The Central Bank of Kenya (CBK) has proposed stricter oversight for banks considered too important to the financial system, including Equity Group, KCB Group, NCBA Group, Co-operative Bank and I&M Bank.
Reports that under the draft framework, lenders classified as Domestic Systemically Important Financial Institutions (D-SIFIs) could face restrictions on expansion and new products if they increase systemic risk.
The CBK will assess banks annually based on factors such as size, interconnectedness, complexity and economic importance. The regulator is also proposing higher capital buffers to reduce the risk of failure and avoid taxpayer-funded bailouts.
The move comes as Kenyan banks expand across East and Central Africa, with major lenders deriving a significant share of assets and earnings from regional operations outside Kenya
