Small lenders given three more years to meet core capital rule

Struggling commercial banks have been given a three-year extension to raise their minimum core capital to Sh10 billion, moving the deadline from 2029 to 2032. National Treasury CS John Mbadi also cancelled the phased annual targets. This reprieves 23 small lenders that were below the required threshold. Banks failing to meet capital requirements risk being downgraded to microfinance institutions.