ADVOKS GLOBAL · KENYA
Central Bank of Kenya Act
36. Loans
Edition: 2026-07-24 · In force
36. Loans
(1)The Bank may, for purposes of implementing monetary policy and maintaining orderly market conditions, grant loans or advances to Banks and microfinance institutions on such terms as may be determined by the Bank from time to time.(2)The Bank may, where it considers it necessary for the preservation of financial stability, provide emergency liquidity assistance to banks or microfinance institutions that—(a)meet the Bank’s criteria of solvency and viability;(b)are not subject to liquidation; and(c)are assessed by the Bank to be systemically important or likely to cause instability of the financial system.(3)The emergency liquidity assistance granted under subsection (2) shall be discretionary in nature, temporary, and subject to such terms and conditions as may be determined by the Bank.(4)Any loan or advance granted under subsection (2) shall be for a period of up to twelve months.(5)The Bank may extend the period specified under subsection (4) for a period not exceeding five years and under such terms and conditions as the Bank may specify.(6)All loans or advances granted under this section shall be secured by collateral acceptable to the Bank and subject to valuation, margin and risk management requirements determined by the Bank.(7)All loans or advances to Banks and microfinance institutions that were granted immediately before the commencement of this Act shall be deemed to have been granted under this Act.