The Central Bank of Kenya has published a consultative paper and draft regulations for public comment on a proposed overhaul of commercial bank licence fees. The proposal would replace a fee structure that has been in place for over 30 years with a framework intended to align with international standards and modern banking dynamics, and to better cover rising supervisory and regulatory costs linked to more complex oversight, including consolidated and cross-border supervision. After reviewing approaches used by domestic regulators and selected international jurisdictions, the paper proposes adopting a Gross Annual Revenue methodology with a 1 percent fee rate, to be prorated over three years. Stakeholders have 21 days to submit comments, with feedback requested by March 31, 2025.
Central Bank of Kenya 2025-03-10
Central Bank of Kenya launches consultation on revised commercial bank licence fees based on a 1 percent gross annual revenue model
The Central Bank of Kenya has released a consultative paper and draft regulations proposing a new framework for commercial bank licence fees. The overhaul aims to align with international standards and address rising supervisory costs, introducing a Gross Annual Revenue methodology with a 1 percent fee rate. Stakeholders are invited to submit comments on the proposal.