Kenyans Set To Register New Banks After CBK Lifts 10-Year Ban
The Central Bank of Kenya (CBK) announced that the moratorium, which has been in effect since November 17, 2015, will officially be lifted starting July 1, 2025.
Viral Tea Ke Writer 
Anyone in Kenya seeking to register a new commercial bank will now find it possible to do so after the Central Bank of Kenya (CBK) lifted the temporary suspension by the government with regard to the licensing of new banks in the country.
In a press release issued on Wednesday, the Central Bank of Kenya (CBK) announced that the moratorium, which has been in effect since November 17, 2015, will officially be lifted starting July 1, 2025. 
"The Central Bank of Kenya announces that with effect from July 1, 2025, it will lift the moratorium on licensing of new commercial banks. The moratorium has been in place from November 17, 2015," the statement read in part.
CBK Governor, Dr Kamau Thugge, appearing before the National Assembly’s Finance and National Planning Committee on August 21, 2024. /PARLIAMENT KENYA
According to CBK, the moratorium was imposed against a backdrop of governance, risk management, and operational challenges in the banking sector.
The ban was intended to provide space for the strengthening of the Kenyan banking sector. Since then, significant strides have been made in strengthening the legal and regulatory framework for Kenya’s banking sector.
Notably, there have been several mergers and acquisitions by existing players and the entry of new domestic and foreign strategic investors into the sector.
"The recent increase in the Business Laws (Amendment) Act, 2024, of the minimum core capital requirements for commercial banks to Ksh 10 billion will further reinforce the strengthening of the banking sector," added the statement.
Following the lifting of the moratorium, CBK announced that new entrants to the Kenyan banking sector will be required to demonstrate that they can meet the enhanced minimum capital requirements of Ksh 10 billion.
CBK stated that reopening the sector to new players will expand access to banking services for more Kenyans, helping to support the country's broader development goals.
"Stronger and more resilient banks will be able to navigate the growing risks in the global, regional, and domestic arenas. Additionally, they will be able to support large-scale financing needs to meet Kenya's development aspirations," it added.
In its latest Monetary Policy Committee (MPC) report released on Tuesday, April 8, CBK announced a cut in the base lending rate by 75 basis points, lowering it from 10.75 percent to 10.00 percent.
In October 2024, CBK granted permission to JPMorgan Chase Bank N.A., the largest bank in the United States and the world's largest bank by market capitalisation as of 2023, to open a representative office in Kenya.
This was revealed to be a strategic move that would allow the American multinational finance company, headquartered in New York City and incorporated in Delaware, to operate in Kenya by the name JPMorgan Chase Bank N.A. Representative Office Kenya.
A building housing JPMorgan Chase & Co. in New York. /NEW YORK TIMES
