Law & Regulation
Central Bank of Kenya Act
The Act establishes the Central Bank of Kenya and its principal mandate, governance and powers in relation to monetary policy, currency, reserves, financial-system functions and foreign-exchange administration. It is the canonical Country Profile framework for Foreign Exchange / Capital Controls.
Legal Significance
What This Instrument Does
It constitutes the Bank, defines its objectives and institutional powers, establishes monetary-policy and currency functions, and provides the statutory foundation for regulation and administration of foreign-exchange dealings. Detailed operational requirements may also be found in regulations, directions and authorised-dealer practice and must be verified for the transaction concerned.
Why It Matters
Infrastructure financing can involve foreign-currency borrowing, equity inflows, offshore payments, hedging and repatriation. The Act frames the public authority and legal basis for the relevant monetary and foreign-exchange environment, but it should not be used to invent a blanket approval requirement or restriction where the operative rules do not support one.
Key Provisions
- Establishment and objectives
Defines the Bank's legal identity and core public mandate.
- Governance and accountability
Allocates decision-making and oversight within the institution.
- Monetary policy
Supplies the statutory basis for price-stability and monetary-policy functions.
- Currency issuance
Governs the national currency and the Bank's issuance role.
- Banker to government and banks
Supports settlement, fiscal-agent and financial-system functions.
- Reserve management
Enables holding and management of official foreign reserves.
- Foreign-exchange authority
Provides the primary statutory anchor for regulating or administering foreign-exchange transactions.
- Authorised-dealer architecture
Supports implementation through regulated financial institutions where the operative framework so provides.
- Information and returns
Enables collection of financial and foreign-exchange information for statutory purposes.
- Directions and instruments
Permits use of subordinate or administrative tools within delegated authority.
- Financial-system stability functions
Connects central-bank powers to wider supervision and market resilience.
- Offences and enforcement
Protects the statutory monetary and foreign-exchange framework.
When You Would Use This
Analysing foreign-currency flows
Payment and repatriation structures
Authorised-dealer interfaces
Central-bank powers
Monetary-system risk
The statutory basis for a CBK direction
Confirm current operational rules separately
InfraLex Relevance
Primary / Framework for both Banking & Finance and Foreign Exchange / Capital Controls. For CountryLegalCoverage, Foreign Exchange now resolves to this Act alone; the Banking Act remains supporting and operationally connected.
Legal Framework Position
- Banking & FinancePrimary / Framework Instrument
- Foreign Exchange / Capital ControlsPrimary / Framework Instrument
Instrument Overview
- Official Citation
- Act No. 15 of 1966
- Instrument Type
- Law / Act
- Source Language
- English
- Last Verified
- 6 September 2026