ADVOKS GLOBAL · KENYA
Central Bank of Kenya Act
46. Direct advances to Government
Edition: 2026-07-24 · In force
46. Direct advances to Government
(1)Subject to the provisions of this section, the Bank may make direct advances to the Government for the purpose of offsetting fluctuations between receipts from the budgeted revenue and payments of the Government.(2)Each advance made to the Government under this section shall—(a)be secured with negotiable securities issued by the Government which mature not later than twelve months;(b)bear interest at market rate; and(c)be made solely for the purpose of providing temporary accommodation to the Government.(3)The total amount outstanding at any time of advances made under this section shall not exceed five per centum of the gross recurrent revenue of the Government as shown in the Appropriation Accounts for the latest year for which those Accounts have been audited by the Auditor-General:Provided that this subsection shall not apply in respect of advances made by the Bank to the Government prior to the commencement of this section.(4)Any advance made by the Bank to the Government which is outstanding at the commencement of this section shall be deemed to be a loan granted by the Bank to the Government on such terms and conditions as may be determined by the Bank in consultation with the Cabinet Secretary.(5)Any advance deemed to be a loan under subsection (4) shall be secured with such Government securities as the Bank may specify.(6)For the purposes of subsection (3), the recurrent revenue of the Government shall include revenue from taxes, customs, excise and other duties, fees, rents, profits and income from any investment or undertaking, but shall not include proceeds from grants, or loans or disposal of assets for purposes of privatisation or any form of borrowing whether short-term or long-term.