CBK sets Sh1bn minimum capital for credit guarantee companies

The Central Bank Of Kenya.

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Credit guarantee companies operating in Kenya will need to raise a minimum capital of Sh1 billion and maintain capital adequacy ratios similar to those of banks, new draft regulations published by the Central Bank of Kenya (CBK) show.

The capital rules are meant to provide a stable base for the credit guarantee companies, which enable critical sectors such as the Micro, Small and Medium Enterprises (MSMEs) to access credit at affordable rates.

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