The government of Kenya has lifted a moratorium on licensing of commercial banks that has been in place for about 10 years, paving the way for new entrants.
In a public notice, the Central Bank of Kenya says investors can apply to start commercial banks in Kenya with effect from 1st July 2025.
The moratorium was placed in November 2015 on account that there were too many small banks. At the time, the Central Bank of Kenya encouraged investors to either acquire or invest in existing banks.
“Following the lifting of the moratorium, new entrants to the Kenyan banking sector will be required to demonstrate that they can meet the enhanced minimum capital requirements of Ksh 10 billion. Stronger and more resilient banks will be able to navigate the growing risks in the global, regional, and domestic arenas,”says the Central Bank of Kenya.
