Capital adequacy ratio in Kenya's banking sector 2017-2021
In 2021, the capital adequacy ratio (CAR) of commercial banks in Kenya increased to 19.5 percent, up from 19 percent in the preceding year. The growth indicated an improvement in the banking sector's ability to withstand a financial downturn. The CAR measures the ratio between capital volume and risk-weighted credit exposures. The higher the ratio, the more likely the banks will handle losses before being at risk of insolvency.
