Sidian Bank has completed a KSh 3 billion rights issue, pushing its core capital to KSh 11.63 billion and clearing the Central Bank of Kenya’s minimum capital threshold for commercial banks three years ahead of the December 2029 deadline.
The raise marks the third consecutive year the tier II lender has returned to shareholders for capital, bringing the cumulative total to nearly KSh 6 billion since 2024.
The board of management approved the fundraising in November 2025. The bank then collected the proceeds in two tranches, in January and February 2026, following a rights issue offered to existing shareholders.
The injection lifted core capital by 42.7%, from KSh 8.15 billion in December 2025 to KSh 11.63 billion in February 2026, crossing the KSh 10 billion threshold the CBK requires all commercial banks to meet by the end of 2029.
Where the Capital Goes
Sidian Bank plans to deploy the fresh funds across several strategic priorities, including business growth, digital banking, trade finance, infrastructure financing, brand development, sustainability programmes and risk management, alongside meeting ongoing regulatory capital requirements.
Clearing the CBK Capital Ladder Early
The Business Laws (Amendment) Act 2024 introduced a phased increase in minimum core capital for Kenyan commercial banks, replacing the previous KSh 1 billion floor. The revised schedule requires banks to meet progressively higher thresholds through to 2029:
| Deadline | Minimum Core Capital Required |
|---|---|
| December 2025 | KSh 3 billion |
| December 2026 | KSh 5 billion |
| December 2027 | KSh 6 billion |
| December 2028 | KSh 8 billion |
| December 2029 | KSh 10 billion |
Sidian Bank’s core capital of KSh 11.63 billion now exceeds every threshold on that schedule, including the final 2029 requirement. The CBK designed the framework to strengthen sector resilience and ensure banks carry sufficient capital to sustain growth as risks increase.
A Bank Moving Up the Peer Rankings
The capital raise builds on a period of accelerating performance. In September 2025, the CBK reclassified Sidian Bank from a small to a mid-sized peer group lender after the bank reached a 1% market share, supported by growth in assets and deposits.
Full year 2025 results reinforced that momentum. Profit after tax grew sixfold to KSh 1.74 billion, from KSh 287.4 million in 2024, driven by strong revenue growth across the business.
With its capital position now well ahead of regulatory requirements and a reclassification that reflects genuine market share gains, Sidian Bank enters 2026 with the headroom to pursue growth rather than manage compliance, a shift that its results suggest it is already putting to use.
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