22 banks face closure as minimum capital raised to Ksh5bn

About two dozen commercial banks will have to raise their minimum capital to Ksh5 billion in the next three years in order to continue operating, according to new requirements contained in the Finance Bill.

According to data from the Central Bank of Kenya, there are 22 banks that do no meet this new minimum capital proposed the National Treasury Cabinet Secretary, Mr Henry Rotich, in the 2015/16 Budget Statement, Tuko reports.

Mr Rotich said the new regulations will help the institutions finance larger projects while safeguarding their stability.

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These banks will have to get more money from shareholders, merge or sell shares in order to comply with the new requirement.

HERE IS THE LIST

1.     African Banking Corporation Ltd
2.     Credit Bank Ltd
3.     Consolidated Bank of Kenya Ltd
4.     Charterhouse Bank Ltd
5.     Dubai Bank Kenya Ltd
6.     Development Bank of Kenya Ltd
7.     Equatorial Commercial Bank Ltd
8.     First community Bank Limited
9.     Fina Bank Ltd
10.     Fidelity Commercial Bank Ltd
11.     Gulf African Bank Limited
12.     Giro Commercial Bank Ltd
13.     Habib Bank Ltd
14.     Habib Bank A.G Zurich
15.     Jamii Bora Bank Limited
16.     K-Rep Bank Ltd
17.     Middle East Bank (K) Ltd
18.     Oriental Commercial Bank Ltd
19.     Paramount Universal Bank Ltd
20.     Trans-National Bank Ltd
21.     UBA Kenya Bank Limited
22.     Victoria Commercial Bank Ltd

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