President William Ruto signs the Central Bank of Kenya (Amendment) Bill, 2026, and the Parliamentary Pensions (Amendment) Bill, 2023, into law during a ceremony at State House, Nairobi, on July 6, 2026/PCS
President
William Ruto has signed into law the Central Bank of Kenya (Amendment) Bill,
2026, introducing reforms aimed at strengthening the Central Bank of Kenya's
oversight of the financial sector, enhancing monetary policy operations and
improving the country's preparedness for financial crises.
The new law establishes a separate legal framework for the Central Bank's routine monetary policy operations and Emergency Liquidity Assistance (ELA), ensuring emergency support is only extended to banks that meet strict conditions on solvency, viability and systemic risk.
"Assented the Central Bank of Kenya (Amendment) Bill, 2026, ushering in sweeping reforms aimed at strengthening the CBK’s capacity to safeguard financial stability, improve banking oversight, and modernise the country’s monetary policy framework," Ruto said.
According to the President, the reforms will improve Kenya's response to financial crises while protecting taxpayers and the banking sector.
"The new law introduces a distinct legal framework separating the Central Bank’s routine monetary policy operations from Emergency Liquidity Assistance (ELA). The move will improve Kenya’s preparedness to respond to financial crises while protecting taxpayers and the banking sector," he said.
The legislation also elevates financial system stability and sound banking regulation as secondary objectives of the Central Bank, while maintaining price stability as its primary mandate. It further requires nominees for the position of Deputy Governor to be vetted and approved by the National Assembly before appointment, strengthening parliamentary oversight.
Ruto also signed the Parliamentary Pensions (Amendment) Bill, 2023, saying it aligns the parliamentary pension framework with the Constitution and extends benefits to both Members of the National Assembly and the Senate.
"The legislation updates the Parliamentary Pensions Act of 1983... and ensures senators are entitled to benefits under the same framework as MPs," the President said.
President William Ruto hands over the signed Central Bank of Kenya (Amendment) Bill, 2026, to Deputy President Kithure Kindiki during the assent ceremony at State House, Nairobi on July 6, 2026/PCS
President William Ruto, Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetang'ula and other parliamentary and government officials, after signing the Central Bank of Kenya (Amendment) Bill, 2026, and the Parliamentary Pensions (Amendment) Bill, 2023, into law at State House, Nairobi on July 6, 2026/PCS
President William Ruto, Deputy President Kithure Kindiki, National Assembly Speaker Moses Wetang'ula and other parliamentary and government officials during the bill signing ceremony at State House, Nairobi on July 6, 2026/PCS
