By BRIAN NGUGIMore by this AuthorMicro-finance banks face additional capital requirements to provide a buffer against potential financial downturns in the first comprehensive review of the sector in years. A Central Bank of Kenya (CBK) backed inquiry has recommended that capital ratios of the micro-finance banks (MFBs) should be raised to a yet-to-be-established threshold. “The proposal is to have the minimum capital requirements for all microfinance banks increased for both existing MFBs and new entrants,” adds the CBK. The current legislation recognises two categories of microfinance banks: nationwide and community types. Three medium microfinance banks had a market share of 6.6 per cent (SMEP, Caritas and Sumac) and seven small microfinance banks (Remu, Uwezo, U&I, Century, Daraja, Choice) had a market share of 3.4 per cent.

Source: Daily Nation February 26, 2018 18:33 UTC