; the Bank may grant, reject, suspend or revoke licences; applicants may apply to renew at least three months before expiry; contravention is an offence punishable by up to three years' imprisonment or a fine not exceeding five million shillings.

Section 33S. Licensing Section 33S(1) A person shall not carry on any non-deposit-taking credit business unless that person has been licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this Act or is permitted to do so under any other written law. Section 33S(2) An application for a license under subsection (1) shall be made to the Bank in such form and shall be accompanied by such information and fee as may be prescribed. Section 33S(3)(a) a copy of the certificate of incorporation under the Companies Act; Section 33S(3)(b) a certified copy of the applicant’s memorandum and articles of association; Section 33S(3)(c) a notification of the company’s registered address; Section 33S(3)(d) a certificate issued pursuant to section 19 of the Data Protection Act ( Cap. 411C ); Section 33S(3)(e) a statement as to compliance with the provisions of Part VII of the Consumer Protection Act ( Cap. 501 ); and Section 33S(3)(f) such other documents as may be prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 33S(4) Without prejudice to subsection (3)(e) , a non-deposit-taking credit provider shall provide terms and conditions applicable to the credit which shall accepted by the borrower. Section 33S(5) The Bank may grant or reject an application for a licence by written notice addressed to the applicant within sixty days from the date of receipt of an application. Section 33S(6) A licence granted under this section shall remain valid unless suspended or revoked by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in accordance with this Act, but upon expiry of the prescribed period may be renewed. Section 33S(7)(a) the licensee does not meet the conditions prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; Section 33S(7)(b) the licensee is in breach of subsection (3) or the conditions of the Data Protection Act ( Cap. 411C ) or the Consumer Protection Act ( Cap. 501 ); Section 33S(7)(c) the licensee is found to have given false information during the application; Section 33S(7)(d) the licensee goes into liquidation or an order for winding up is issued; Section 33S(7)(e) the carries out activities outside the scope of the licensed activities; Section 33S(7)(f) the licensee is in breach of any of the provisions of this Act and the regulations made thereto relating to non-deposit-taking credit business; Section 33S(7)(g) the licensee fails to conclusively address a customer’s complaint within the time and in the manner prescribed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this Act or as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may direct; Section 33S(7)(h) the licensee fails to comply with a directive of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; or Section 33S(7)(i) the licensee imposes unreasonable or unjustifiable charges on the loan. Section 33S(8) Without prejudice to subsection (6) , an applicant may apply for renewal of the licence at least three months before expiry of the licence. Section 33S(9)(a) before the thirtieth day of March in each year, the names and addresses of all licenced non-deposit-taking credit providers under this section; Section 33S(9)(b) within thirty days of suspension or revocation of a license, the name and address of the non-deposit-taking credit providers whose licences have been suspended or revoked. Section 33S(10) A person who contravenes the provisions of this section commits an offence and shall be liable upon conviction to imprisonment for a term not exceeding three years or to a fine not exceeding five million shillings or to both. [Act No. 15 of 2021 , s. 4, Act No. 20 of 2024 , s. 8.]

Section 33SVerify source

§ 33TREGULATION OF NON-DEPOSIT TAKING CREDIT PROVIDERS - 33T. ConsultationProvision

Consultation Section the Office of the Data Protection Commissioner; and

Section 33T. Consultation Section the Office of the Data Protection Commissioner; and

Section 33TVerify source

§ 33UREGULATION OF NON-DEPOSIT TAKING CREDIT PROVIDERS - 33U. Disclosure of credit informationProvision

A digital lender must disclose any positive or negative information of its customers to licensed credit reference bureaus when that information is reasonably required for the bureaus' and the digital lenders' functions.

Section 33U. Disclosure of credit information Section Notwithstanding the provisions of this section, a digital lender shall disclose any positive or negative information of its customers to the licensed credit reference bureaus, where such information is reasonably required for the discharge of the functions of the digital lenders and the licensed credit reference bureaus. [Act No. 15 of 2021 , s. 4.]

