Commercial Bank Licence — Fees and Charges in Kenya

A commercial bank licence authorises an institution to accept deposits from the public, extend credit, offer financial intermediation services, and carry out the full range of banking activities in Kenya. Commercial banks are licensed and regulated by the Central Bank of Kenya (CBK) under the Banking Act, Cap. 488. After a decade-long moratorium on new licences, the CBK reopened licensing to new applicants effective 1 July 2025.

Current Licence Fees (Branch-Based Model)

Licence Component	Annual Fee (KES)
Head Office	400,000
Non-Operating Holding Company	500,000
Branch (Municipality)	150,000 per branch
Branch (Town Council Area)	100,000 per branch
Branch (Urban Council Area)	30,000 per branch
Third-Party Agent (Banking Agent)	1,000 per agent

These fees, set under the Fourth Schedule of the Banking Act, have remained unchanged since 1990. The CBK published a Consultative Paper in March 2025 proposing a fee framework revision to reflect the sector's growth — total bank assets have increased more than 38 times since 1994, from KES 202 billion to KES 7.6 trillion by 2024 — while regulatory costs have risen substantially.

Minimum Capital Requirements

Capital Milestone	Requirement (KES)	Deadline
New entrants (minimum core capital)	10,000,000,000 (10 billion)	From July 2025
Existing banks — Phase 1 minimum	3,000,000,000 (3 billion)	December 2025
Existing banks — Final target	10,000,000,000 (10 billion)	December 2029

The Business Laws (Amendment) Act, 2024 raised the minimum core capital from KES 1 billion to KES 10 billion (phased for existing banks). New entrants must demonstrate compliance with the KES 10 billion threshold from the outset.

Application Requirements

Applications must include a feasibility study, certified constitutional documents, fit and proper declarations for all proposed directors and senior officers, three-year financial projections, proposed product and service schedules, proposed reinsurance arrangements (where applicable), evidence of paid-up capital, and a business plan. The process typically takes approximately 60 days per phase. Regulated by the Central Bank of Kenya (CBK) under the Banking Act, Cap. 488, Laws of Kenya.

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