The Central Bank of Kenya announced it will lift the moratorium on licensing new commercial banks, with effect from 1 July 2025, ending a pause that has been in place since 17 November 2015. New entrants will be required to demonstrate they can meet the enhanced minimum core capital requirement of KES 10 billion. The moratorium was introduced against a backdrop of governance, risk management and operational challenges and was intended to provide space for strengthening the banking sector. The central bank pointed to progress in the legal and regulatory framework, sector consolidation through mergers and acquisitions, and the entry of domestic and foreign strategic investors, alongside the higher core capital threshold introduced by the Business Laws (Amendment) Act, 2024.
Central Bank of Kenya 2025-04-16
Central Bank of Kenya to lift moratorium on licensing new commercial banks from 1 July 2025 with KES 10 billion core capital requirement
The Central Bank of Kenya will lift the moratorium on licensing new commercial banks from 1 July 2025, ending a pause since November 2015. New banks must meet an enhanced minimum core capital requirement of KES 10 billion. The decision follows improvements in governance, risk management, and sector consolidation, supported by the Business Laws (Amendment) Act, 2024.