Capital adequacy ratio in Kenya's banking sector 2017-2022
In 2022, the capital adequacy ratio (CAR) of commercial banks in Kenya decreased to 19 percent, down from 19.5 percent in the preceding year. The shrinking indicated a slight decrease 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.