The Central Bank of Kenya has published draft Banking (Penalties) Regulations, 2024 which will effectively revoke the Banking (Penalties) Regulations 1999. The CBK invites members of the public to send comments on or before 18th March 2024.
The draft Regulations provide comprehensively on the penalties to be imposed by the CBK for violation of the Banking Act, Regulations and the Prudential Guidelines. The draft Regulations are divided into:
a. Penalties for each violation.
b. Process of assessment of violation
c. Imposition of penalties
d. Review of assessment of violation or imposition of penalty,
e. Payment of penalties.
Penalties for each violation range from minimum Ksh. 1Million to Ksh. 20 Million, depending on the violation, whether the violator is a natural or corporate person, severity of violation amongst others.
In assessing the penalty to be imposed, the CBK will adhere to the principles of right to fair hearing/defence and the principle of proportionality.
We’ll look out for any comments or revisions on the draft and update this alert.
In the meantime, the draft Regulations can be accessed here.
