The main challenges facing the Banking sector today include;
New regulations; For instance, the Finance Act 2008, which took effect on 1 January 2009 requires banks and mortgage firms to build a minimum core capital of KShs 1 billion by December 2012. This requirement, its hoped, will help transform small banks into more stable organisations. The implementation of this requirement poses a challenge to some of the existing banks and they may be forced to merge in order to comply.
Global financial crisis experienced in late 2008 is expected to affect the banking industry in Kenya especially in regard to deposits mobilisation, reduction in trade volumes and the performance of assets.