Micro-finance banks face higher capital buffer rules

A customer at a SMEP branch. FILE PHOTO | NMG

Micro-finance banks face additional capital requirements to provide a buffer against potential financial downturns in the first comprehensive review of the sector in years.

A Central Bank of Kenya (CBK) backed inquiry has recommended that capital ratios of the micro-finance banks (MFBs) should be raised to a yet-to-be-established threshold.

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