ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
24. Advances against security of shares of an intitution
Edition: 2025-07-09 · In force
24. Advances against security of shares of an intitution
(1)An institution which, in Kenya, grants an advance or credit facility, against the security of the shares of the institution or the shares of a banking group on consolidated basis, commits a violation and is liable, upon assessment, to a penalty not exceeding ten 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 which, in Kenya, permits to be outstanding, an advance or credit facility, against the security of the shares of the institution, commits a violation and is liable, upon assessment, to a penalty not exceeding ten million shillings or three times the gross amount of the monetary gain made or loss avoided by the institution.(4)An officer of an institution found liable for the violation in paragraph (3), commits a violation and is liable, upon assessment, to a penalty not exceeding one million shillings.(5)An institution found liable for the violation in paragraph (3) and continues to commit the violation in paragraph (3), 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 (3).(6)An officer—(a)of an institution found liable for the violation in paragraph (5); and(b)found liable for the violation in paragraph (4),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).