Nairobi, June 11 -- Struggling commercial banks have been given a three-year deadline extension to raise their core capital to a minimum Sh10 billion, offering reprieve to 23 small lenders that are below the set mark.

National Treasury Cabinet Secretary (CS) of John Mbadi extended the deadline for banks to increase their minimum core capital from the current Sh3 billion to Sh10 billion from 2029 to 2032.

Mr Mbadi also cancelled the phased capital increase which had set annual targets for lenders to achieve each year for the next four years.

The declaration by the National Treasury comes a day after the Central Bank Kenya (CBK) declared the deadlines were not being extended.

Core capital refers to shareholders' direct investment in the...