CBK mulls over raising banks’ core capital

What you need to know:

  • The CBK is considering raising the capital requirements for Kenyan banks to be at par with those in South Africa, Egypt, Angola, and Nigeria.
  • The move, which may force banks to retain more of their shareholder funds or go into debt, is aimed at positioning them well to tap the growing opportunities arising from ongoing big infrastructure projects and the natural resources being exploited, without facing substantial credit risk that may affect the industry.

Commercial banks will be hard-pressed to meet new capital requirements which the Central Bank of Kenya is considering.

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