The Central Bank of Kenya (CBK) is introducing new capital and risk rules for banks deemed critical to the nation's financial stability.

• Banks identified as Domestic Systemically Important Banks (D-SIBs) will face higher capital requirements, ranging from an additional 0.5% to 2.5% of risk-weighted assets.
• The CBK aims to enhance the resilience of these major banks and limit the impact of systemic shocks.
• Designated banks will also be subject to more intensive supervision, quarterly stress tests, and must prepare recovery and resolution plans.

Approximately 2,000 affordable housing units under the Affordable Housing Programme remain unoccupied, prompting the government to explore new financing models. Of the 10,000 completed units, 8,000 are occupied.

• 2,000 affordable housing units are currently unoccupied.
• The Kenyan government, led by Interior Principal Secretary Raymond Omollo, is considering a revolving financing system.
• The new model aims to use revenue from sold and occupied units to fund future construction phases and potentially benefit security officers.

The Kenya Revenue Authority (KRA) has commenced the implementation of a directive by President William Ruto to lower the customs clearance threshold for general consolidated cargo.

• The threshold has been reduced from Ksh3.2 million to Ksh2 million.
• The KRA engaged with cargo consolidators to outline the implementation plan and establish a technical committee.
• A comprehensive tax education program will be rolled out for cargo consolidators and small traders to enhance compliance.