CBK differs with Mbadi on Sh10bn banks’ capital rule

The Central Bank of Kenya (CBK) has told banks to follow the original schedule for raising minimum core capital: Sh5 billion by the end of 2026, followed by Sh6 billion in 2027, Sh8 billion in 2028 and Sh10 billion in 2029. This conflicts with Treasury Cabinet Secretary John Mbadi’s proposal for a single December 2032 deadline, which scrapped the phased increases. CBK Governor Kamau Thugge said banks below the Sh5 billion threshold must submit written plans explaining how they will meet the year-end target. At the end of June, 14 banks were below that threshold, while seven had not met the Sh3 billion minimum set for the end of 2025.