Eleven Kenyan commercial banks must collectively raise about Ksh 15 billion in core capital before the end of December 2025 to meet the Central Bank of Kenya's new minimum requirement, or risk losing their licences, Business Daily reported on 2 September 2025.
The shortfall arises from the Business Laws (Amendment) Act 2024, which raises the minimum core capital for commercial banks from Ksh 1 billion to Ksh 3 billion by the end of 2025. The Ksh 3 billion threshold is the first step in a phased increase that will take the minimum to Ksh 10 billion.
OPTIONS FOR SMALLER LENDERS
The banks below the threshold can close the gap through stake sales, rights issues to existing shareholders, mergers, or capital injections from parent companies. For Tier III lenders, the new minimum triples the core capital they were previously required to hold, and the December deadline leaves them about four months to complete any capital raising.
SUPERVISORY FOLLOW-UP
The Central Bank of Kenya had written in February 2025 to 13 commercial banks with core capital below Ksh 3 billion, asking them to explain how they planned to meet the new requirements. Eleven of those banks were below the Ksh 3 billion level, while two, Consolidated Bank and Spire Bank, were in breach of the existing Ksh 1 billion minimum at the time.
In April 2025, CBK governor Kamau Thugge said 22 banks had submitted capital-raising plans to the regulator, while two foreign-owned subsidiaries had requested an extension. “Since they are foreign-owned subsidiaries, we expect they'll be able to secure the required capital,” he said at the time.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn