Regulatory Alerts2020-03-28
Banking Circular No. 5 of 2020 - Issuance of a Guidance Note on Pandemic Planning for the Banking Sector
The Central Bank of Kenya has issued a Guidance Note on Pandemic Planning for the Banking Sector in light of the global spread of Covid-19. This note provides minimum standards to ensure that banks have resilient frameworks to effectively address emerging pandemic risks, while supplementing existing business continuity plans as required under CBK Prudential Guideline on Business Continuity Management (CBK/PG/14). The guidelines require commercial banks, microfinance banks, and mortgage finance companies to update their Business Continuity Plans and formulate pandemio response plans for close monitoring of implementation. Institutions must also conduct a self-risk assessment of pandemic risks, notify CBK in case of any incidences, and submit the Pandemic Response Plan and Self-Risk Assessment by April 6, 2020.