The Central Bank Of Kenya has ordered all commercial Banks operating in Kenyan soil to disclose and regularly update their top shareholders on their websites by 1st August of this year.
The move by the CBK comes at a time when some local banks recently fell into troubles with most of the issues related to poor corporate governance.
Related; CBK Orders Special External Audit on Insider Lending By Banks
The Central Bank Governor Dr Patrick Njoroge said the move will ensure there’s transparency in ownership of the lenders which will in turn drive public confidence. The governor also said that the lenders will need to regularly update their shareholding including those who hold atleast 5% of the bank.
Term Limits
Currently, its only listed banks that update their shareholding structure on a monthly but the unquoted banks don’t reveal this information. The governor also said that they are considering introducing term limits for senior excutives of the banks in order to strengthen governance of kenyan banks.
