Central Bank of Kenya (CBK) to licence two new banks
The Central Bank of Kenya (CBK) has announced its intention to finalize the processing of licence applications for two institutions that had already been granted an “approval in principle”, as a first step to lifting the moratorium on licensing of new commercial banks. Both institutions were granted “approval in principle” by CBK before the moratorium was declared on November 17, 2015.
The moratorium came after it had placed privately-owned Imperial Bank under receivership in October 2015. The restriction on licences was intended to give the regulator time to enhance its supervisory capacity following the collapse of Imperial Bank
Accordingly, DIB Bank Kenya Limited (In Formation) and Mayfair Bank Limited (In Formation) will take the remaining steps to finalise their license applications.
DIB Bank Kenya Limited (In Formation) is a wholly owned subsidiary of the Dubai Islamic Bank PJSC, a leading sharia compliant bank from the United Arab Emirates.
On the other hand, Mayfair Bank Limited (In Formation) is owned by a diverse group of Kenyan investors with interests in various sectors.
According to the Central Bank of Kenya, the entry of these banks on the fulfilment of all the pre-licensing conditions will expand the range of banks’ business models and underscore Kenya’s growing stature as a regional financial services hub.