ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
33. Loan provisioning
Edition: 2022-12-31 · In force
33. Loan provisioning
(1)In determining the amount of potential loss in specific loans or in the aggregate loan portfolio, every mortgage refinance company shall be guided by the following minimum provisioning percentage—(a)for loans classified "Normal", one per centum;(b)for loans classified "Watch", five per centum;(c)for loans classified -Substandard", twenty five per centum;(d)for loans classified "Doubtful", seventy five per centum; and(e)for loans classified "Loss", one hundred per centum.(2)Where the impairment charges computed under International Financial Reporting Standards are lower than provisions required under these Regulations, the excess provisions shall be treated as an appropriation of retained earnings.(3)Where the impairment charges computed under International Financial Reporting Standards are higher than provisions required under these Regulations, the International Financial Reporting Standards impairment charges shall be considered adequate for the purposes of these Regulations.(4)A mortgage refinance company that contravenes this regulation is liable to any of the sanctions provided for under in regulation 57.