Kenya’s central bank reports that UBA has breached capital regulations
- UBA Kenya breached capital requirements set by the Central Bank of Kenya.
- UBA's core capital-to-deposit ratio fell from 29.46% in 2022 to 7.92% in 2023.
- UBA reported a pre-tax loss of $2.6 million in 2023, an improvement from $3.3 million in 2022.
The ongoing regulatory breaches among commercial banks, particularly UBA Kenya, highlight significant weaknesses in financial management and compliance within the sector. The proposed increase in capital requirements could lead to consolidation in the banking industry, potentially reducing competition and access to banking services for consumers, especially in underserved areas.
