The central bank governor has on Thursday revealed that they are set to raise capital requirements for commercial banks in the country.
The central bank governor Kamau Thugge elaborated that, the move is to account for emerging risks in various sectors among them being communication technology and climate change.
“The capital requirements for banks need to be increased. We have seen increased risks whether it is from climate change or cyber security…..We need strong banks,”
According to central bank reports, non-performing loans in the banking sector had increased by 15.5% of total loans in February 2024 from last year’s 14.8% .
In line with the legal requirements, the proposal to raise the capital will be published in the coming month.
The minimum funding level is currently at 1 billion shillings.
Kenya set to increase capital requirements for commercial banks