Nairobi, June 16 -- At least half of Kenya's 14 microfinance banks face pressure to raise an estimated Sh2.9 billion to meet newly proposed minimum core capital requirements by the Central Bank of Kenya(CBK), signalling a fresh wave of mergers and acquisition deals in the lending sub-sector.

The new Microfinance Bill 2026 proposes to raise the core capital floor for micro lenders to Sh250 million, up from Sh60 million. The micro-banks are expected to comply with the new capital requirements within five years after the government-sponsored Bill is passed in Parliament.

"The objective of this bill is to repeal and replace the Microfinance Act 2006, to address the evolving business of banking as well as the institutions offering microfinan...