Regulating Kenya’s too-big-to-fall banks right step

The Central Bank of Kenya has proposed a framework to identify and regulate Domestic Systemically Important Banks (D-SIBs) to prevent failures that could disrupt the economy. This framework is inspired by the model of Globally Systemically Important Banks (G-SIBs) established after the 2007/09 financial crisis. Kenya, with a capital adequacy ratio of 20% in June 2026, enters this new regulatory phase from a position of strength.