Regulatory Alerts2019-02-28
Banking Circular No. 1 of 2019 - Kenya Banking Sector Charter
The Central Bank of Kenya has finalized and issued the Kenya Banking Sector Charter (BSC), a commitment from institutions in the banking sector to promote responsible and disciplined practices in accordance with sections 33(4)(a) of the Banking Act and section 48(2A)(a) of the Microfinance Act. The BSC applies to financial entities conducting banking, financial, mortgage finance, and micro-financing businesses under these respective acts. Effective March 1, 2019, institutions must develop time-bound plans approved by their boards for reference in implementing the BSC guidelines, submitting them to CBK by May 31, 2019. Additionally, quarterly progress reports on the Charter's implementation will be required within 10 days after each calendar quarter's end.