CBK Moves to Update Kenya’s Banking Laws For Digital Era

Kenya’s banking laws are set for a major review after the Central Bank of Kenya (CBK) announced plans to amend key legislation governing the sector. The regulator is seeking legal consultants to review the Central Bank of Kenya Act and the Banking Act, with the aim of updating them to reflect changes in the financial industry.

CBK says the laws need to match the growth of digital banking, fintech services, stronger consumer protection demands and rising cybersecurity risks.

Under the plan, the selected consultant will conduct a full legal audit to identify gaps and inconsistencies in the current laws. The assignment will also involve drafting proposed amendments, carrying out stakeholder consultations and preparing a regulatory impact assessment.

The review will take eight months to complete. Payments to the consultant will be made in phases based on agreed milestones, starting with an inception report and ending with the final legal drafts. Bids for the consultancy are expected to be submitted by March 9, 2026.

AThe move signals CBK’s intention to strengthen the legal framework guiding banks and financial institutions as digital and technology-driven services continue to reshape the sector.