ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
36. Write-off of loans
Edition: 2022-12-31 · In force
36. Write-off of loans
(1)A mortgage refinance company shall write-off a loan or a portion of a loan from its balance sheet when—(a)the mortgage refinance company loses control of the contractual rights over the loan;(b)all or part of a loan is deemed uncollectible or there is no realistic prospect of recovery;(c)the borrower becomes insolvent; or(d)efforts to collect debt are abandoned for any other reason.(2)Every mortgage refinance company shall write off a loan or a portion of a loan classified as loss, within one hundred and eighty days of their being classified as loss, if there are no recoveries within that period.(3)A mortgage refinance company that contravenes this regulation is liable to such administrative sanction as may be prescribed by the Central Bank.