Kenya Banking Act

CHAPTER 488
THE BANKING ACT
The Kenya Banking Act outlines the rules that govern the banking sector.Below is an arrangement of sections of the Act
ARRANGEMENT OF SECTIONS
Section
Part I – Prelimin ary
1-Short title.
2-Interpretation.
Part II - Lic ensing of Ins titutions
3-Restriction on carrying on banking business, etc.
4-Application for licence.
5-Licensing of institutions.
6-Revocation of licence.
7-Minimum capital requirements.
8-Location of places of business.
8A-Branches and subsidiaries.
9-Amalgamations and transfers of assets and liabilities.
9A-Directors, chief executive officers and significant
shareholders to be fit and proper.
Part III - Prohibited Busin ess
10-Limit on advances, credits and guarantees.
11-Restrictions on advances, credits and guarantees.
12-Restriction on trading and investments.
13-Restrictions on ownership of share capital of an institution.
14-Restrictions on advances for purchase of land.
15-Mortgage finance companies.
16-Restrictions on deposit taking.
16A-Imposition of charges and payment of interest.
Part IV - Reserves and Divi dends
17-Ratio between capital and deposits.
18-Ratio between capital and assets.
19-Minimum liquid assets.
20-Restrictions on dividends.
20A-Financial year.
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Rev. 2009] Banking CAP. 488
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Part V - Acco unts and Audit
21-Form of accounts.
22-Accounts to be exhibited.
23-Submission of accounts to the Central Bank.
24-Appointment of auditors.
25-Change of auditors to be notified to the Central Bank.
26-Auditor’s duty of confidence.
Part VI - Info rmation and Reporting Requirements
27-Collection of information by Central Bank.
28-Furnishing of information.
29-Minister may require further information.
30-Time to furnish information.
31-Publication of information.
Part VII - Ins pection and Con trol of Ins titutions
32-Inspection of institutions.
32A-Vetting of officials.
33-Powers of Central Bank to advise and direct.
33A-Powers upon audit or inspection report.
34-Powers of Central Bank to intervene in management.
34A-Voluntary liquidation.
35-Liquidation of institutions by Central Bank.
35A-Expenses under Part.
Part VIII - The Deposi t Protection Fund
36-Deposit Protection Fund Board.
36A-Objects and functions of the Board.
36B-Remuneration of Board Members.
36C-Protection from personal liability.
37-Deposit Protection Fund.
38-Contribution to the Fund.
39-Protection of deposits.
39A-Limitation of claims.
40-Rights of the Board on insolvency.
40A-Rights of assignment.
41-(Repealed).
42-Annual reports, etc.
Part IX - Representativ e Offic es of Foreign Ins titutions
43-Representative offices of foreign institutions.
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Part X - Misc ellaneous Provisions
44-Restriction on increase in bank charges.
44A-Limit on interest recovered on defaulted loans.
45-Minister to consult with the Central Bank.
46-Bank holidays.
47-Orders by High Court.
48-Disqualification of officers.
49-Penalties for offences.
50-Penalties for default by officers.
51-Misleading advertisement for deposits.
52-Civil obligations.
52A-Act to prevail in event of conflict.
53-Exemptions.
54-Act not to apply to certain institutions.
55-Regulations.
56-Repeal and savings.
57-[Spent].