2018-04-09

CBK Guidance Note on Implementation of IFRS 9

The Central Bank of Kenya (CBK) issued a guidance note on the implementation of the International Financial Reporting Standard (IFRS) 9 for financial institutions licensed under the Banking Act and microfinance banks licensed under the Microfinance Act. The note provides instructions on how to compute regulatory capital following the adoption of IFRS 9, with a 5-year transition period granted for full compliance. Institutions must recognize expected credit losses and charge all provisions to the income statement, while adding back provisions related to performing facilities/loans over a 5-year period for core/total capital calculations.

Kenya

Central Bank of Kenya

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