The Central Bank of Kenya (CBK) has issued a new directive to 24 banks, ordering them to submit capital enhancement plans following new regulations requiring lenders to increase their minimum core capital from Sh1 billion to Sh10 billion over five years.
The Business Laws (Amendment) Act, 2024 establishes a graduated increase schedule, starting with Sh3 billion by 2025 and reaching Sh10 billion by 2029.
As of September, 12 banks had core capital below Sh3 billion, with another 12 falling short of the Sh10 billion target, including Access Bank Kenya and HF Group. CBK Governor Kamau Thugge indicates this regulatory change could trigger industry consolidation through mergers and acquisitions.
