Sharp Daily
No Result
View All Result
Sunday, October 19, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

CBK introduces new fines policy in Draft Banking Regulations

Austin Wekesa by Austin Wekesa
February 21, 2024
in News
Reading Time: 2 mins read

 The Central Bank of Kenya (CBK) has revised its fines policy in the recently released Draft Banking (Penalties) Regulations 2024, transitioning from generic fines for all infractions to specific fines targeting financial institutions and their officials who contravene regulations.

Under the updated guidelines, financial institutions may incur fines of up to KES 20 million for breaches concerning minimum capital requirements, adequacy ratios, loan provisions, and corporate governance standards.

Moreover, institutions failing to maintain accurate records or comply with CBK audit requests could face similar penalties.

Penalties for other violations range from KES 2 million to KES 10 million for institutions. This regulatory overhaul marks the first revision since 2017 when a uniform maximum fine of KES 20 million was enforced, regardless of the nature of the violation.

RELATEDPOSTS

Real yields vs. nominal yields on Kenya’s government bonds

May 21, 2025

Kenya’s risk-based credit pricing: Five years on

April 24, 2025

The maximum penalty for individuals violating the Banking Act remains unchanged at KES 1 million. Violations with potential fines of up to KES 10 million include actions by institutional shareholders who fail to reduce their stake below five percent in a bank following CBK’s determination that they no longer meet the criteria for significant shareholders.

Additionally, shareholders persisting in exercising their voting rights despite failing the CBK assessment may face fines of up to KES 10 million.

Moreover, shareholders transferring more than five percent ownership in a bank without CBK approval could incur fines of up to KES 8 million, as well as those breaching the 25.0% cap on beneficial ownership in a bank.

CBK also imposes fines of up to KES 5 million for offenses such as unauthorized director appointments and improper display of audited financial results in branches.

In the fiscal year ending June 2023, CBK collected KES 66 million in fines and penalties from banks and forex bureaus.

These heightened surveillance measures and stricter penalties underscore CBK’s commitment to stabilizing the sector following the bank collapses in 2016 and combating financial crimes.

Previous Post

Kenya’s public debt rises to KES 11.1 trillion

Next Post

KRA boss Humphrey Wattanga grilled over snobbing MPs’ invite

Austin Wekesa

Austin Wekesa

Related Posts

News

Start Q4 strong with the Cytonn Money Market Fund

October 9, 2025
News

Kenya Q2’ 2025 GDP growth accelerates to 5.0%

October 3, 2025
News

Argentina’s crisis and Kenya’s lessons on political economy and market confidence

September 25, 2025
News

Kenya’s financial system remains stable but faces rising risks

September 25, 2025
News

Where do Kenyan stock returns come from? A napkin framework

September 19, 2025
News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025

LATEST STORIES

The Challenge of Preserving Retirement Savings in Kenya

October 16, 2025

Understanding Segregated vs Guaranteed Pension Schemes

October 16, 2025

The Sanlam-Jubilee deal

October 16, 2025

Kenya’s industrial real estate awakening

October 16, 2025

Stanbic Kenya in advanced talks to acquire NCBA: A game-changer in Kenya’s banking sector

October 16, 2025

CBK flags surge in financial fraud as losses triple to KES 1.6 billion

October 15, 2025

StanChart Kenya retirees face fresh legal stalemate over KES 7.0 billion pension payout

October 15, 2025

U.S. bank earnings take center stage amid government data freeze

October 15, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024