The Central Bank of Kenya (CBK) has tabled a new proposal that will see banks with higher revenue start paying higher license fees.
The benchmark of the banks revenue is dependent of oans, government securities, fees, commissions, foreign exchange trading, and dividends.
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At it stands, banks in Kenya pay license fees on a fixed rate something that will now be charged on the gross revenue they collect.
Under the new regulation, banks with many branches will pay more repealing the Legal Notice No. 188/1994 on Banking Fee.
The fees payable must first be settled before a license is issued which will be renewed on a yearly basis and not later than 15th after the audited financial statements are made public.
“The Kenyan banking sector has grown significantly over the past 30 years. Total assets have increased by more than 38 times—from Sh202 billion in 1994 to Sh7.6 trillion in 2024,” said CBK
As things stand, bank pay a license fee of Ksh 400,000 for there head office with that paid for branches ranging between Ksh 100,000 to Ksh 150,00.