Section 33UVerify source

Part VID

CREDIT GUARANTEE BUSINESS

§ 33VCREDIT GUARANTEE BUSINESS - 33V. Interpretation of PartInterpretation

Defines “credit guarantee business” and “credit guarantee company.”

Section 33V. Interpretation of Part Section In this Part, unless the context otherwise requires— “credit guarantee business” means the business of providing a guarantee to a lender through absorption of all or a portion of the lender’s risk on a credit facility made to a borrower in case of default; “credit guarantee company” means a company limited by shares incorporated or registered under the Companies Act ( Cap. 486 ) and licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to carry on credit guarantee business .

Section 33VVerify source

§ 33WCREDIT GUARANTEE BUSINESS - 33W. RegistrationOffence

Section 33W. Registration Section 33W(1) A person who intends to carry on credit guarantee business in Kenya shall apply to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for registration. Section 33W(2) An application under subsection (1) shall be in the prescribed form and accompanied by the prescribed fee. Section 33W(3) The Bank shall prescribe, in Regulations, the requirements and procedure for registration under subsection (1) . Section 33W(4) The Bank shall issue a successful applicant with a certificate of registration in the prescribed form. Section 33W(5) A person who carries on credit guarantee business without being registered by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") commits an offence and is liable, on conviction to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both. Section 33W(6) Where the offence contemplated in subsection (5) is committed by a body corporate, that body corporate shall be liable, on conviction, to a fine not exceeding ten million shillings.

Section 33WVerify source

§ 33XCREDIT GUARANTEE BUSINESS - 33X. LicensingOffence

Persons registered under section 33W who intend to carry on credit guarantee business in Kenya must apply to the Bank for a licence in the prescribed form and pay the prescribed fee; licensed credit guarantee companies must pay an annual licence fee; carrying on the business without a licence is an offence with fines and imprisonment.

Section 33X. Licensing Section 33X(1) A person registered under section 33W who intends to carry on credit guarantee business in Kenya shall apply to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for a licence in the prescribed form and on payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") of the prescribed fee. Section 33X(2)(a) is a credit guarantee provider that is owned by a foreign government and has entered into an agreement with the Government for the purposes of supporting access to financial services in Kenya; Section 33X(2)(b) is a credit guarantee provider that is owned or supported by international financial institutions and has entered into an agreement with the Government to provide credit guarantee services to targeted groups, sectors or regions for a specified period of time; Section 33X(2)(c) is a credit guarantee company registered outside Kenya and has entered into a partnership with a financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") in Kenya to provide credit guarantee services; or Section 33X(2)(d) is a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") providing credit guarantees as part of its regular business regulated by the Banking Act. Section 33X(3) Each licenced credit guarantee company shall pay an annual licence fee. Section 33X(4) A person who carries on credit guarantee business without a licence commits an offence and is liable, on conviction to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both. Section 33X(5) Where the offence contemplated in subsection (4) is committed by a body corporate, that body corporate shall be liable, on conviction, to a fine not exceeding ten million shillings. Section 33X(6)(a) in the case of natural person, be liable to a fine not exceeding one million shillings, or to imprisonment for a term not exceeding three years, or to both; and Section 33X(6)(b) in the case of body corporate, to a fine not exceeding ten million shillings.

Section 33XVerify source

§ 33YCREDIT GUARANTEE BUSINESS - 33Y. Powers ofthe BankProvision

The Bank has the power to issue, suspend or revoke licences to carry on credit guarantee business.

Section 33Y. Powers ofthe Bank Section to issue, suspend or revoke licenses to carry on credit guarantee business ;

Section 33YVerify source

Part VII

RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS

§ 34RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 34. Banker to institutionsProvision

The Bank must open accounts for institutions, accept deposits, collect monetary claims on their behalf, and act as banker to institutions; the Bank may provide additional services, including clearing facilities for institutions operating in Kenya.

