Kenya: Central bank suspends licensing of new banks


The Central Bank of Kenya has indefinitely suspended the licensing of new banks, This action takes effect immediately, comes two months after the closure of the 28-branch-strong Imperial Bank over banking malpractices.

 The CBK said in a statement that prohibition order would be reconsidered at a later date but added that the order did not stop resolution of existing banks.

It said that all ongoing discussions on planned mergers and acquisitions by local or foreign banks were permitted and would not be affected by the order.

CBK has been in the limelight recently following the closure of Imperial and Dubai banks that are currently being managed by the Kenya Deposit Insurance Corporation.