On 6th July 2026, H.E. President Dr. William Ruto signed the Central Bank of Kenya (Amendment) Act, 2026 into law, introducing the most significant reforms to Kenya’s banking framework in years.
Here’s what’s changed:
🔹 A new, clearly defined Emergency Liquidity Assistance (ELA) framework; separate from routine CBK lending;
🔹 Emergency support is no longer automatic: institutions must prove solvency, viability and systemic importance;
🔹 The support window is capped at 5 years, up from the original Bill’s proposed 12 months;
🔹 Expanded CBK powers to deal in gold and other precious metals, opening doors for licensed miners, refiners and financiers;
🔹 Deputy Governor appointments now require National Assembly approval; and
🔹 The Kenya Deposit Insurance Corporation is formally recognised in law For banks, microfinance institutions and investors, this isn’t just regulatory housekeeping; it reshapes how liquidity support works and what boards need to have in place before a crisis hits.
Our latest Legal Digest breaks down all 8 key changes and what regulated institutions should be doing right now. Read the full analysis below.
