ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
38. Holding interest without approval
Edition: 2025-07-09 · In force
38. Holding interest without approval
(1)A non-operating holding company which holds a beneficial interest of more than twenty-five percent of the share capital of an institution without the approval of the Central Bank, 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 non-operating holding company to hold a beneficial interest of more than twenty-five percent of the share capital of the institution without the approval of the Central Bank, 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)A financial institution or a mortgage finance company which holds a beneficial interest in a bank commits a violation and is liable, upon assessment—(a)where the shareholder is a financial institution or a mortgage finance company, to a penalty not exceeding twenty million shillings or three times the gross amount of the monetary gain made or loss avoided by the financial institution;(b)where the person is a corporate body, to a penalty not exceeding three million shillings; and(c)where the shareholder is a natural person, to a penalty not exceeding one million shillings.(5)A bank which permits a financial institution or a mortgage finance company to hold a beneficial interest in the bank, 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 bank.(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.