14 Banks face downgrade as CBK enforces KSh 5 Billion capital requirement by December 2026

Fourteen commercial banks in Kenya are facing pressure to raise their minimum core capital to KSh 5 billion by December 31, 2026, or risk regulatory action, including possible reclassification as microfinance banks and restrictions on certain banking services.The warning comes as the Central Bank of Kenya (CBK) maintains its position that lenders must comply with the new capital requirements despite proposals by the National Treasury to extend the implementation deadline.