Nairobi, June 21 -- Claims of a potential slowdown in bank lending to households and businesses this year saw the National Treasury extend the Sh10 billion core-capital requirement, setting a one-off hard deadline of December 2032.

Cabinet Secretary to the National Treasury John Mbadi held engagements with banks ahead of the 2026/27 budget speech and agreed to the request for the removal of annual milestones on meeting the broader Sh10 billion core capital requirement.

Banks were initially expected to have at least Sh3 billion in core capital by the end of December last year and raise this limit further to Sh5 billion this year before meeting 2027 and 2028 annual milestones of Sh6 billion and Sh8 billion, respectively, and finally reach...