CBK Lifts Decade-Long Ban on New Bank Licenses

The Central Bank of Kenya will lift its 10-year moratorium on new commercial bank licenses on July 1. The moratorium was put in place in 2015 due to governance and management challenges. Recent regulatory improvements and increased minimum capital requirements aim to strengthen Kenya’s banking sector.

The Central Bank of Kenya (CBK) has announced the end of its decade-long moratorium on issuing new commercial bank licenses, effective July 1.

This prohibition, initiated in 2015 due to governance and risk management shortcomings, was lifted following significant legal and regulatory improvements in the banking sector.

The CBK also highlighted a significant increase in minimum core capital requirements for banks, now set at 10 billion Kenyan shillings ($77 million), as a critical step in fortifying the sector's stability and soundness, further reinforcing the banking framework.

(With inputs from agencies.)