Central Bank of Kenya Act

Section 1. Short title Section This Act may be cited as the Central Bank of Kenya Act.

Section 2. Interpretation Section In this Act, unless the context otherwise requires— "authorized bank" means a specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized bureau" means a foreign exchange bureau ("a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under section 33B ; "authorized dealer" means an authorized bank ("a specified bank licensed by the Bank under;") , authorized bureau ("a foreign exchange bureau licensed by the Bank under;") , authorized mortgaged finance company, an authorized money remittance provider ("a money remittance operator licensed by the Bank underto carry out the business of money remittance;") or an authorized microfinance bank ("a microfinance bank licensed by the Bank under;") licensed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Ke...

Section 3. Establishment of Bank and legal status Section 3(1) There is hereby established a bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") which shall be known as the Central Bank of Kenya and which shall also be known by the alternative corporate name of the Banki Kuu ya Kenya. Section 3(2) The Bank shall be a body corporate with perpetual succession and a common seal, with power to acquire, own, possess and dispose of property, to contract, and to sue and to be sued in its own name. Section 3(3) The Bank shall exercise any type of central banking function unless specifically excluded under this Act, and shall enjoy all the prerogatives of a central bank ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, banking business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") . Section 3(4) The Bank may make its own rules of conduct or procedure, not inconsistent with the provisions of this Act, for the good order and proper management of the B...

Section 4. Principal object ofthe Bank Section 4(1) The principal object of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be to formulate and implement monetary policy directed to achieving and maintaining stability in the general level of prices. Section 4(2) The Bank shall foster the liquidity, solvency and proper functioning of a stable market-based financial system. Section 4(3) Subject to subsections (1) and (2) , the Bank shall support the economic policy of the Government, including its objectives for growth and employment. Section 4(4)(a) the price stability targets of the government; and Section 4(4)(b) the economic policy to be taken by the Government. Section 4(5) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall specify at least in every period of 12 months, the price stability target in consultation with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and economic policies to be taken by the Government; provided that the first such specification shall be made at the beginning of the financial year next following the commencement of this se...

Section 5. Head office and branches Section 5(1) The Bank shall have its head office in Nairobi but during a time of national emergency the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may, unless the President otherwise directs, establish its head office temporarily or permanently in any other place within Kenya or elsewhere. Section 5(2) The Bank may establish or close branches in any place within Kenya and may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , open or close branches outside Kenya.

Section 6. Agents Section The Bank may, with the prior approval of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , appoint, on such terms as it considers appropriate, or cancel the appointment of, agents, both within and outside Kenya.

Section 7. Exemption from tax Section 7(1) The Bank shall not be liable to any taxation imposed by any law in respect of income or profits. Section 7(2) No duty shall be chargeable under the Stamp Duty Act ( Cap. 480 ) in respect of any instrument executed by or on behalf of or in favour of the Bank in any case where, but for this exemption, the Bank would be liable to pay such duty. Section 7(3) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, whether for the purpose of removing any doubt as to the extent of the foregoing provisions of this section or for the purpose of extending the immunities of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , by order published in the Gazette specify any tax, duty, fee, rate, levy, cess or other impost as one to which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not be liable, and the law relating thereto shall have effect accordingly.

Section 4A. Other objects ofthe Bank Section 4A(1)(a) formulate and implement foreign exchange policy; Section 4A(1)(b) hold and manage its foreign exchange reserves; Section 4A(1)(c) license and supervise authorised dealers; Section 4A(1)(d) formulate and implement such policies as best promote the establishment, regulation and supervision of efficient and effective payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") , clearing and settlement systems; Section 4A(1)(da) license and supervise non-deposit-taking credit providers not regulated under any other written law; Section 4A(1)(db) license and supervise credit guarantee companies not regulated under any other written law; Section 4A(1)(e) act as banker and advisor to, and as fiscal agent of the Government; Section 4A(1)(f) issue currency ("the currency of Kenya or foreign currency;") notes and coins; and Section 4A(1)(g) license and supervise mortgage refinance companies. Section 4A(1)(h) banks and their agents; Section 4A(1)(h)(i) banks and their agents; Section 4A(1)...

