Banks in Kenya will now be expected to disclose shareholders with more than 5 percent stake according to the new banking regulations.
Central Bank of Kenya (CBK) Governor Dr Patrick Njoroge says the new regulations will see lenders disclose vital details of the shareholders in order to foster transparency in the banking industry.
“Banks are now required to disclose details of significant shareholders who own five percent or more on their shareholding on their website at a minimum, the names, shareholding levels, and composition of local and foreign ownership and group structures for banking groups should be disclosed,” said Njoroge.
The disclosure of banks shareholder’s details is meant to signal adherence to corporate governance as well as instill confidence and stability in specific banks and the sector as a whole.
Njoroge also said CBK will cap the tenure of chief executives to ensure the robustness of banks while enhancing safe banking practices.
The move comes as the banking regulator moves to strengthen corporate governance within banking institutions as cases of poor financial practices emerge.