11 BANKS RISK LOSING LICENSES AS CBK ISSUES WARNING

The Central Bank of Kenya (CBK) has warned that 11 commercial banks could lose their licenses if they fail to raise a combined KSh15 billion in core capital by December 2025.
According to CBK, the lenders are struggling to meet the revised minimum core capital requirement of KSh3 billion, up from KSh1 billion, as mandated under the Business Laws (Amendment) Act of 2024.
The affected banks include Paramount Bank, M Oriental, ABC Bank Kenya, Premier Bank, CIB International Bank, Middle East Bank Kenya, Development Bank of Kenya (DBK), UBA Kenya Bank, Credit Bank PLC, Access Bank Kenya, and Consolidated Bank of Kenya.
Consolidated Bank faces the biggest shortfall at KSh3.7 billion, followed by Access Bank Kenya at KSh3.4 billion, Credit Bank PLC at KSh1.72 billion, and UBA Kenya at KSh1.51 billion.
CBK has urged the lenders to explore measures such as stake sales, mergers, rights issues, or fresh capital injections from parent companies. UBA Kenya Bank has already begun seeking capital support from its parent, UBA PLC in Nigeria.
The regulator emphasized that failure to comply with the capital adequacy rules could result in the withdrawal of licenses, warning that only well-capitalized banks will be allowed to continue operations.