Kenya: Prudential Guidelines for Institutions Licensed Under the Banking Act

This document summarizes all the conditions an institution must fulfil to comply with the Banking Act, effective from 1st January 2006, and be granted a license to conduct banking, financial or mortgage business in Kenya. The guide also includes all the necessary information on the application procedures and application forms. The topics are as following:

• Licensing of new institutions;
• Corporate governance;
• Capital adequacy;
• Risk classification of assets and provisioning;
• Liquidity management;
• Foreign exchange exposure limits;
• Prohibited business;
• Proceeds of crime and money laundering;
• Appointment, duties and responsibilities of external auditors;
• Publication of financial statements and other disclosures;
• Opening of new place of business, closing existing place of business or changing location of place of business;
• Mergers, amalgamations, transfers of assets and liabilities;
• Enforcement of banking laws and regulations.