President Ruto Assents to CBK Amendment Bill 2026 [Details]

President William Ruto, on Monday, July 6, assented to two new laws at State House, Nairobi.  

In a statement, President Ruto said he signed the Central Bank of Kenya (CBK) Amendment Bill, 2026 and the Parliamentary Pensions Amendment Bill, 2023. 

The Head of State explained that the CBK Amendment Bill 2026 will strengthen CBK’s capacity to safeguard financial stability, improve banking oversight, and modernize the monetary policy framework

Ruto noted that the law introduces a distinct legal framework separating CBK’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,” said Ruto. 

Under the amendment law, ELA will only be extended to banks that meet strict conditions on solvency, viability, and systemic risk. 

President Ruto mentioned that the provision aims to separate ordinary liquidity management from extraordinary interventions during periods of financial distress.

The legislation also expands the CBK's mandate by making financial system stability and sound banking regulation secondary objectives of the institution, while retaining price stability as its primary responsibility.

Further, the amendment introduces governance reforms by requiring nominees for the position of Deputy Governor to undergo vetting and approval by the National Assembly before appointment. 

Previously, parliamentary approval was only required for the appointment of the CBK Governor.

The new law also gives statutory backing to the CBK’s training mandate through the Central Bank of Kenya Institute of Monetary Studies and provides a legal framework for collaboration with national, regional, and international institutions to enhance knowledge sharing and cross-border cooperation.

In addition, the amendment clarifies the CBK's authority to buy, sell, and hold gold and other precious metals as part of the country's foreign reserve management. 

“This will support growth of Kenya’s mining sector and aligns Kenya with practices in Tanzania, Ghana, and South Africa,” Ruto said. 

President Ruto also signed the Parliamentary Pensions Amendment Bill, 2023, which is aimed at introducing reforms that align the parliamentary pension framework with the Constitution and extend benefits to both Members of the National Assembly and the Senate.

According to the President, the new law formally recognizes both the National Assembly and the Senate in the administration of parliamentary pensions and ensures senators are entitled to benefits under the same framework as MPs.

“Among the major reforms, the law redefines “child” to mean a person below 18 years, up from 16 years, to conform with the Constitution.

“The Act further reconstitutes the Parliamentary Pensions Management Committee and the Appeals Committee to include representation from both Houses, reflecting Kenya’s bicameral structure,” Ruto highlighted. 

He also pointed out that the amended law retains gratuity payments only for legislators who serve less than five years in line with the government's public service pension policy.

This comes a week after President Ruto signed the County Allocation of Revenue Bill 2026 into law. 

The Head of State assented to the legislation on Monday, June 29, during a ceremony at State House, Nairobi. 

The bill was introduced in the Senate by Mandera Senator Ali Roba, who is the chair of the Senate Finance and Budget Committee. 

Highlighting the bill, Senate Clerk Jeremiah Nyegenye said it outlines the amount of money each county will receive from the Consolidated Fund. 

“The bill sets out in a schedule the respective share of each county and requires the Cabinet Secretary for Treasury to publish a schedule setting out the transfers that will be made to the counties from the consolidated fund upon the enactment of the bill,” said Nyegenye. 

The Senate Clerk added that the County Allocation of Revenue Bill sets expenditure ceilings for recurrent spending by each county. 

“The bill also sets out budget ceilings for recurrent expenditure for each county. This is intended to ensure there is a fair balance between recurrent expenses and development expenditure,” he noted.