ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
35. Holding interest in an undertaking
Edition: 2025-07-09 · In force
35. Holding interest in an undertaking
(1)An institution which holds shares or the beneficial interest, in an undertaking of the institution, that exceeds twenty-five percent 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)This regulation shall not apply where—(a)the institution takes an interest in an undertaking in satisfaction of a debt due to the institution and disposes of the interest within the time allowed by the Central Bank;(b)the institution holds shares in a corporation established to promote development in Kenya, and approved by the Cabinet Secretary; or(c)the institution holds shares in a foreign company licensed to carry on the business of the institution in its country of incorporation and approved by the Central Bank.