The Central Bank of Kenya (CBK) has announced the end of its nearly decade-long moratorium on licensing new commercial banks, effective July 1, 2025. This significant policy shift aims to foster competition and innovation within Kenya’s dynamic banking sector.

The move comes after the CBK granted “approval in principle” to DIB Bank Kenya and Mayfair Bank Kenya, signaling the resumption of bank licensing. Both institutions had received initial approvals prior to the 2015 suspension but were unable to proceed due to the moratorium. The CBK has now committed to finalizing their license applications as part of this new phase.

Governor Kamau Thugge emphasized that the lifting of the moratorium aligns with the CBK’s broader strategy to enhance financial inclusion and strengthen the resilience of the banking sector. He noted that the increased capital requirements for banks, set to rise to KSh10 billion by 2027, are expected to promote mergers and create stronger financial institutions capable of withstanding emerging risks.

This policy change is anticipated to attract both local and international investors, contributing to the growth and diversification of Kenya’s financial landscape.