On Apr. 16, KEN CB announced lifting of moratorium re new banks.
KEN CB announced that it will lift the moratorium on licensing new commercial banks effective Jul. 1, 2025; the moratorium has been in effect since Nov. 17, 2015.
Moratorium
Imposed against backdrop of challenges in the sector, incl operational, governance.
It was intended to provide space for the strengthening of the Kenyan banking sector.
Since, substantial progress made in strengthening the legal and regulatory framework.
Notably, there have been a number of mergers and acquisitions by existing players and entry of new domestic and foreign strategic investors into the banking sector.
New Requirements
The increase, in Business laws (amendment) act, 2024, of minimum core capital requirements for commercial banks to Ksh.10bn will reinforce strengthening of sector.
Following the lifting of moratorium, new entrants to the sector will be required to demonstrate they can meet enhanced minimum capital requirements of Ksh.10 bn.
Stronger and more resilient banks will be able to navigate the growing risks in the global, regional, and domestic arenas; additionally, they will be able to support large scale financing needs to meet Kenya’s development aspirations.
