The CBK provides liquidity to commercial and microfinance banks as a lender of last resort to ensure the sector’s stability.

The declaration by the National Treasury comes a day after the Central Bank Kenya (CBK) declared the deadlines were not being extended.

The CBK provides liquidity to commercial and microfinance banks as a lender of last resort to ensure the sector’s stability.

Kenya’s banks face tougher capital rules as regulators push for stronger, more stable financial institutions through recapitalisation and consolidation.

At least seven microfinance banks will need fresh capital to meet proposed CBK requirements.