CBK and Treasury clash over bank capital deadlines and the Ksh10 billion target

The Central Bank of Kenya has told banks to follow existing capital rules, while the Treasury has proposed a later deadline.

What happened

The Central Bank of Kenya (CBK) has directed commercial banks to ignore Treasury proposals that would extend the Ksh10 billion minimum core capital deadline to 2032, insisting that lenders follow the existing law [3]. Treasury CS John Mbadi had proposed removing the annual milestones and giving banks until December 2032, citing the need to protect shareholder value and investor confidence [3]. Business Daily reports that Mbadi is seeking a truce with the CBK over the fallout [1].

Why Kenyans are searching for it

The sources do not explain why searches for the Central Bank of Kenya have risen. They describe a public disagreement between the Treasury and the regulator over bank capital rules. CBK Governor Kamau Thugge told Parliament that lenders below the Ksh5 billion threshold must explain how they intend to meet the December deadline [3]. The sources do not say whether this is driving the current search interest.

Key facts

• Banks must raise core capital to Ksh5 billion by December 2026, Ksh6 billion in 2027, Ksh8 billion in 2028 and Ksh10 billion by December 2029 [3].
• As of June 2026, 14 banks had failed to meet the Ksh5 billion requirement, and seven had yet to reach the earlier Ksh3 billion threshold [3].
• The sources disagree on the number of banks affected. A People Daily headline says 2 Kenyan banks fall short of the 2026 capital target [2]. Business Daily says banks below the target had not yet responded to the regulator's query on capital-raising measures, without giving a count [1]. The sources do not reconcile the figure of 2 with the figure of 14.
• The CBK has warned that banks failing to meet minimum capital requirements risk being downgraded to microfinance banks [3].

What to watch

Watch whether banks below the Ksh5 billion threshold respond to the CBK's queries on how they will raise capital [1][3]. Also watch whether the Treasury's proposal to move the deadline to December 2032 goes ahead, given the CBK's instruction to banks to follow the existing law [3]. Finally, the conflicting bank counts in the sources may be clarified by official figures [2][3].

Sources

1. [1] Mbadi seeks CBK truce on Sh10bn bank capital fallout - Business Daily
2. [2] 2 Kenyan banks fall short of 2026 capital target as CBK demands explanations - People Daily
3. [3] 14 Banks Face Downgrade as CBK Rejects Treasury's Capital Deadline Extension - Money254

Compiled by the NairobiCity trend desk from the sources above.