Nairobi, Sept. 20 -- Kenya's commercial banks with core capital of less than 8.625 percent of their loan book will be barred from paying any dividend to their shareholders in new regulatory proposals to control risk in the banking sector.

The Central Bank of Kenya (CBK) wants banks to maintain significant levels of common equity tier 1 capital (CET 1) -made up primarily of retained earnings- in relation to risk taken through lending before they can pay dividends.

Published by HT Digital Content Services with permission from Business Daily....