Section 4B. Monetary policy statements Section 4B(1)(a) specify the policies and the means by which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") intends to achieve the policy targets; Section 4B(1)(b) state the reasons for adopting such policies and means; Section 4B(1)(c) contain a review and assessment of the progress of the implementation by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of monetary policy during the period to which the preceding policy statement relates. Section 4B(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") shall lay every statement submitted under subsection (1) before the appropriate committee of the National Assembly not later than the end of the subsequent session of Parliament after the statement is so submitted. Section 4B(3)(a) every monetary policy statement submitted under subsection (1) ; and Section 4B(3)(a)(i) every monetary policy statement submitted under subsection (1) ; and Section 4B(3)(a)(ii) its monthly balance sheet, to be published in the Gazette ; and Section 4B(3)(b) disseminate key financial data and informa...

Section 4C. Consultations on monetary policy Section 4C(1) There shall be regular consultations on monetary policy between the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") and the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") . Section 4C(2) Where in exceptional circumstances and after consultation with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") is of the opinion that the monetary policy adopted by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") is inconsistent with the principal object of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, upon resolution by Cabinet, direct the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in writing to adopt such monetary policy as the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may speci...

Section 4D. Monetary Policy Advisory Committee Section 4D(1) There shall be a committee of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , to be known as the Monetary Policy Committee of the Central Bank of Kenya, which shall have the responsibility within the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for formulating monetary policy. Section 4D(2)(a) the Governor, who shall be the Chairperson; Section 4D(2)(b) the Deputy Governors, who shall be deputies to the Chairperson; Section 4D(2)(c) two members appointed by the Governor from among the staff; and Section 4D(2)(d) four other members who have knowledge, experience and expertise in matters relating to finance, banking, and fiscal and monetary policy, appointed by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") ; Section 4D(2)(e) the Principal Secretary to the National Treasury, or his representative, who shall be a non-voting member. Section 4D(2A)(a) one shall be a person with executive responsibility within the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") for monetary...

Section 8. Authorized capital of Bank Section 8(1) The authorized capital of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be five billion shillings which may be increased by such amount as shall be determined by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") . Section 8(2) The ownership of the entire paid up capital of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be vested in the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") for the National Treasury. Section 8(3) The Bank may, having regard to the amount by which the value of the assets of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") exceeds its liabilities, increase its paid up capital by such amount, payable out of the General Reserve Fund, as the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall direct. Section 8(4) The paid up capital of the Bank ("the Central Bank o...

Section 9. General Reserve Fund Section 9(1) The Bank shall establish and maintain a fund designated as the General Reserve Fund, to which shall be transferred at the end of each financial year at least ten per centum or any other amount as the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , may determine, of the net annual profits of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff benefit funds, and such other contingencies and accounting provisions as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") deems appropriate. Section 9(2) Subject to subsection (1) , and section 51 , the net annual profits of the Bank, calculated in accordance with this section, shall be paid into the Consolidated Fund. Section 9(3) The amount of any net losses of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) esta...

Section 10.Boardof Directors Section determining the policy of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , other than the formulation of monetary policy;

Section 11. TheBoardof Directors Section 11(1)(a) a Chairperson appointed by the President; Section 11(1)(b) a Governor; Section 11(1)(c) the Principal Secretary to the National Treasury or his or her representative, who shall be a non-voting member; Section 11(1)(d) eight other non-executive directors. Section 11(2) The Chairperson and directors appointed under paragraph (d) of subsection (1) shall be appointed by the President with the approval of Parliament and shall hold office for a period of four years but shall be eligible for re-appointment for one further term of four years. Section 11(2A) The Chairperson shall be appointed by the President through a transparent and competitive process and with the approval of Parliament, and shall hold office for a term of four years but shall be eligible for reappointment for one further term. Section 11(3) The members of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall be appointed at different times so that the respective expiry dates of the members’ terms of office shall fall at different times. Section 11(4) A member of the Board ("the Board of Directors of the Bank appointed under Part IV o...

