Speaking on Wednesday during a briefing after the Monetary Policy Committee meeting, Thugge said the Central Bank has no problem with banks joining forces, as long as they follow the law and meet all regulatory rules.
“We welcome any mergers and acquisitions in the banking sector. The stronger the banks, the more competition and credit provision on a large basis,” he said.
In simple terms, a merger happens when two banks combine to become one. Sometimes one bank takes over another, or they form a new company together.
Thugge explained that bigger and stronger banks are better placed to survive tough economic times and financial shocks. He said such banks also have more capital, which means they can lend more money to businesses and ordinary customers.
His remarks come at a time when banks are preparing for major changes in the sector. By March 2026, lenders are expected to move their loans to the Risk-Based Credit Pricing system. The new model is meant to make lending rates fairer and more transparent, with interest charges based on a customer’s risk level.
Banks are also facing gradual increases in minimum capital requirements up to 2029, pushing smaller lenders to either raise more money or consider merging.
Even so, Thugge said the CBK is not aware of any secret or new mergers currently happening.
“We are not aware of any mergers that are not public already, but we welcome any going forward,” he added.
Kenya’s banking sector has seen several mergers in the past, as banks try to cut costs, expand their networks and remain competitive.
If more mergers happen, customers might notice small changes like new account numbers, fresh ATM cards or new mobile banking platforms. But they could also benefit from better services, stronger systems and wider branch and ATM networks.
For many Kenyans, what matters most is simple safe banks, fair interest rates and easier access to loans.
