CBK Moves to Tighten Oversight of Kenya’s Systemically Important Banks

The Central Bank of Kenya has proposed a new regulatory framework that could impose materially higher capital and supervisory requirements on banks whose failure would pose significant risks to Kenya’s financial system, introducing a formal mechanism for identifying Domestic Systemically Important Banks and requiring the most systemically important institutions to hold up to an additional 2.5% of risk weighted assets in Common Equity Tier 1 capital.