The Central Bank of Kenya (Amendment) Act, 2026, which received presidential assent on Monday, introduces a rigorous formal framework governing Emergency Liquidity Assistance (ELA). Under this new legislation, banks seeking emergency financial support from the regulator must now prove they are fundamentally sound to qualify for any rescue funding. Specifically, the law mandates that only solvent, commercially viable institutions whose failure could threaten the wider financial system are eligible for such liquidity. These significant reforms aim to align Kenya's financial stability framework with international banking standards while preventing public resources from propping up weak lenders. This legislative shift follows the government's recent decision to extend the Sh10 billion core capital requirement for banks until 2032, representing a major overhaul of the nation's banking safety net and lender-of-last-resort interventions.