ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
37. Holding interest in the share capital
Edition: 2025-07-09 · In force
37. Holding interest in the share capital
(1)A person, or an associate of the person, who holds a beneficial interest of more than twenty-five percent of the share capital of an institution, commits a violation and is liable, upon assessment—(a)where the shareholder is an institution, 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;(b)where the shareholder is a corporate body, to a penalty not exceeding three million shillings; or(c)where the shareholder is a natural person, to a penalty not exceeding one million shillings.(2)An institution which permits a person, or the associates of the person, to hold a beneficial interest of more than twenty-five percent of the share 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.(3)An officer of an institution found liable for the violation in paragraph (2), commits a violation and is liable, upon assessment, to a penalty not exceeding one million shillings.(4)This regulation shall not apply where the person referred to in paragraph (1) is—(b)the Government of Kenya or the Government of a foreign sovereign State;(d)a foreign company which is licensed to carry on the business of an institution in its country of incorporation; or(e)a non-operating holding company approved by the Central Bank.