Section 34. Banker to institutions Section 34(1) The Bank shall open accounts for and accept deposits from, collect monetary claims for and on account of institutions and generally act as banker to institutions. Section 34(2) The Bank may provide any additional services or facilities that it considers desirable including facilities for clearing financial instruments to institutions operating in Kenya. Section 34(3)(a) a specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") ; Section 34(3)(b) a specified financial institution ("a financial institution or mortgage finance company within the meaning of the Banking Act which is specified by the Bank for the purposes of this Act;") ; Section 34(3)(c) a specified microfinance bank ("a licensed microfinance bank within the meaning of the Microfinance Act () which is specified by the Bank for the purposes of this Act;") ; Section 34(3)(d) any other person or body of persons which the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, on the recommendation of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , and by notice in the Gazette , prescribe.

Section 34Verify source

§ 35RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 35.[Repealed by ActNo. 9 of 1996, s. 14.]Repeal

Section 35 is repealed.

Section 35.[Repealed by ActNo. 9 of 1996, s. 14.]

Section 35Verify source

§ 36RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 36. LoansProvision

Allows the Central Bank to lend short-term (up to six months) to specified banks and specified microfinance banks that pledge treasury bills or other government securities; restricts other forms of direct or indirect credit to those institutions; empowers the Bank to set terms and interest/return rates and requires it to publish the lowest rate, called the central bank rate.

Section 36. Loans Section 36(1) The Bank may grant loans or advances for fixed periods not exceeding six months to specified banks and specified microfinance banks which pledge treasury bills or other Government securities specified by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 36(2) Except as provided in this section, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not extend credit directly, or indirectly to specified banks or specified microfinance banks. Section 36(3) The Bank may determine the general terms and conditions under which it extends credit to specified banks and specified microfinance banks, and in particular, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall determine and announce the rates of interest or return it shall charge for granting loans or advances to specified banks and specified microfinance banks in accordance with this section, and may determine different rates of interest or return for different classes of transactions or maturities. Section 36(4) The Bank shall publish the lowest rate of interest it charges on loans to banks and microfinance banks, and that rate shall be known as the central bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") rate. [Act No. 9 of 1996 , s. 15, Act No. 8 of 2004 , s. 3, Act No. 10 of 2010 , s. 73, Act No. 41 of 2013 , Sch.]

Section 36Verify source

§ 36ARELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 36A. Publication and sharing of informationProvision

A bank must disclose customer positive or negative information to licensed credit reference bureaus when that information is reasonably required for the bureaus' and banks' functions.

Section 36A. Publication and sharing of information Section 36A(1)(a) the weighted average lending and deposit rates for all banks and financial institutions; Section 36A(1)(b) the interest rate spread and its composition; Section 36A(1)(c) a simplified version of the balance sheets and income statements. Section 36A(2) Notwithstanding the provisions of this section, a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") shall disclose any positive or negative information of its customers to the licensed credit reference bureaus, where such information is reasonably required for the discharge of the functions of the banks and the licensed credit reference bureaus. [Act No. 4 of 2012 , s. 50.]

Section 36AVerify source

§ 36BRELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 36B. Reports to ParliamentProvision

The Central Bank must, quarterly, make and present to Parliament a report on the key economic and banking sector aggregate.

Section 36B. Reports to Parliament Section The Central Bank shall, on a quarterly basis, make and present to Parliament a report on the key economic and banking sector aggregate. [Act No. 4 of 2012 , s. 51.]

Section 36BVerify source

§ 37RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 37.[Repealed by ActNo. 9 of 1996, s. 16.]Repeal

Section 37 was repealed.

Section 37.[Repealed by ActNo. 9 of 1996, s. 16.]

Section 37Verify source

§ 38RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 38. Reserve requirementOffence

The Bank may require institutions to hold minimum cash balances on deposit with the Bank as reserves, may set ratios and computation methods (same for all institutions), may give transition periods, increases take effect after 30 days' notice, may impose penalty charges for deficiencies (not exceeding 1% per day or KSh 10,000 whichever is higher), and may pay a return on such balances in unusual circumstances.

