Regulatory Alerts2013-09-27
Guideline Non Operating Holding Companies
The Central Bank of Kenya issues guidelines for non-operating holding companies to maintain a stable financial system. The guidelines cover approval, information gathering, shareholding changes, and control of these companies. Minimum liquid assets and capital requirements are also outlined, with non-compliance resulting in restricted or suspended activities. The Central Bank can obtain information about shareholders and investigate shareholding control. Investments and exposures are limited, and non-operating holding companies must disclose interests. Audits, inspections, and investigations are covered, with annual financial statements and external audits required. Prudential and reporting requirements are detailed, including capital adequacy, large exposures, and market risk exposures. The effective date of the guidelines is October 1, 2013.