Section 12. Meetings ofBoard Section 12(1) The Chairperson shall convene meetings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") not less than once in every two months, or whenever the business of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") so requires, or whenever he is so requested in writing by at least three directors. Section 12(1A) The Chairperson shall preside at all meetings of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") . Section 12(1B) In the absence of the Chairperson at a meeting, the members present shall elect one of the members appointed under paragraph (d) of section 11 (1) to preside at that meeting of the Board. Section 12(1C) The directors appointed under section 11 (1)(d) shall elect one from amongst their number to preside at the meetings of the Board until a Chairperson is appointed. Section 12(2) A quorum for any meeting of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") shall be the Chairperson, the Governor and three directors. Section 12(3) Decisions of the Board ("the Board of Directors of the...

Section 13. Governor Section 13(1) There shall be a Governor who shall be appointed by the President though a transparent and competitive process and with the approval of the National Assembly. Section 13(2) The Governor shall hold office for a term of four years, but shall be eligible for re-appointment for one further term of four years. Section 13(3) The Governor shall be the chief executive officer of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and, subject to the general policy decisions of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , shall be responsible for the management of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , including the organization, appointment and dismissal of the staff in accordance with the general terms and conditions of service established by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , and the Governor shall have authority to incur expenditure for the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") within the administrative budget approved by the Board (...

Section 14. General disqualifications for allBoardmembers Section 14(1)(a) a member of the National Assembly or a member of a local authority established under the Local Government Act ( Cap. 265 ); Section 14(1)(b) a salaried employee of any public entity ("the Government, the Organization, the Authority, any local authority or any public body specified by the Cabinet Secretary, on the recommendation of the Bank, as a public entity for the purposes of this Act;") (except on a secondment basis); Section 14(1)(c) a director, officer, employee, partner in or shareholder of any specified bank ("any bank within the meaning of such expression in the Banking Act () which is specified by the Bank for the purposes of this Act;") or specified financial institution ("a financial institution or mortgage finance company within the meaning of the Banking Act which is specified by the Bank for the purposes of this Act;") : Section 14(1)(i) paragraph (b) shall not be applicable to the representative of the National Treasury; and Section 14(1)(ii) the President may in exceptional cases waive any of the above provisions with respect to any Director (other than the Governor or Deputy Governor) if it...

Section 15. Special disqualifications for Governor and Deputy Governor Section 15(1) The Governor and the Deputy Governor shall owe their allegiance entirely to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and shall not engage in any paid employment or business or professional activity outside the duties of their respective offices: Provided that nothing in this subsection shall prevent the Governor or Deputy Governor from accepting or holding any academic office or position in an institution of higher learning or any advisory position or membership in any committee or commission with public responsibility, or from serving in any international financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), whether in Kenya or elsewhere;") of which Kenya is a member or with which Kenya is associated, or any specialized financial institution ("a body corporate or other body of persons, carrying on, whether on their own behalf or as agent for another, financial business within the meaning of the Banking Act (), wheth...

Section 16. Remuneration Section 16(1) The Governor, the Deputy Governor, and any substitute appointed under section 11 (4) of this Act shall be paid by the Bank such salaries and allowances as may be determined from time to time by the President, but such salaries and allowances shall not be altered to the detriment of any person during his term of office. Section 16(2) The directors and any substitute appointed under section 11 (4) shall be paid by the Bank such allowances as may from time to time be determined by the President.

Section 17. Preservation of secrecy Section 17(1) Except for the purpose of the performance of his duties or the exercise of his powers, the Governor, the Deputy Governor, any Director or any other officer or employee of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall not disclose any information which he has acquired in the performance of his duties or the exercise of his powers. Section 17(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable to a fine not exceeding two thousand shillings or to imprisonment for a term not exceeding one year, or to both in addition to any disciplinary action which may be taken by the Board.

Section 18. Declaration of interest Section The Governor, the Deputy Governor, and any Director shall declare his or her interest in any specific proposal being considered or to be considered by the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") .

