CBK’s New Systemic Bank Rules Should Kenya’s Biggest NSE Banks Under the Investor Analysis

Kenya’s largest listed banks are entering a new regulatory phase in which size itself could become a more important investment variable. The Central Bank of Kenya has proposed a framework that will identify Domestic Systemically Important Banks and require the institutions judged most capable of transmitting financial distress across the economy to hold additional Common Equity Tier 1 capital, potentially reaching 2.5% of risk weighted assets.