Kenya’s banking sector is entering a new era of reform. The Business Laws (Amendment) Act, 2024 mandates a phased increase in minimum core capital—from KES 1 billion to KES 10 billion by 2029. This bold regulatory shift is designed to strengthen financial stability, curb rising non-performing loans, and enhance banks’ resilience in a challenging economic environment.
But what does this mean for banks that fall short of the new thresholds? And how can they respond?
In this newsletter, the PwC Deals team breaks down the rationale behind the capital increase, the impact on banks, and the strategic options available—from equity raising and mergers to restructuring and divestment. We also explore investor opportunities and regulatory implications that could reshape the future of banking in Kenya.
Contact us
Partner | Deals - Transaction Advisory, Infrastructure Industry Leader, PwC Kenya
Tel: +254 (20) 285 5000
Partner | Deals, Performance and Restructuring Services Leader, East Africa region, PwC Kenya
Tel: +254 (20) 285 5000
Lenny Kimaiyo
Senior Associate | Business Restructuring Services , PwC Kenya
Tel: +254 20 2855000