ABC Bank Joins The Race To Raise Capita Ahead Of CBK’s Deadline

ABC Bank is raising its core capital to KES 3 billion through a rights issue to meet the Central Bank of Kenya’s (CBK) minimum core capital requirements before December 31, 2025.

The rights issue, initiated by shareholders, is ongoing to raise additional capital to increase the Bank’s core capital, which stood at KES 2.6 billion as of September 30, 2025.

“Our shareholders recently initiated a cash call to meet CBK’s minimum core capital requirement. This move reflects shareholders’ strong confidence in ABC Bank’s growth strategy and long-term prospects,” said ABC Bank Group Managing Director, Shamaz Savani.

Mr. Savani stated that the Bank is also in advanced engagements to meet subsequent capital requirements to fund the next phase of growth.

The capital raising comes on the heels of Paramount Bank rights issue that raised KES 332 million and enabled the lender’s core capital hit KES 3.118 billion.

Paramount Bank raised the funds from existing shareholders and was duly reported to the CBK in line with regulatory requirements.

With an enhanced capital base, Paramount Bank said that it was better positioned to accelerate its expansion strategy, support larger lending portfolios, strengthen digital transformation initiatives, and enhance customer-centric products across retail, SME, and corporate segments.

“This milestone reflects the confidence our shareholders have in Paramount Bank’s strategic vision and our ability to deliver sustainable value whilst meeting all statutory requirements. The strengthened capital position enables us to scale up lending, enhance operational resilience, and continue providing innovative financial solutions to our customers,” said Mr. Ayaz Merali, Chief Executive Officer, Paramount Bank.

Commercial banks are racing to raise the minimum core capital to KES 3 billion by the end of the year as required by the CBK.

The CBK is aggressively pushing for banks to raise their core capital as a means of strengthening the lenders and, by extension, the banking system, which is critical to Kenya’s economic growth prospects.

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