Section 38. Reserve requirement Section 38(1) The Bank may from time to time require institutions to maintain minimum cash balances on deposit with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") as reserves against their deposit and other liabilities. Section 38(2) The Bank may specify ratios for different types of liabilities and may further specify the method of computing the amount of the total liabilities of an institution but the ratios specified shall be the same for all institutions: Provided that nothing in this subsection shall be construed to prevent the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") from allowing an institution or group of institutions upon which the provisions of subsection (1) are applied for the first time, a period within which to comply with the cash reserve ratio requirements as may be prescribed by the Bank. Section 38(3) Any specification of, or increase in the minimum reserve requirements under subsection (1) or subsection (2) shall take effect only after the expiration of thirty days’ notice to the institution of the Bank’s intention to take action. Section 38(4) The Bank may impose on any institution which fails to maintain the sufficient minimum cash balances required under this section, a penalty charge not exceeding one percent per day on the amount of the deficiency or ten thousand shillings, whichever is the higher for each day for which the deficiency continues. Section 38(5) The Bank may, if in its opinion circumstances of an unusual nature render it desirable so to do, pay a return and subject to such qualifications as it may determine on minimum cash balances deposited with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this section. Section 38(6)(a) a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") licensed under the Banking Act ( Cap. 488 ); Section 38(6)(b) a financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") licensed under the Banking Act ( Cap. 488 ); Section 38(6)(c) any other person or body of persons which the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , on the recommendation of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may by notice in the Gazette prescribe.

Section 38Verify source

§ 39RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 39.[Repealed by ActNo. 8 of 2004, s. 4.]Repeal

Section 39 has been repealed.

Section 39.[Repealed by ActNo. 8 of 2004, s. 4.]

Section 39Verify source

§ 39ARELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 39A.[Repealed by ActNo. 8 of 2004, s. 5.]Repeal

Section 39A has been repealed.

Section 39A.[Repealed by ActNo. 8 of 2004, s. 5.]

Section 39AVerify source

§ 40RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 40.[Repealed by ActNo. 9 of 1996, s. 17.]Repeal

Section 40 has been repealed by Act No. 9 of 1996, s. 17.

Section 40.[Repealed by ActNo. 9 of 1996, s. 17.]

Section 40Verify source

§ 41RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 41.[Repealed by ActNo. 9 of 1996, s. 17.]Repeal

Section 41 repealed.

Section 41.[Repealed by ActNo. 9 of 1996, s. 17.]

Section 41Verify source

§ 42RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 42.[Repealed by ActNo. 56 of 1968, s. 33.]Repeal

Section 42 was repealed by ActNo. 56 of 1968, s. 33.

Section 42.[Repealed by ActNo. 56 of 1968, s. 33.]

Section 42Verify source

§ 43RELATIONS WITH SPECIFIED BANKS AND MICROFINANCE BANKS - 43. Information to be furnished by specified banks,etcProvision

Specified banks and similar institutions must furnish the Central Bank with information and data the Bank reasonably requires; the Central Bank may publish information furnished under this section but must not publish information that would disclose the financial affairs of any person or undertaking unless that person's prior written consent is obtained.

Section 43. Information to be furnished by specified banks,etc Section 43(1) Every specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") , specified financial institution ("a financial institution or mortgage finance company within the meaning of the Banking Act which is specified by the Bank for the purposes of this Act;") , specified microfinance bank ("a licensed microfinance bank within the meaning of the Microfinance Act () which is specified by the Bank for the purposes of this Act;") , specified mortgage refinance companies and specified non-deposit-taking providers shall furnish to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , at such time and in such manner as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may prescribe, any information and data the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may reasonably require for the proper discharge of its functions under this Act. Section 43(2) The Bank may publish in whole or in part, at such times and in such manner as it may decide, any information or data furnished under this section: Provided that no such information shall be published which would disclose the financial affairs of any person or undertaking unless the prior consent in writing of such person or undertaking has first been obtained by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . [Act No. 41 of 2013 , Sch., Act No. 10 of 2018 , s. 69, Act No. 15 of 2021 , s. 5, Act No. 20 of 2024 , s. 10.]

Section 43Verify source

Part VIII

RELATIONS WITH PUBLIC ENTITIES

§ 44RELATIONS WITH PUBLIC ENTITIES - 44. Fiscal agent and banker to public entitiesProvision

The Bank must act as fiscal agent and banker to the Government and may, under special arrangements, act as fiscal agent and banker for other public entities.

