ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
23. Advances exceeding twenty-five percent of core capital
Edition: 2025-07-09 · In force
23. Advances exceeding twenty-five percent of core capital
(1)An institution which, in Kenya—(a)grants an advance or credit facility;(b)gives a financial guarantee; or(c)incurs any other liability on behalf of another person whose total value in respect of that person,that exceeds twenty-five per cent of the core capital of the institution, commits a violation and is liable, upon assessment, to a penalty not exceeding twenty million shillings or three times the gross amount of the monetary gain made or loss avoided by the institution.(2)An officer of an institution found liable for the violation in paragraph (1), commits a violation and is liable, upon assessment, to a penalty not exceeding one million shillings.(3)An institution found liable for the violation in paragraph (1) and continues to commit the violation in paragraph (1), commits a violation and is liable, upon assessment, to a penalty not exceeding one hundred thousand shillings for each day, or part of each day, that the institution continues to commit the violation in paragraph (1).(4)An officer—(a)of an institution found liable for the violation in paragraph (3); and(b)found liable for the violation in paragraph (2),commits a violation and is liable, upon assessment, to a penalty not exceeding one hundred thousand shillings for each day, or part of each day, that the institution continues to commit the violation in paragraph (1).(5)An institution which, in Kenya, permits to be outstanding, an advance or credit facility whose total value in respect of that person, exceeds twenty-five per cent of the core capital of the institution, commits a violation and is liable, upon assessment, to a penalty not exceeding twenty million shillings or three times the gross amount of the monetary gain made or loss avoided by the institution.(6)An officer of an institution found liable for the violation in paragraph (5), commits a violation and is liable, upon assessment, to a penalty not exceeding one million shillings.(7)An institution found liable for the violation in paragraph (5) and continues to commit the violation in paragraph (5), commits a violation and is liable, upon assessment, to a penalty not exceeding one hundred thousand shillings for each day, or part of each day, that the institution continues to commit the violation in paragraph (5).(8)An officer—(a)of an institution found liable for the violation in paragraph (7); and(b)found liable for the violation in paragraph (6),commits a violation and is liable, upon assessment, to a penalty not exceeding one hundred thousand shillings for each day, or part of each day, that the institution continues to commit the violation in paragraph (5).