This table provides metadata for the actual indicator available from Kenya statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Kenyan statistics, this table should be consulted for information on national methodology and other Kenyan-specific metadata information.
| Goal |
Goal 10: Reduce inequality within and among countries |
|---|---|
| Target |
Target 10.5: Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations |
| Indicator |
Indicator 10.5.1: Financial Soundness Indicators |
| Metadata update |
2024 |
| Related indicators |
Linkages with any other Goals and Targets: Recommendation II.2 of G-20 Data Gap Initiative – 2 concerned FSIs. The G-20 economies were asked to report the seven FSIs required from Special Data Dissemination Standards Plus (SDDS Plus) adherent economies on a quarterly frequency, with a timeliness of one quarter. These are the same FSIs as covered by this SDG Indicator 10.5.1 except that the SDG indicator includes the FSI net open position in foreign exchange to capital instead of the residential real estate prices. The G-20 economies were also asked to voluntarily initiate regular collection of Concentration and Distribution Measures, depending on the results of their cost-benefit analysis and national priorities. |
| Organisation |
Kenya National Bureau of Statistics |
| Contact person(s) |
Senior Manager, Fiscal, Financial and External Statistics |
| Contact organisation unit |
Fiscal, Financial and External Statistics |
| Contact person function |
Production and dissemination of External Sector, Fiscal and Financial Statistics |
| Contact phone |
254-202-911-000 |
| Contact mail |
30266-00100, Nairobi- Kenya |
| Contact email |
dmes@knbs.or.ke |
| Definition and concepts |
Seven FSIs are included as SDG indicators for 10.5.1 and expressed as percent. 1 - Regulatory Tier 1 capital to assets 2 - Regulatory Tier 1 capital to risk-weighted assets 3 - Nonperforming loans net of provisions to capital 4 - Nonperforming loans to total gross loans 5 - Return on assets 6 - Liquid assets to short-term liabilities 7 - Net open position in foreign exchange to capital Regulatory Tier 1 capital to assets: This is the ratio of the core capital (Tier 1) to total (balance sheet) assets. For jurisdictions that have implemented the Basel III leverage ratio, this indicator would be calculated using Tier 1 capital as the numerator and the exposure measure as the denominator, which comprises balance sheet assets, derivatives exposures, securities financing transaction exposures, and off-balance-sheet items. Regulatory Tier 1 capital to risk-weighted assets: It is calculated using regulatory Tier 1 capital as the numerator and risk-weighted assets as the denominator. The data for this FSI are compiled in accordance with the implemented Basel Accord (i.e., Basel I, Basel II, or Basel III). Nonperforming loans net of provisions to capital: This FSI is calculated by taking the value of nonperforming loans (NPLs) less the value of specific provisions for NPLs as the numerator and total regulatory capital as the denominator. Nonperforming loans to total gross loans: This FSI is calculated by using the value of NPLs as the numerator and the total value of the loan portfolio (including NPLs, and before the deduction of specific provisions for NPLs) as the denominator. Return on assets: This FSI is calculated by dividing annualized net income before taxes by the average value of total assets (financial and nonfinancial) over the same period. Liquid assets to short-term liabilities: This FSI is calculated by using liquid assets as the numerator and short-term liabilities as the denominator. The components of liquid assets are defined in the IMF’s 2019 FSIs Compilation Guide (2019 FSIs Guide). Net open position in foreign exchange to capital: The net open position in foreign exchange should be calculated based on the guidance in the 2019 FSIs Guide. Capital should be total regulatory capital as net open position in foreign exchange is a supervisory concept. Concepts: Regulatory Tier 1 capital to assets: Regulatory Tier 1 capital is calculated based on Basel I, II, or III depending on countries’ supervisory practices. Denominator is total balance sheet (non-risk weighted) assets. For jurisdictions that have implemented the Basel III leverage ratio, the denominator also includes off-balance-sheet items. Regulatory Tier 1 capital to risk- weighted assets: Regulatory Tier 1 capital is calculated based on Basel I, II, or III depending on countries’ supervisory practices. Denominator is risk-weighted assets also calculated based on Basel standards. Nonperforming loans (NPLs) net of provisions to capital: A loan is classified as NPL when payment of principal or interest is past due by 90 days or more, or evidence exists that a full or partial amount of a loan is not going to be recovered. Only specific provisions for NPLs are used in this calculation and they refer to charges against the value of specific NPLs. Data exclude accrued interest on NPLs. Capital is measured as total regulatory capital calculated based on Basel I, II, or III depending on countries’ supervisory practices. Nonperforming loans to total gross loans: A loan is classified as NPL when payment of principal or interest is past due by 90 days or more, or evidence exists that a full or partial amount of a loan is not going to be recovered. The denominator is the total value of the loan portfolio (including NPLs, and before the deduction of specific provisions for NPLs). Return on assets: The numerator is annualized net income before