ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
25. Advances in favour of company an institution has beneficial interest
Edition: 2025-07-09 · In force
25. Advances in favour of company an institution has beneficial interest
(1)An institution which, in Kenya—(a)grants an advance or credit facility;(b)gives a financial guarantee; or(c)incurs any other liability,in favour, or on behalf, of a company which the institution holds a beneficial interest of more than twenty-five per cent of the share capital, 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, in favour, or on behalf, of a company which the institution holds a beneficial interest of more than twenty-five per cent of the share capital, 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 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 (3).(7)This regulation shall not apply where the company referred to in paragraph (1) is an institution.