Kenya Gives Banks More Time to Meet Core Capital Requirements

• CBK delays enforcement of Kes10 billion capital rule, allowing banks time to comply
• Analysts say high interest rates have made raising capital more difficult

Nairobi, Kenya – The Central Bank of Kenya (CBK) has ruled out shutting down commercial banks that have yet to meet new core capital requirements, offering lenders more time to raise the additional Kes2 billion mandated for this year. The changes, introduced last year, require banks to increase their minimum core capital from KES 1 billion to KES 10 billion to strengthen the stability of a sector that holds nearly KES 6 trillion in assets.