Consolidated Bank of Kenya anticipates a Sh1.125 billion fresh capital injection from the Treasury and disposal of non-core assets, including select buildings, in a race to raise more than Sh3.54 billion required to comply with the revised capital law.
The lender, which is 93.5 percent owned by the Treasury, is awaiting a fresh State injection by the end of June and has also been cleared to dispose of some assets. The bank is among those yet to comply with the requirement to boost minimum core capital to Sh3 billion, which came into effect on January 1, 2026.
Consolidated Bank was already struggling to comply with the old minimum core capital requirement of Sh1 billion, and the enhancement introduced through the Business Laws (Amendment) Act 2024 piled more pressure on the lender.
The lender said in a response to queries by the Business Daily that it has already submitted “a comprehensive core capital build-up plan” to the Central Bank of Kenya. The plan includes the Treasury’s planned fresh capital and asset disposal.
The lender closed December 2025 with core capital at negative Sh546.07 million, leaving it requiring at least Sh3.54 billion to comply with the minimum required core capital of Sh3 billion.
“The Treasury has committed to injecting Sh1.125 billion in the second quarter. In addition, there is also the disposal of non-core assets, including selected buildings, for which approval has already been granted by the National Treasury,” said the lender.
Under the Business Laws (Amendment) Act 2024, banks were required to increase the minimum core capital in the banking sector to Sh3 billion from Sh1 billion by the end of December 2025.
The law requires banks to boost their minimum core capital further to Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028, and Sh10 billion by the close of 2029, pointing to the fundraising roadmap facing banks such as Consolidated Bank.
The lender says part of its core capital boost will come from internally generated revenue. However, this will require that they post sustained profits to erase accumulated losses of Sh4.22 billion.
In the financial year ended December 2025, the lender posted a net profit of Sh198.18 million, marking an improvement from Sh155.22 million net loss in a similar period in 2024. The latest profit is the first one in 11 years, with the previous net profit coming in 2014 at Sh44.42 million.
The net profit came in the period, net interest income grew 38.4 percent to Sh1.3 billion, and non-interest income rose 28.1 percent to Sh1.93 billion. The increased income more than covered the 4.3 percent rise in operating expenses to Sh1.74 billion.
“This performance demonstrates the impact of the strategic efficiency measures we implemented across the business, which have enabled significant cost savings. Maintaining these efficiency levels will remain a priority going forward,” said Dominic Murage, acting CEO at Consolidated Bank.
“Small and medium enterprises remain central to our business model and portfolio, and we intend to deepen our support for them. We aim to strengthen our collaboration with government agencies, parastatals, universities, and ministries to position Consolidated Bank as the preferred banking partner for the public sector.”