Section 12A. Delegation by theBoard Section The Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") may, by resolution either generally or in any particular case, delegate to any committee of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") , or to any member thereof, or to any officer, employee or agent of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") the exercise of any of the powers or the performance of any of the functions or duties of the Board ("the Board of Directors of the Bank appointed under Part IV of this Act;") under this Act or any other written law. [Act No. 9 of 1996 , s. 7.]

Section 13A. Common seal and power of attorney Section 13A(1) The affixing of the common seal of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be authorized by the signature of the Governor and of some other person or persons authorized by the Governor in that behalf. Section 13A(2) The Governor may, under the common seal of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , empower any person to execute or authenticate on behalf of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") any documents on its behalf. [Act No. 13 of 1978 , Sch.]

Section 13B. Deputy Governor Section 13B(1) There shall be two Deputy Governors who shall be appointed by the President through a transparent and competitive process and with the approval of Parliament. Section 13B(2) The Deputy Governors shall hold office for a term of four years, but shall be eligible for re-appointment for one further term of four years. Section 13B(3) The Deputy Governors shall perform such functions as the Governor may from time to time assign to them. Section 13B(4)(a) the position of Governor falls vacant in the period before a substantive appointment is made; or Section 13B(4)(b) the Governor is temporarily absent from office. Section 13B(5) A Deputy Governor appointed under subsection (4) shall, during the period of appointment, exercise all the powers and perform all the functions conferred on the Governor under this Act under any other law. [Act No. 10 of 2006 , s. 50, Act No. 4 of 2012 , s. 48.]

Section 13C. Qualifications for Governor and Deputy Governor Section 13C(1) The Governor and Deputy Governors shall be fit and proper persons of recognized professional standing and over ten years' experience at senior management level in the field of economics, banking, finance, law or other fields relevant to the functions of the Central Bank. Section 13C(2) For the purposes of this section, "fit and proper" means possessing all the attributes to be taken into account in determining the suitability of a person to be appointed as Governor, including the person's general probity, competence and soundness of judgment for the fulfillment of the responsibilities of office and the diligence with which the person is likely to fulfill those responsibilities. [Act No. 36 of 2012 , s. 5.]

Section 51. Revaluation profits or losses Section 51(1) Profits or losses which are attributable to any revaluation of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s net assets or liabilities in gold, foreign exchange or foreign securities, made as a result of any change in the value of any currency ("the currency of Kenya or foreign currency;") unit, shall be taken into account in the computation of the annual profits and losses of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") : Provided that the accounts of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall distinguish the profits or losses arising from normal operations of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and those resulting from profits or loss from exchange fluctuations. Section 51(2) The balance outstanding in the Revaluation Account existing immediately before the commencement of this section shall be repaid from the net annual profits of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") by instalments of such amount...

Section 52. Prohibited operations Section save as expressly authorized by this Act, engage in trade, or own or acquire any direct interest in any commercial, agricultural, industrial or similar undertaking, except in the course of obtaining satisfaction for any debt due to the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") , and any such interest shall be disposed of at the earliest suitable opportunity;

Section 53. Financial year Section The financial year of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be the same as the Government’s financial year and the accounts of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be closed at the end of each financial year.

Section 54. Annual reports Section Within three months after the close of each financial year the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall submit to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") a report on the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s operations throughout that year, together with the balance sheet and the profit and loss account as certified by auditors appointed by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") and approved by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") .

Section 55. Publication of reports,etc. Section 55(1) After submission to the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall publish the annual report referred to in section 54 . Section 55(2) The Bank may also issue such other publications as it considers to be in the public interest.

Section 56. Auditor-General Section The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, in addition to the audit carried out under section 54 , if he thinks fit, require the Auditor-General to audit the accounts of the Bank.

Section 57. Regulations bythe Bank Section 57(1) The Bank may make regulations, issue guidelines, circulars and directives for the purpose of giving effect to the provisions of this Act and generally for the better carrying out of the objects of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") under this Act. Section 57(2) Without prejudice to the generality of subsection (1) , the Bank may, in regulations, prescribe penalties to be paid by authorised dealers who fail or refuse to comply with any guidelines or directions of the Central Bank under this Act, which penalties shall not exceed five hundred thousand shillings in the case of an authorised dealer, or two hundred thousand shillings in the case of a natural person and may prescribe additional penalties, not exceeding ten thousand shillings in each case for each day or part thereof during which such failure or refusal continues. Section 57(3)(a) the licensing requirements for non-deposit-taking credit businesses; Section 57(3)(aa) the procedure for the registration of non-deposit-taking credit providers; Section 57(3)(b) permissible and prohibited activities; Section 57(3)(c) anti-money la...

