By Samuel Ouma
The Central Bank of Kenya (CBK) has announced proposed changes to banking licence fees, set to take effect upon approval by the National Assembly and publication in the Kenya Gazette.
The new regulations, outlined in the Banking (Fees) (Amendment) Regulations, 2025, seek to revise the fees financial institutions must pay based on their gross annual revenue.
“The gross annual revenue shall be determined on the basis of the audited financial statement of an institution of the year immediately preceding the year for which the annual fee is payable,” said CBK.
According to CBK Governor Dr. Kamau Thugge, the amendments aim to ensure a fair and structured approach to banking fees while promoting transparency in the sector. The proposed regulations revoke the Banking (Fees) (Amendment) Regulations, 1994 (LN. 188/1994) and introduce a progressive fee structure tied to institutions’ financial performance.
Under the revised regulations, the annual fee payable by banks will be determined as a percentage of their gross annual revenue, which includes income from interest on loans, government securities, commissions, and foreign exchange trading, among others.
The new regulations are expected to generate additional revenue for the CBK while ensuring that fees are proportionate to banks’ earnings.
Industry experts predict that larger financial institutions, which generate substantial revenue, will bear higher costs, while smaller banks may need to reassess their operational budgets to accommodate the increased fees.
CBK has assured stakeholders that these changes are necessary to enhance the banking sector’s regulatory framework while maintaining stability and accountability. The proposed adjustments will take effect once approved by Parliament.
Financial institutions and stakeholders have been encouraged to review the proposed amendments and prepare for compliance ahead of the implementation deadline.
