ADVOKS GLOBAL · KENYA
The Banking (Penalties) Regulations, 2025
52. Not providing for advances before declaring profit or loss
Edition: 2025-07-09 · In force
52. Not providing for advances before declaring profit or loss
(1)An institution which does not make a provision for loans, advances and other assets, before declaring a profit or loss, 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 fifty thousand shillings for each day, or part of each day, that the institution continues to commit the violation in paragraph (1).(5)A provision for loans, advances and other assets referred to in paragraph (1) which are to be made by an institution, shall be in the following manner—(a)for loans and advances classified as "normal", one percent;(b)for loans and advances classified as "watch", three percent;(c)for loans and advances classified as "substandard", twenty percent;(d)for loans and advances classified as "doubtful", one hundred percent; and(e)for loans, and advances classified as "loss", one hundred percent.