Regulatory Alerts2020-07-01
Added · Updated
Banking Circular No. 4 of 2016: The Banking (Amendment) Act, 2016
The Banking (Amendment) Act 2016, effective September 14, 2016, establishes the Central Bank Rate (CBR) as the base rate for loan interest calculations and mandates that interest rates on credit facilities be capped at four percentage points above the CBR. Financial institutions must submit monthly reporting returns to the Central Bank of Kenya within five working days of month-end, starting October 7, 2016, for the September period. Additionally, banks are required to provide the Central Bank with updated policies by September 30, 2016, ensuring full disclosure of all loan charges and terms to borrowers.
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