Section 51A. Powers on anti-money laundering, combating the financing of terrorism and countering proliferation financing matters Section 51A(1) Pursuant to sections 2A , 36A , 36B and 36C of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), the Central Bank shall regulate, supervise and enforce compliance for anti-money laundering, combating the financing of terrorism and countering proliferation financing purposes by all reporting institutions regulated and supervised by the Central Bank and to whom the provisions of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ) apply. Section 51A(2)(a) vet proposed significant shareholders, proposed beneficial owners, proposed directors and senior officers of a reporting institution; Section 51A(2)(b) conduct onsite inspection; Section 51A(2)(c) conduct offsite surveillance; Section 51A(2)(d) undertake consolidated supervision of a reporting institution and its group; Section 51A(2)(e) compel the production of any document or information the Central Bank may require for the purpose of discharging its supervisory mandate under the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ); Section 51A(2)(f) im...

Section 51B. Penalties for violations relating to money laundering, terrorism financing. Section 51B(1) No money remittance, foreign exchange bureau ("a company incorporated in Kenya whose liability is limited by shares, with the main object of buying and selling foreign currency;") , digital credit provider , director, officer, employer, agent or any other person shall violate or fail to comply with any provision of the Proceeds of Crime and Anti-Money Laundering Act ( Cap. 59A ), or any regulation, guideline, rule, direction or instruction issued under the said Act or under this section. Section 51B(2)(a) in case of a legal person, to a penalty not exceeding five million shillings; Section 51B(2)(b) in the case of a natural person, to a penalty not exceeding one million shillings; and Section 51B(2)(c) to additional penalties not exceeding one hundred thousand shillings in each case for each day or part thereof during which such violation or non-compliance continues.

Section 51C. Rights and fundamental freedoms Section All persons subject to this Act shall enjoy all rights and fundamental freedoms enshrined in the Constitution unless limited to the extent specified in Article 24 of the Constitution, this Act or any other Act. [Act No. 10 of 2023 , Sch.]

Section 51D. Limitation of right to privacy Section 51D(1) The right to privacy guaranteed under Article 31 of the Constitution is hereby limited under Article 24 of the Constitution only to the nature and extent contemplated under subsection (2) . Section 51D(2)(a) the person’s home or property may, with a warrant be searched; Section 51D(2)(b) the person’s possessions may be seized; Section 51D(2)(c) information relating to that person’s financial, family or private affairs where required may be revealed; or Section 51D(2)(d) the privacy of a person’s communications may be investigated or otherwise interfered with. Section 51D(3) A limitation of a right under subsection (1) shall apply only for the purpose of the prevention, detection, investigation and prosecution of proceeds of crime, money laundering and financing of terrorism. [Act No. 10 of 2023 , Sch.]

Section 56A. General Penalty Section A person convicted of an offence under this Act for which no other penalty is provided shall be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for a term not exceeding three years, or to both. [Act No. 8 of 2009 , s. 64.]

Section 19. Currency of Kenya Section 19(1) The unit of currency of Kenya ("bank notes and coins issued by the Bank under(1) and any right to receive such bank notes or coins in respect of any credit or balance at a bank or financial institution located within or outside Kenya;") shall be the Kenya shilling ("a Kenya shilling as provided inof this Act, or a shilling issued by the East African Currency Board for so long as it is legal tender in Kenya in accordance with this Act;") , which shall be divided into one hundred cents. Section 19(2) Twenty shillings shall equal one Kenya pound.

Section 20. External value of theshilling Section The external value of the Kenya shilling ("a Kenya shilling as provided inof this Act, or a shilling issued by the East African Currency Board for so long as it is legal tender in Kenya in accordance with this Act;") shall be determined by the market. [Act No. 13 of 1978 , Sch., Act No. 20 of 1989 , Sch., Act No. 9 of 1996 , s. 10.]