taxes. The denominator is the average value of total assets (financial and nonfinancial) over the same period. Liquid assets to short-term liabilities: Liquid assets include currency and deposits and other financial assets available on demand or within three months as well as securities traded in liquid markets that can be converted into cash with minimal change in value. The denominator is short-term elements of debt liabilities plus net market value of financial derivatives position. The latter is calculated as financial derivatives liability position minus financial derivative asset position. Short-term refers to three months and should be defined on a remaining maturity basis. If remaining maturity is not available, original maturity can be used as an alternative. Net open position in foreign exchange to capital: Net open position should be calculated in accordance with the guidance in the 2019 FSIs Guide. The denominator is total regulatory capital as defined above. |
| Unit of measure |
Percent (%). Data in the sectoral financial statements and other memorandum series used to calculate FSIs are in national currency. |
| Classifications |
Classification of financial positions by type of financial instruments and by counterpart sector, and definition of financial corporations subsectors are provided in the 2019 FSIs Guide. https://data.imf.org/FSI |
| Data sources |
The common source data are data reported by banks for supervisory purposes. They include balance sheet, income statement, and memorandum series (such as Tier 1 capital, Tier 2 capital, risk-weighted assets |
| Data collection method |
The Central Bank of Kenya (CBK) or supervisory agencies collect these data for supervisory purposes, and these data are used for FSIs compilation |
| Data collection calendar |
2018 - 2022 |
| Data release calendar |
2024 |
| Data providers |
Commercial banks and households |
| Data compilers |
CBK and KNBS |
| Institutional mandate |
According to the Statistics Act of 2006, Kenya National Bureau of Statistics is mandated to collect, compile, analyze, publish and disseminate official statistics for public use. |
| Rationale |
Regulatory Tier 1 capital to assets: It is a measure of leverage indicating the extent to which assets are funded by other than own funds. Regulatory Tier 1 capital to risk-weighted assets: It measures the capital adequacy of deposit takers based on the core capital concept of the Basel Committee on Banking Supervision (BCBS). Capital adequacy and availability ultimately determine the degree of robustness of financial institutions to withstand shocks to their balance sheets. Nonperforming loans net of provisions to capital: This FSI is a capital adequacy ratio and is an important indicator of the capacity of bank capital to withstand losses from NPLs that are not covered by specific provisions for NPLs. Nonperforming loans to total gross loans: This FSI is often used as a proxy for asset quality and is intended to identify problems with asset quality in the loan portfolio. Return on assets: It is an indicator of bank profitability and is intended to measure deposit takers’ efficiency in using their assets. Liquid assets to short-term liabilities: It is a liquidity ratio and is intended to capture the liquidity mismatch of assets and liabilities and provides an indication of the extent to which deposit takers can meet the short-term withdrawal of funds without facing liquidity problems. Last updated: 2022-04-12 Net open position in foreign exchange to capital: This FSI is an indicator of sensitivity to market risk, which is intended to gauge deposit takers’ exposure to exchange rate risk compared with capital. It measures the mismatch of foreign currency asset and liability positions to assess the vulnerability to exchange rate movements. |
| Comment and limitations |
Time lag of data. |
| Method of computation |
The calculation of the seven FSIs is detailed in section on “Definition” above. The common source data are data reported by banks to supervisory authorities, which are usually the FSI compilers. |
| Validation |
Statistics produced undergoes a rigorous process of peer review from Technical Working Groups, data providers and editorial teams |
| Methods and guidance available to countries for the compilation of the data at the national level |
The Bureau employed use of best standards and compilation guides when coming up with the reports |
| Quality management |
The Kenya National Bureau of Statistics is ISO certified based on 9001:2015 Standard requirements. The processes of compilation, production, publication and dissemination of data, including quality control, are carried out following the methodological framework and standards established by the KNBS, in compliance with the Internationally acceptable standards |
| Quality assurance |
The KNBS adheres to Kenya Statistical Quality Assurance Framework (KesQAF) that underlines principles to be assured in managing the statistical production processes and output. Data consistency and quality checks are conducted through Technical Working Groups (TWGs) before publication and dissemination. |
| Quality assessment |
The processes of compilation, production, publication and dissemination of data, including quality control are subjected to a set criteria and standards to ensure conformity. |
| Data availability and disaggregation |
Data is available on the KNBS and CBK websites |
| Comparability/deviation from international standards |
None |
| References and Documentation |
None |
| Metadata last updated | Aug 28, 2025 |