Banking Act, 1989 🇰🇪

Kenya

Preface

Part I – PRELIMINARY

1. Short title

2. Interpretation

Part II – LICENSING OF INSTITUTIONS

3. Restrictions on carrying on banking business, etc.

4. Application for licence

5. Licensing of institutions

6. Revocation of licence

7. Minimum capital requirements

+4 more sections

Part III – PROHIBITED BUSINESS

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

+3 more sections

Part IV – RESERVES AND DIVIDENDS

17. Ratio between core capital and deposits

18. Ratio between capital and assets

19. Minimum liquid assets

20. Restrictions on dividends

Part V – ACCOUNTS AND AUDIT

20A. Financial year

21. Form of accounts

22. Accounts to be exhibited

23. Submission of accounts to the Central Bank

24. Appointment of auditors

+2 more sections

Part VI – INFORMATION AND REPORTING REQUIREMENTS

27. Collection of information by Central Bank

28. Furnishing of information

29. Cabinet Secretary may require further information

30. Time to furnish information

31. Publication of information

+2 more sections

Part VII – INSPECTION AND CONTROL OF INSTITUTIONS

32. Inspection of institutions

32A. Vetting of officials

32B. Examination and control of Groups

33. Powers of Central Bank to advise and direct

33A. Powers upon audit or inspection report

+9 more sections

Part VIII – THE DEPOSIT PROTECTION FUND

36. Repealed

36A. Repealed

36B. Repealed

36C. Repealed

37. Repealed

+8 more sections

Part IX – REPRESENTATIVE OFFICES OF FOREIGN INSTITUTIONS

43. Representative offices of foreign institutions

Part X – MISCELLANEOUS PROVISIONS

44. Restrictions on increase in bank charges

44A. Limit on interest recovered on defaulted loans

45. Cabinet Secretary to consult with the Central Bank

46. Bank holidays

47. Orders by High Court

+11 more sections

FIRST SCHEDULE

Part A – CRITERIA FOR DETERMINING PROFESSIONAL AND MORAL SUITABILITY

Part B – CRITERIA FOR DETERMINING MORAL SUITABILITY OF SIGNIFICANT SHAREHOLDERS PROPOSED TO MANAGE OR CONTROL INSTITUTIONS

SECOND SCHEDULE

Paragraph (a)

Paragraph (b)

Paragraph (c)

Paragraph (d)

Paragraph (e)

THIRD SCHEDULE

REPUBLIC OF KENYA

Banking Act, 1989

Act 9 of 1989

Assented to on 13 September 1989
Commenced on 1 November 1989
[This is the version of this document from 1 November 1989.]

An Act of Parliament to amend and consolidate the Law regulating the business of banking in Kenya and for connected purposes.

Part I – PRELIMINARY

1. Short title

This Act may be cited as the Banking Act.

2. Interpretation

(1)In this Act, unless the context otherwise requires—"agency" means an entity contracted by an institution and approved by the Central Bank or sub-contracted by such entity to provide the services of the institution on behalf of the institution, in such manner as may be prescribed by the Central Bank:Provided that where such entity is a co-operative society, prior approval to provide the services shall be sought from the Sacco Societies Regulatory Authority established under the SACCO Societies Act, 2008 (No. 14 of 2008);"assigned capital" has the meaning given to it in section 7(4);"bank" means a company w…

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Banking Act, 1989 🇰🇪

Table of Contents

REPUBLIC OF KENYA

Banking Act, 1989

Act 9 of 1989

Part I – PRELIMINARY

1. Short title

2. Interpretation

Read the Full Legislation on judy.legal