ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
28. Advances to officers
Edition: 2025-07-09 · In force
28. Advances to officers
(1)An institution which, in Kenya, grants an advance, loan or credit facility to its officers —(a)without the approval of the full Board of the directors of the institution;(b)not in the normal course of business;(c)on different terms than the terms of an advance, loan or credit facility offered to ordinary customers of the institution; and(d)without notifying the Central Bank within seven days of the approval referred to in sub-paragraph (a),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, loan or credit facility to its officers —(a)without the approval of the full Board of the directors of the institution;(b)not in the normal course of business;(c)on different terms than the terms of an advance, loan or credit facility offered to ordinary customers of the institution; and(d)without notifying the Central Bank within seven days of the approval referred to in sub-paragraph (a),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).