The 1988 Accord was later amended in 1996 to incorporate a capital charge for the market risk, which we in Kenya and other Central Banks in the region have not adopted. In 2004, the Basel Committee issued the Basel II Capital Accord which, in addition to credit and market risk, introduces a capital charge for operational risks that banks face.
The Accord took effect from the beginning of 2007 in G10 countries. However, the committee recognises that emerging countries such as Kenya will not be able to implement this accord in 2007 as they are yet to fulfill the prerequisites of the new Accord.