By Magdalene Wanja - Reporter
Kenya, 13 December 2025 - The Board of Directors of the Central Bank of Somalia (CBS) has held its ordinary meeting and approved a series of key policy and regulatory measures aimed at strengthening the country’s financial sector.
The meeting, held from December 9 to 10, made several major decisions, including the licensing of three new microfinance institutions and one new money transfer business.
The Board also approved the re-licensing of 11 commercial banks and 11 money transfer businesses. In addition, it endorsed the CBS budget for 2026, alongside a new investment policy and a strategic asset allocation framework.
According to the Bank, these measures are expected to enhance financial inclusion, strengthen regulatory oversight, and boost the Central Bank’s institutional capacity as Somalia continues to reform and modernize its financial system.
“These decisions further strengthen Somalia’s financial sector, support inclusion, and enhance CBS’s institutional capacity,” a statement issued by the CBS said.
In November, the Bank announced the licensing of seven non-deposit-taking microfinance institutions (NDT-MFIs) following the approval of the revised Financial Institutions Act and the introduction of a new licensing framework. At the time, the Bank directed all remaining MFIs to submit their licensing applications by December, warning that non-compliant institutions would face regulatory action under the Financial Institutions Act.
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“All remaining MFIs must submit their licensing applications by 6 December 2025. Non-compliant institutions will face regulatory action under the Financial Institutions Act,” CBS said in a statement last month.
The Bank noted that the recent steps are aimed at expanding access to formal financial services for underserved individuals, micro-enterprises, women, and youth, while improving governance, oversight, and overall sector stability. The measures are also expected to enable microfinance institutions to offer small, flexible, and Sharia-compliant financial products to stimulate economic activity.
These reforms form part of CBS’s broader modernisation agenda, supported by international partners including the International Monetary Fund (IMF), to strengthen Somalia’s financial infrastructure and promote sustainable economic development.
The latest decisions follow the inauguration of the Financial Stability Committee (FSC), which held its first meeting on November 24, 2025.
The establishment of the committee marks a significant step in Somalia’s financial governance, creating a dedicated platform to monitor systemic risks, coordinate macroprudential policies, and enhance the resilience of the financial system.
