At least half of Kenya’s 14 microfinance banks face pressure to raise an estimated Sh2.9 billion to meet newly proposed minimum core capital requirements by the Central Bank of Kenya(CBK), signalling a fresh wave of mergers and acquisition deals in the lending sub-sector.
The new Microfinance Bill 2026 proposes to raise the core capital floor for micro lenders to Sh250 million, up from Sh60 million. The micro-banks are expected to comply with the new capital requirements within five years after the government-sponsored Bill is passed in Parliament.
