The Kenya Financial Stability Reports provide an assessment of the financial system in compliance with the Central Bank of Kenya Act, Section 4(2) and the Financial Sector Regulators Memorandum of Understanding (MOU) of 2009 (Revised in 2023). The 2025 Financial Stability Report indicates that financial system is stable and resilient to risks related to geopolitical conflicts underpinned by high capital and liquidity buffers as well regulatory and supervisory measures taken to mitigate the risks. The exposure of financial system to cyber threats, climate related risks and geopolitical conflicts is expected to persist in 2027. Therefore, increasing capital and liquidity buffers, operational resilience and climate risk management will enhance the resilience of the financial system to risks. Read the report here…
