The Central Bank of Kenya has said it will lift the moratorium on licensing of new commercial banks on July 1, 2025, which may see more lenders enter the market.
The moratorium, which has been in place from November 17, 2015, was imposed against a backdrop of governance, risk management, and operational challenges in the banking sector.
The lifting of the moratorium paves way for new players to enter the banking sector, provided they demonstrate that they can meet the enhanced minimum capital requirements of Sh10 billion "Following the lifting of the moratorium, new entrants to the Kenyan banking sector will be required to demonstrate that they can meet the enhanced minimum capital requirements of Sh10 billion," CBK said in a public notice yesterday.
The moratorium was intended to provide space for the strengthening of the Kenyan banking sector. "Since then, significant strides have been made in strengthening the legal and regulatory framework for Kenya's banking sector.
