The draft Prudential Guidelines and Risk Management Guidelines issued by the Central Bank of Kenya (CBK) for all applicants intending to be licensed to conduct banking, mortgage or financial business in Kenya primary stakeholders and the public for review and comments will come into effect in August.

This Guidelines issued under Section 33(4) of the Banking Act, which empowers the Central Bank of Kenya to issue guidelines to be  adhered to by institutions in order to maintain a stable and efficient banking and financial system had been drafted for stake holders' scrutiny. CBK had set the deadline for submission of comments on the guidelines at 15th of June but later postponed it to 9th July to allow more stakeholders to submit their views.

Once comments are received and reviewed, the Central Bank will issue the revised Guidelines. The new Guidelines will now come into effect on 1st August 2012 and they apply to banks and their duly appointed agents.

This Guideline provides clear guidance on the conditions applicants must fulfill to be eligible to be granted a license to conduct banking, financial or mortgage business in Kenya. The Guideline does not however, address the authorization procedures for Representative Offices in Kenya, which are provided for in the Prudential Guideline on Representative Offices in Kenya.