The Central Bank of Kenya is pressing commercial banks to meet a KSh5 billion minimum core capital target by the end of 2026, and has asked a small number of lenders to detail how they will achieve it.

Governor Kamau Thugge told the National Assembly’s Finance and Planning Committee that one or two banks could find the target challenging, but the regulator’s engagement is focused on those specific institutions.

The CBK has formally written to the National Treasury explaining why it believes banks need stronger capital bases, highlighting risks such as climate shocks and cyber‑attacks.

The push for the KSh5 billion threshold follows the Business Laws (Amendment) Act 2024, which set a phased increase toward a KSh10 billion minimum by December 2029.

The Finance Act 2026 later altered the schedule, removing annual milestones and extending the final KSh10 billion deadline to 31 December 2032 to ease pressure on credit delivery.

Treasury Cabinet Secretary John Mbadi has said the government supports stronger bank capitalisation but wants a transition that safeguards lending to micro, small and medium enterprises and niche‑market lenders.

In addition to the capital target, the CBK has proposed prudential measures such as capital conservation rules and extra supervisory requirements for systemically important banks.