Four Banks Yet to Meet CBK’s Sh3 Billion Capital Rule

Kenya’s banking sector has largely complied with the Central Bank of Kenya’s (CBK) latest capital requirement, with 34 out of 38 licensed commercial banks meeting the newly introduced Sh3 billion minimum core capital threshold.

The requirement was introduced under the Business Laws (Amendment) Act, 2024, which raised the minimum core capital that commercial banks must maintain. CBK Governor Kamau Thugge has maintained that lenders that fail to meet the requirement will not receive any extension or grace period.

Latest data from the CBK and financial disclosures show that four banks remained below the Sh3 billion minimum core capital threshold at the start of the year, while the rest of the industry had either surpassed the requirement or successfully raised additional capital to comply.

Four Banks Yet to Meet CBK Core Capital Requirement

The four lenders that have not met CBK’s Sh3 billion minimum core capital requirement are:

• Consolidated Bank of Kenya
• Credit Bank PLC
• Development Bank of Kenya
• Access Bank Kenya

The disclosure comes as CBK continues monitoring compliance across the banking sector. While Governor Thugge recently indicated that about three lenders were being supported through fresh capital injections, quarterly disclosures show that four institutions were below the required floor at the beginning of the year.

Banks that remain below the threshold are expected to secure additional shareholder funding or explore other capital-raising options to meet regulatory requirements.

Major Banks Exceed Sh3 Billion Capital Threshold

Most Tier 1 and Tier 2 lenders continue to maintain capital levels well above the regulatory minimum. Among the banks that have met CBK’s Sh3 billion capital rule are:

• KCB Bank Kenya
• Equity Bank Kenya
• Co-operative Bank of Kenya
• NCBA Bank Kenya
• Absa Bank Kenya
• Stanbic Bank Kenya
• Standard Chartered Bank Kenya
• Diamond Trust Bank Kenya
• I&M Bank
• Family Bank
• National Bank of Kenya
• Citibank N.A. Kenya
• Prime Bank
• Gulf African Bank

These institutions hold capital buffers comfortably above the regulatory minimum and are not expected to face immediate pressure from the current requirement.

Smaller Banks Raise Capital to Comply

Several Tier 3 lenders also managed to meet the Sh3 billion core capital requirement through shareholder support and capital injections.

They include:

• ABC Bank
• CIB Kenya
• M-Oriental Commercial Bank
• Middle East Bank Kenya
• Premier Bank
• UBA Kenya
• Paramount Bank
• Sidian Bank
• Victoria Commercial Bank
• Bank of India Kenya
• DIB Bank Kenya
• Kingdom Bank
• Guardian Bank
• Habib Bank AG Zurich
• Ecobank Kenya
• Mayfair CIB Bank
• Transnational Bank

Many of these lenders remain smaller in size compared to Kenya’s leading commercial banks, but have so far managed to comply with the CBK’s capital requirement roadmap.

Banks Face Higher Capital Targets From 2026

Meeting the Sh3 billion minimum core capital threshold is only the first stage of a wider capital strengthening programme introduced by the regulator.

Under the roadmap, commercial banks will be required to progressively increase their core capital over the next four years.

The next deadline arrives in December 2026 when banks will be required to hold at least Sh5 billion in core capital.

Current industry data shows that 15 lenders remain below that upcoming threshold. Those institutions will need to raise additional capital, attract new investors, or pursue mergers and acquisitions if they are to meet the next regulatory milestone.