KBA warns of possible closure of 24 Banks and loss of 7,000 jobs if proposed new law by RUTO’s Gov’t passes.

Thursday, November 28, 2024 - The Kenya Bankers Association (KBA) has warned that 24 banks in the country could collapse if a proposed law by the Central Bank of Kenya is passed.

The Central Bank of Kenya has proposed an increase in banks' core capital from Sh 1 billion to Sh 10 billion in three years for all the banks.

KBA warned that the planned increase in financial institutions' core capital would restrict loan availability, further slow down the economy, result in job losses, and lower government tax revenue.

The bankers said the 24 lenders, with a core capital of less than Sh 10 billion, will need Sh 150 billion to reach the threshold.

“We should not ignore the 24 banks' contribution to real economic growth, employment creation, and enhanced governance revenue," KBA acting CEO Raymond Molenje said.

The Kenyan DAILY POST