Spare banks from rushed marriages, urges Central Bank of Kenya boss

Central Bank of Kenya (CBK) Governor Patrick Ngugi has warned that a proposal in the Finance Bill to have commercial banks increase their core capital to Sh5 billion by the end of 2018, could lead to the collapse of small banks.

Ngugi urged a parliamentary committee to drop the proposal to avoid pushing small banks out of business. He warned that if this rule is upheld, it would leave established banks dominating the market, while forcing small banks to either consolidate or seek investors to meet the stiff capital requirements.