In line with the Basel III reforms and the agreements reached between the central banks of the East African Community, we are raising the minimum statutory capital adequacy ratios at the end of December 2016, to lock in most of the higher capital that banks currently hold.
The minimum core capital requirement will be raised to 10 percent of risk weighted assets and banks will also be required to hold a capital conservation buffer of 2.5 percent of their risk weighted assets. The domestically systemically important banks will also be subject to a capital surcharge.