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Originally published by Kenyans
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September 25, 2026
1h ago

Bankers Warn of Higher Loan Costs as CBK Tightens Rules

Bankers Warn of Higher Loan Costs as CBK Tightens Rules

CBK also noted that demand for affordable credit remains unmet, particularly among small and medium-sized enterprises, despite the average lending rate having fallen...

✨ Key Highlights

The Central Bank of Kenya (CBK) is proposing new rules that would require Domestic Systemically Important Banks (D-SIBs) to hold higher capital buffers, potentially leading to increased loan costs.

  • The Kenya Bankers Association (KBA) warns that these additional capital and liquidity requirements could reduce the funds available for lending.
  • KBA CEO Raymond Molenje expressed concern over the timing of the proposed rules, suggesting they should wait until banks meet the existing Ksh10 billion minimum core capital requirement.
  • Despite concerns, the CBK maintains the banking sector is stable and urges banks to increase lending to MSMEs.

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