ADVOKS GLOBAL · KENYA
The Central Bank of Kenya (Mortgage Refinance Companies) Regulations, 2019
57. Sanctions
Edition: 2022-12-31 · In force
57. Sanctions
The Bank may impose any or all of the following administrative sanctions with regard to a mortgage refinance company that fails to comply with the Act, these Regulations or its directives and against its board of directors, or its officers—(a)monetary penalty on a mortgage refinance company, its directors, officers or employees responsible for noncompliance in such amounts not exceeding the amounts provided for under section 57(2) of the Act;(b)prohibition from declaring or paying dividends;(c)suspension of lending and investment operations;(d)suspension of capital expenditure;(e)suspension of issuance of debt instruments;(f)suspension from office of the defaulting director, officer or employee;(g)disqualification from holding any position or office in any licensed or financial institution in Kenya;(h)undertake more frequent inspections of that mortgage refinance company;(i)order the mortgage refinance company to submit to the Bank, within forty-five days, a capital restoration plan to restore the mortgage refinance company to the capital adequacy or, in the case of issues unrelated to capital, a plan to resolve all deficiencies to the satisfaction of the Bank;(j)at the expense of the mortgage refinance company, appoint a person suitably qualified and competent, in the opinion of the Bank, to advise and assist the mortgage refinance company in designing and implementing a capital restoration plan or other corrective action plan under paragraph (i), and the person appointed shall regularly report to the Bank on the progress of the plan;(k)impose restrictions on growth of assets of the mortgage refinance company;(l)revocation of the licence; and(m)any other action as the Bank may consider appropriate.