A recent Central Bank of Kenya (CBK) stress test reveals that while Kenya's banking sector shows improved resilience, it faces significant risks from rising non-performing loans (NPLs) and cyber-attacks, particularly impacting smaller lenders.

• The sector's NPL ratio climbed to 17.1% in December 2024 and 17.6% by April 2025.
• Bank of Africa and Sidian Bank remain under-capitalized, having consistently failed the test since 2022.
• A severe stress scenario could push the NPL ratio to 21.2% by December 2025, requiring KSh 5.1 billion in fresh capital for six banks.
• Eleven banks were below the new KSh 3 billion minimum core capital requirement as of June 2025, needing KSh 14.7 billion to comply.
• Cyber-attack losses could reach KSh 2.9 billion in a severe case, causing five banks to fall below the Core Capital Adequacy Ratio (CAR).