Commercial banks in Kenya could soon pay higher licence fees if the National Assembly approves the proposed new regulations. The draft Banking (Fees) (Amendment) Regulations, 2025, developed by the Central Bank of Kenya (CBK), propose basing fees on a bank’s gross annual revenue. If passed, the new fees will take effect on 31 December this year, replacing the Banking (Fees) (Amendment) Regulations, 1994, which determine fees based on the number and location of bank branches.
CBK Governor Dr Kamau Thugge explained that gross annual revenue includes income from interest on loans, advances, government securities, fees and commissions, dividends, and foreign exchange trading, among other sources.
“The gross annual revenue shall be determined based on the audited financial statement of the year immediately preceding the year for which the annual fee is payable,” the draft regulations state.
Under the proposed structure, banks will be required to pay 0.6 per cent of their gross annual revenue by 31 December this year. This will rise to 0.8 per cent in 2026 and 1.0 per cent from 2027 onwards.
Currently, under the 1994 regulations, banks pay a flat Ksh 400,000 for a licence, plus annual fees based on branch location—Ksh 150,000 per branch in a municipality, Ksh 100,000 in a town council area, and Ksh 30,000 in an urban council area.
The fees for establishing a representative office in Kenya remain unchanged at Ksh 5,000 for an application and Ksh 20,000 upon approval. According to the CBK, a review of banking licence fees is long overdue, as the charges were last revised in 1990.
“The Kenyan banking sector has grown significantly over the past 30 years. Total assets have increased more than 38 times—from Ksh 202 billion in 1994 to Ksh 7.6 trillion in 2024. However, despite this growth, licence fees for commercial banks have remained unchanged,” a CBK consultative paper notes.
