BUSINESS

CBK Opens Public Review of Banking Rules

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Outside Central Bank of Kenya (CBK) headquarters in Nairobi.
Central Bank of Kenya (CBK) headquarters in Nairobi.
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The Central Bank of Kenya (CBK) is seeking public views on proposed changes to banking rules that could reshape how lenders manage risks and are supervised.

The regulator has released draft revised Prudential Guidelines, Risk Management Guidelines and Guidance Notes for public participation. CBK is also consulting on a proposed framework for Domestic Systemically Important Banks (D-SIBs).

The exercise, announced on Thursday, September 10, 2026, is part of CBK’s review of the regulatory framework governing Kenya’s banking sector.

“This review forms part of CBK’s ongoing efforts to strengthen the regulatory framework, enhance the resilience of the banking sector, and align Kenya’s supervisory framework with international standards and emerging best practices,” CBK said.

The proposed changes come at a time when banks are dealing with an evolving financial environment and growing pressure to strengthen their internal systems and risk controls.

While the Prudential Guidelines set the standards that banks must meet in their operations, the Risk Management Guidelines focus on how financial institutions identify and deal with threats that could affect their business.

CBK’s review will also cover Guidance Notes, which provide further instructions to banks on regulatory matters.

Focus on banks that could affect the entire sector

The proposed D-SIBs Framework is among the key documents included in the public consultation.

Domestic Systemically Important Banks are institutions whose financial problems could have a wider effect on Kenya’s banking system and economy.

The framework is expected to guide CBK in identifying such banks and determining how they should be regulated and supervised.

The failure of a major bank can have consequences beyond its customers and shareholders. It can affect confidence in other financial institutions and, in extreme cases, create pressure across the wider financial system.

CBK is therefore seeking to strengthen its approach to supervising banks considered important to the stability of the sector.

The public participation process will allow banks, financial experts, businesses and other interested parties to examine the draft rules before they are finalised.

CBK said the consultation is being conducted under the Central Bank of Kenya Act and the Banking Act. The exercise is also in line with public participation requirements under the Constitution and the Statutory Instruments Act.

Stakeholders have until November 7, 2026, to submit their views.

Comments should be sent to [email protected] using the template provided by CBK. Those submitting hard copies can address them to the Director of the Bank Supervision Department at the Central Bank of Kenya in Nairobi.

The feedback will be considered as CBK works towards finalising the revised rules that will guide banking supervision and risk management in the country.

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