CBK Lifts Decade-Long Moratorium on New Bank Licenses

The Central Bank of Kenya (CBK) has announced it will lift its decade-long moratorium on licensing new commercial banks, effective July 1, 2025. The moratorium, imposed in 2015 to address governance, risk management, and sector instability, allowed time for significant reforms, including tighter regulations and sector consolidation. As part of the new framework, prospective banks must now meet an increased minimum core capital requirement of KSh 10 billion, a move designed to ensure entrants are financially robust and to prevent undercapitalized institutions. CBK highlights that these changes are expected to foster a stronger, more resilient banking sector capable of weathering global and local economic challenges. The lifting of the moratorium is also anticipated to encourage competition and support broader access to financial services, aligning with Kenya’s economic development goals. The decision reflects growing sector stability and the successful entry of new investors through mergers and acquisitions in recent years.