Islam Zekry: CIB Ready to Inject Additional Capital Investments to Enhance Stability and Competitiveness in the Kenyan Market
CIB Kenya: Committed to Meeting New Capital Requirements by 2029, Counting on Digital Growth and Strategic Expansion
CIB Kenya, a subsidiary of Commercial International Bank – Egypt (CIB), has expressed its confidence in fully complying with the new core capital requirements mandated by the Central Bank of Kenya. These new regulations require banks to increase their minimum core capital from the current KES 1 billion to KES 10 billion by the end of 2029.
The new regulatory framework, adopted in late 2024, outlines a phased approach starting with a minimum of KES 3 billion by the end of 2025, gradually reaching KES 10 billion over five years. This initiative aims to strengthen the resilience of the banking sector and enhance its capacity to absorb economic shocks.
In an interview with The Kenyan WallStreet, Islam Zekry, Group Chief Operating & Financial Officer at CIB, affirmed that the bank has already taken proactive measures to meet these requirements. He noted that raising capital will support the bank’s future expansion plans, product development, and the enhancement of both technological and human infrastructure, aligning with CIB’s long-term strategic goals.
Zekry stated: “CIB is prepared to inject additional capital investments to smoothly comply with regulatory requirements, which will enhance the bank’s robustness and long-term stability, enabling it to compete more effectively in the Kenyan market.”
Commercial International Bank – Egypt acquired a 51% stake in Kenya’s Mayfair Bank in April 2020 for KES 3.7 billion and completed a full acquisition in January 2023. This move significantly strengthened CIB’s presence in the Kenyan market and expanded its regional footprint in East Africa.
Zekry highlighted that Kenya represents a highly promising market due to its flexible regulatory environment, vibrant SME sector, rapid fintech evolution, and a young, increasingly digital-savvy population.
He emphasized that CIB Kenya’s current strategy focuses on digital rather than traditional branch expansion. The bank aims to deliver comprehensive, secure, and fast financial services through digital platforms to reach underserved areas, thereby promoting financial inclusion and economic empowerment.
Zekry added that this approach aligns with the shifting consumer behaviors in the Kenyan market, which is witnessing increased mobile phone usage and growing reliance on digital services. He also noted that the bank is enhancing its capabilities in credit portfolio monitoring and proactive risk assessment to maintain asset quality and respond swiftly to any early signs of deterioration.
These statements come as Fitch Ratings reports that only 14 out of Kenya’s 39 licensed banks had surpassed the KES 10 billion core capital threshold by the end of Q3 2024. Another seven banks are expected to reach this level through retained earnings, while the remaining institutions—representing just 7% of the sector’s total assets—may face challenges in complying without mergers or external capital injections.
Zekry concluded by affirming that strengthening CIB Kenya’s capital base will not only ensure regulatory compliance but also serve as a strong foundation to drive innovation, support market expansion, and deliver modern, tech-driven financial solutions tailored to the evolving needs of Kenyan customers.