The Central Bank of Kenya (CBK) has proposed new regulations that will require credit guarantee companies to maintain a minimum core capital of Sh1 billion. This move aims to strengthen oversight of the sector and provide a comprehensive framework for their operations.

• The proposed Central Bank of Kenya (Credit Guarantee Business) Regulations, 2025, also stipulate that no single shareholder can hold more than 25 percent of a company’s share capital.
• The regulations prohibit credit guarantee companies from deposit-taking, granting loans, or engaging in trading activities outside their mandate, and require them to maintain total capital of at least 14.5 percent of total risk-weighted assets.
• These reforms stem from amendments to the Central Bank of Kenya Act under the Business Laws (Amendment) Act, 2024, and entities already offering these services will have five years to comply.