Section 44. Fiscal agent and banker to public entities Section 44(1) The Bank shall act as fiscal agent of and banker to the Government. Section 44(2) The Bank may also perform the functions of fiscal agent and banker for any other public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") in accordance with, and within the scope determined by, any special arrangements made between the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and the public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") concerned.

Section 44Verify source

§ 45RELATIONS WITH PUBLIC ENTITIES - 45. Functions as fiscal agentProvision

The Bank acts as the official depository for specified public entities and must accept deposits and make payments on their behalf; where the Bank has no office it may appoint a specified bank after consulting the Cabinet Secretary.

Section 45. Functions as fiscal agent Section be the official depository of the public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") concerned and accept deposits and effect payments for the account of that public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") : Provided that the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may, after consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , select any specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") to act in its name and for its account as the official depository of that public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") in places where the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") has no office or branch;

Section 45Verify source

§ 46RELATIONS WITH PUBLIC ENTITIES - 46. Direct advances to GovernmentCommencement

The Central Bank of Kenya may make direct advances to the Government to offset timing differences in receipts and payments, subject to specified conditions including short-term government securities, market interest rate and purpose limited to temporary accommodation.

Section 46. Direct advances to Government Section 46(1) Subject to the provisions of this section, the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may make direct advances to the Government for the purpose of offsetting fluctuations between receipts from the budgeted revenue and payments of the Government. Section 46(2)(a) be secured with negotiable securities issued by the Government which mature not later than twelve months; Section 46(2)(b) bear interest at market rate; and Section 46(2)(c) be made solely for the purpose of providing temporary accommodation to the Government. Section 46(3) The total amount outstanding at any time of advances made under this section shall not exceed five per centum of the gross recurrent revenue of the Government as shown in the Appropriation Accounts for the latest year for which those Accounts have been audited by the Auditor-General: Provided that this subsection shall not apply in respect of advances made by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to the Government prior to the commencement of this section. Section 46(4) Any advance made by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to the Government which is outstanding at the commencement of this section shall be deemed to be a loan granted by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to the Government on such terms and conditions as may be determined by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") . Section 46(5) Any advance deemed to be a loan under subsection (4) shall be secured with such Government securities as the Bank may specify. Section 46(6) For the purposes of subsection (3) , the recurrent revenue of the Government shall include revenue from taxes, customs, excise and other duties, fees, rents, profits and income from any investment or undertaking, but shall not include proceeds from grants, or loans or disposal of assets for purposes of privatisation or any form of borrowing whether short-term or long-term. [Act No. 9 of 1996 , s. 18.]

Section 46Verify source

§ 46ARELATIONS WITH PUBLIC ENTITIES - 46A. Loans and advances to Deposit Protection FundBoardProvision

The Bank may lend to the Deposit Protection Fund Board, for fixed periods not exceeding three years, secured by Treasury Bills or other government securities, subject to section 37(1) of the Banking Act.

Section 46A. Loans and advances to Deposit Protection FundBoard Section Subject to section 37 (1) of the Banking Act ( Cap. 488 ), the Bank may grant loans or advances for fixed periods, not exceeding three years, to the Deposit Protection Fund Board on the security of Treasury Bills or other Government securities specified by the Bank. [Act No. 15 of 2003 , s. 53.]

Section 46AVerify source

§ 47RELATIONS WITH PUBLIC ENTITIES - 47. Open market operationsProvision

The Central Bank of Kenya is empowered to buy, hold and sell government and other specified negotiable securities; to issue, hold and trade Central Bank of Kenya bills (including repurchase agreements); and to accept deposits from commercial banks and microfinance banks on terms the Bank specifies.

Section 47. Open market operations Section 47(1)(a) purchase, hold or sell negotiable securities of any maturity issued by the Government or any other negotiable securities specified by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ; Section 47(1)(b) issue or hold Central Bank of Kenya bills and purchase or sell outright or by way of repurchase agreement, Central Bank of Kenya Bills; Section 47(1)(c) accept money as deposit from commercial banks and microfinance banks on such terms as may be specified by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 47(2) The total amount of securities held by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") at any time under subsection (1) of this section shall be excluded in the computation of the limit prescribed in subsection (3) of section 46 . [Act No. 9 of 1996 , s. 19, Act No. 8 of 2008 , s. 75, Act No. 41 of 2013 , Sch.]

