The Central Bank of Kenya (CBK) is now seeking the help of the International Monetary Fund (IMF) as it looks to tighten its leash on commercial banks’ exposure to foreign currency-denominated obligations.
This comes at a time when the CBK disclosed that for the period ended December 2023, three banks were in violation of the Prudential Guideline on Foreign Exchange Exposure which requires lenders to maintain foreign exchange exposure at no more than 10 percent of their core capital. In 2021, only one bank was reported to be in violation of the forex exposure rules.
