Banking Act

20. Restrictions on dividends

Edition: 2024-12-27 · In force

20. Restrictions on dividends

(1)No institution incorporated in Kenya shall pay any dividend on its shares or make any other form of distribution to its shareholders until all its capitalized expenditure (including preliminary expenses, share-selling commission, brokerage, amount of losses incurred and items of expenditure not represented by tangible assets) has been written off and provision has been made for loans, advances and other assets in accordance with subsection (2).

(2)Every institution shall—

(a)make provision for loans, advances and other assets before any profit or loss is declared; and

(b)ensure that the provision for loans, advances and other assets made under paragraph (a) is adequate according to such guidelines as may be prescribed by the Central Bank.

[Act No. 8 of 2009, s. 56.]

← Previous provision Next provision →

Source: Kenya Law