Banks will have up to eight years to raise their minimum statutory capital to at least Sh10 billion, if Parliament approves select committee’s proposal to more than double the compliance period to help small lenders conform without strain.
The Parliamentary committee on finance and national planning has agreed with Kenya Bankers Association (KBA) that requiring banks to increase the minimum or core capital from the current minimum of Sh1 billion to Sh10 billion within three years as proposed in the Business Laws (Amendment) Bill, 2024 will put a strain on small banks and hurt their ability to lend.