Section 21. Use of Kenyashilling Section All monetary obligations or transactions entered into or made in Kenya shall be deemed to be expressed and recorded, and shall be settled, in Kenya currency ("the currency of Kenya or foreign currency;") unless otherwise provided for by law or agreed upon between the parties.

Section 22. Issue of notes and coins, legal tender, and withdrawal Section 22(1) The Bank shall have the sole right to issue notes and coins in Kenya and, subject to subsection (4), only those notes and coins shall be legal tender in Kenya: Provided that coins of a denomination of fifty cents shall be legal tender only for payments up to twenty shillings, and coins of a denomination of less than fifty cents shall be legal tender only for payments up to five shillings. Section 22(2) The denominations, inscriptions, forms, material and other characteristics of the notes and coins issued by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") shall be determined by the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") , and shall be notified in the Gazette and in other media of public information likely to bring them to the attention of the public. Section 22(3)(a) a notice published in the Gazette , and in such other manner as the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;...

Section 24. Exchange of mutilated notes and coins Section The Bank shall not be obliged to exchange any note or coin which is mutilated, defaced, soiled or otherwise defective, and the conditions subject to which the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") may as a matter of grace exchange any such note or coin shall be within the absolute discretion of the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") .

Section 25. Bills of exchange, promissory notes,etc Section 25(1) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for finance;") may, if the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") so recommends, by regulations published in the Gazette prohibit the issue by any person other than the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") of any bill of exchange, promissory note or similar instrument for the payment ("the transfer of currency for the purpose of discharging a liability, making a gift or donation or for creating a balance at a bank,financial institution or a microfinance bank which can be drawn upon;") of money to the bearer on demand, and any such regulations may make different provision for different cases or classes of case, and may impose penalties for any offence under the regulations of a fine not exceeding ten thousand shillings or of a term of imprisonment not exceeding two years, or of both such fine and imprisonment. Section 25(2) Subject to any regulations made under this section the issue of any such bill, note or instrument referred to in subsection (1) shall...

Section 26. Reserve of external assets Section 26(1)(a) gold; Section 26(1)(b) demand or time deposits with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents outside Kenya; Section 26(1)(b)(i) demand or time deposits with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents outside Kenya; Section 26(1)(b)(ii) documents and instruments customarily used for the making of payments or transfers in international transactions; Section 26(1)(b)(iii) notes or coins; Section 26(1)(c) convertible and marketable securities of, or guaranteed by, foreign governments or international financial institutions: Section 26(2) The Bank shall from time to time determine the type and form of convertible foreign exchange and the kinds of securities which may be held in the reserve of external assets pursuant to subsection (1) . Section 26(3) The Bank may include in its reserve of external assets any liquid external asset not included in subsection (1) , or any readily available international drawing facility, which the Ban...

Section 27. Dealings in gold and foreign exchange Section 27(1) The Bank may buy, sell, import, export, hold or otherwise deal in gold or foreign exchange under such terms and conditions as it shall determine: Provided that the buying and selling rates involved in such transactions shall be in accordance with international agreements to which Kenya is a party, or with which Kenya is associated. Section 27(2) The Bank may hold balances, denominated in foreign currencies, with foreign central banks or with the Bank ("the Central Bank of Kenya (or the Banki Kuu ya Kenya) established under;") ’s agents or correspondents abroad and, in its discretion, may invest such balances in marketable foreign securities denominated in convertible currencies. [Act No. 10 of 2006 , s. 51.]

Section 28. Institutions with which Bank may deal in foreign exchange Section authorized dealers;

Section 29. Relations with foreign central banks, foreign banks and foreign financial institutions Section The Bank may open accounts for and accept deposits from, collect money and other monetary claims for and on account of, foreign central banks, foreign banks and foreign financial institutions, and may generally act as banker to those banks or institutions.

Section 30.[Repealed by ActNo. 10 of 1995, s. 5]

Section 31.[Repealed by ActNo. 8 of 2008, s. 74]