Tier III lender Consolidated Bank of Kenya expects a fresh capital injection by June 30, 2026, from the National Treasury following the allocation of KES 1.125 billion in the 2026/2027 draft programme-based budget to strengthen the lender’s capital position.
The move by the treasury complements the bank’s efforts to raise over KES 3.5 billion in core capital to meet the revised requirements set by the Central Bank of Kenya (CBK).
The Business Laws (Amendment) Act 2024 revised the minimum core capital thresholds for banks from KES 1 billion to KES 3 billion by December 2025, KES 5 billion by the end of 2026, KES 6 billion by the close of 2027, KES 8 billion by the end of 2028, and KES 10 billion by December 2029, to enable banks sustain growth and enhance their resilience amid increasing risks.
Consolidated Bank closed FY2025 with a core capital deficit of KES 546.1 million, falling short of the CBK’s minimum KES 3 billion requirements by KES 3.54 billion. In tandem with its recapitalization efforts, the lender has also received regulatory approval to dispose of some assets.
Consolidated Bank FY2025 Performance
In the year ended December 31, 2025, the lender swung to profitability, bringing to an end an eleven-year streak of losses. Consolidated Bank posted a net profit of KES 198.2 million compared to a net loss of KES 155.2 million in FY2024. The turnaround was supported by strong growth in operating income to KES 1.93 billion, up 28.2% year-on-year.
The bank’s balance sheet strengthened, with total assets expanding 11.2% to KES 19.49 billion. Net loans and advances rose marginally by 0.5% to KES 8.56 billion, while customer deposits grew 4.9% to KES 12.29 billion.
However, gross non-performing loans rose sharply by 12.4% to KES 4.09 billion, reflecting deteriorating asset quality.
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