Eleven commercial banks in Kenya are under pressure to raise a combined Ksh15 billion by December 2025 in order to comply with the new minimum capital requirements set by the Central Bank of Kenya (CBK). The directive compels tier III lenders to increase their core capital to Ksh3 billion, up from the current Ksh1 billion, within less than four months.
The institutions affected include Paramount Bank, M-Oriental, ABC Bank Kenya, Premier Bank, CIB International Bank, Middle East Bank Kenya, Development Bank of Kenya (DBK), UBA Kenya, Credit Bank Plc, Access Bank Kenya, and the state-owned Consolidated Bank of Kenya.
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For some, compliance will rely heavily on financial backing from parent companies abroad. However, for locally controlled banks, the challenge is more daunting, as they face capital shortfalls ranging between Ksh260 million and Ksh3.7 billion. This will likely force them to consider urgent measures such as mergers, strategic partnerships, rights issues, or fresh capital injections from investors.
The CBK has maintained that the higher capital thresholds are necessary to strengthen the resilience of Kenya’s banking sector, enhance depositor protection, and ensure lenders are better prepared to withstand economic shocks.
For customers, however, the race to meet the capital targets raises concerns about possible disruptions. Smaller banks struggling to comply may be forced into mergers or acquisitions, potentially leading to changes in service accessibility, loan availability, or branch networks.
Failure to raise the required funds by the December deadline could see the CBK revoke licenses of non-compliant banks, reshaping Kenya’s financial landscape.