Section 47Verify source

§ 48RELATIONS WITH PUBLIC ENTITIES - 48.[Repealed by ActNo. 9 of 1996, s. 20.]Repeal

Section 48 has been repealed.

Section 48.[Repealed by ActNo. 9 of 1996, s. 20.]

Section 48Verify source

§ 49RELATIONS WITH PUBLIC ENTITIES - 49. Prohibition of lending to public entitiesProvision

The Bank is prohibited from extending credit, directly or indirectly, to any public entity, except as provided in sections 36, 46, 46A and 47.

Section 49. Prohibition of lending to public entities Section Except as provided in accordance with sections 36 , 46 , 46A and 47 the Bank shall not extend any credit directly or indirectly to any public entity. [Act No. 9 of 1996 , s. 21, Act No. 15 of 2003 , s. 54.]

Section 49Verify source

§ 50RELATIONS WITH PUBLIC ENTITIES - 50. Adviser to GovernmentProvision

The Central Bank of Kenya must advise the Cabinet Secretary on matters affecting the Bank's principal objects; the Bank may tender advice; the Cabinet Secretary may request advice and the Bank must give advice when requested.

Section 50. Adviser to Government Section 50(1) It shall be the duty of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to advise the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") on any matter which in its opinion is likely to affect the achievement of the principal objects of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") as specified in section 4 . Section 50(2) The Bank may tender advice to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") on any matter in which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") is concerned. Section 50(3) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may request the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") to give its advice on any particular measures, situations or transactions, or on monetary, banking and credit conditions in or outside Kenya, and the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall give its advice accordingly.

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Part X

TRANSITIONAL PROVISIONS

§ 59TRANSITIONAL PROVISIONS - 59. TransitionalCommencement

Section 59 sets transitional obligations: persons previously conducting digital credit or credit guarantee business who are not regulated must apply for licences/registration within specified transitional timeframes; persons wishing to apply for credit guarantee licences may only do so after satisfying the Bank of compliance with specified sections.

Section 59. Transitional Section 59(1) Any Regulations required to be made under this Act, to give effect to the provisions on digital lending, shall be made within three months of the coming into force of this Act. Section 59(2) Any person who before the coming into force of this Act was in digital credit business and is not regulated under any other law, shall apply for a licence in accordance with section 33S , within six months of publication of the regulations under subsection (1) . Section 59(3) Any person who, before the coming into force of sections 33V , 33W , 33X and 33Y was carrying on credit guarantee business and is not regulated under any other law, shall apply for registration and a licence in accordance with sections 33W and 33X , within five years after the commencement of sections 33V , 33W , 33X and 33Y . Section 59(4) Despite subsection (3) , any person who, before the coming into force of sections 33V , 33W , 33X and 33Y , was carrying on credit guarantee business and wishes to apply for registration and a licence under sections 33W and 33Y , may only do so after satisfying the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of compliance with the provisions of sections 33V , 33W , 33X and 33Y . [Act No. 15 of 2021 , s. 7, Act No. 20 of 2024 , s. 12.]

Section 59Verify source

Legislative relationships

9 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

7 instruments

appointed under section 11 (4) of this Act
Section 16
Banking Act
Sections 2, 3, 15, 33X, 34, 36, 36A, 38, 43, 46A
Central Bank under this Act
Section 57
Conduct for non-deposit-taking credit providers. Section 33R. Regulation
Section 33R
Crime and Anti-Money Laundering Act
Sections 51A, 51B
Data Protection Act
Section 33S
Directors of the Bank appointed under Part IV of this Act
Sections 8, 9, 11, 12, 12A, 13, 18, 51

G–M

1 instrument

Kenya Act
Section 1

N–S

1 instrument

National Assembly or a member of a local authority established under the Local Government Act
Section 14

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27 Dec 2024 · currentEnglish

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