Up to 12 Kenyan banks face potential mergers, acquisitions, or collapse unless they collectively raise Sh19.8 billion in capital by year-end, according to a recent report by the Central Bank of Kenya (CBK). This warning signals the most significant threat to the country’s banking sector since the failures of Imperial Bank and Chase Bank in 2015-2016.

• 11 banks are currently operating with core capital below the new Sh3 billion threshold, which takes effect in June 2025.
• The information was outlined in the CBK’s latest Financial Sector Stability Report.
• The capital shortfall for these banks totals nearly Sh20 billion.