Kenya eyes 10-fold jump in minimum bank capital to boost lenders
Kenya plans to raise the minimum capital requirement for the country’s banks 10-fold to 10 billion shillings ($78 million), Treasury Secretary Njuguna Ndung’u said.
He presented the strategy in his budget speech to lawmakers in capital, Nairobi.
The East African nation has contemplated tightening capital rules for some months to protect lenders against risks and bolster them for regional expansion.
Central bank Governor Kamau Thugge in April said he favored such a move, adding that increased risks ranging from climate change to cyber security required stronger banks for resilience.
The proposal could kick off consolidation or share offers in Kenya’s banking sector, with some lenders choosing to downgrade their banking licenses.
