Mergers, buyouts loom as 12 banks seek fresh capital

The country’s banking sector has significantly transformed since 2012 when the Sh1 billion minimum capital was introduced.

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Twelve banks, including Housing Finance Company (HFC), Access Bank Kenya and Credit Bank, face a race against time to raise about Sh11.85 billion fresh capital by end of next year or opt for mergers and acquisitions if President William Ruto signs a new Bill into law.

The Bill, passed by Parliament last week, seeks to raise banks’ minimum capital ten-fold to Sh10 billion within five years.

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