Kenyan President William Ruto has signed the Central Bank of Kenya (Amendment) Bill, 2026 into law, introducing wide-ranging reforms aimed at strengthening the country's financial system, enhancing banking oversight, and modernizing monetary policy.

The new legislation reinforces the Central Bank of Kenya's role in safeguarding financial stability while maintaining price stability as its primary mandate. Financial system stability and sound banking regulation are now recognized as secondary objectives, formally expanding the central bank's responsibilities in ensuring a resilient financial sector.

A key provision of the law establishes a separate legal framework for Emergency Liquidity Assistance, distinguishing it from the bank's routine monetary policy operations. The reform is designed to improve Kenya's ability to respond to financial crises while protecting taxpayers and the banking sector.

Under the new framework, emergency liquidity support will only be available to banks that meet strict requirements on solvency, long-term viability and systemic importance, limiting extraordinary interventions to genuine financial emergencies.

The amendments also strengthen governance at the central bank by requiring nominees for the position of deputy governor to be vetted and approved by the National Assembly before appointment, bringing the process in line with that of the governor and enhancing parliamentary oversight.

The legislation further provides statutory backing for the Central Bank of Kenya Institute of Monetary Studies, allowing the institution to expand collaboration with national, regional and international partners on research, training and capacity building.

The law also clarifies the central bank's authority to buy and hold gold and other precious metals as part of the country's foreign exchange reserves, a move the government says will support the growth of Kenya's mining sector while aligning reserve management practices with countries including Tanzania, Ghana and South Africa.