Nairobi, June 14 -- The Central Bank of Kenya (CBK) is set to remove limits on emergency loans issued to banks in distress, including extending the duration of medium-term facilities offered under the liquidity support framework.

The proposed amendments to the CBK Act are set to enhance the apex bank's role in supporting commercial banks in distress for reasons outside of mismanagement.

The CBK (Amendment) Bill 2026 seeks to have the regulator extend the tenor of loans offered from six to 12 months and beyond as per its discretion.

The CBK provides liquidity to commercial and microfinance banks as a lender of last resort to ensure the sector's stability.

The apex bank made Sh56.5 billion in securities and advances to banks in 12 month...