The financial sector regulators in Kenya have proposed several measures to strengthen the country’s financial sector. In a joint statement, the regulators have suggested deploying appropriate policy measures to enhance financial stability assessment frameworks at institutional and sector-wide levels. This requires working closely with the National Treasury to develop a robust macro-prudential policy framework.
The regulators also emphasized the need to develop a comprehensive framework for climate risk analysis, Environmental, Social, and Governance (ESG) reporting, and climate-related risk disclosures. They also proposed putting in place a Green Finance Taxonomy for the financial sector. Moreover, they will collaborate in developing a national financial education strategy that would encompass financial literacy and awareness to deepen financial inclusion and entrench consumer protection practices.
The regulators agreed to enhance the integrity of the financial sector by addressing gaps identified during the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) mutual evaluation for Kenya and address emerging issues on Anti-Money Laundering/Countering the Financing of Terrorism/Combating Proliferation Financing (AML/CFT/CPF). They will also develop comprehensive facilitative frameworks for streamlining innovation, including virtual assets, to meet the needs of the general public and support economic growth.
The 14th Retreat of the Joint Financial Sector Regulators Forum (JFSRF) was held in Kwale County on November 17, 2023, and was attended by Boards of Directors, Chief Executive Officers, and staff from various regulatory authorities. The retreat was held against the backdrop of a challenging global environment characterized by volatility in the financial markets, rising interest rates, elevated inflation pressures, high cost of living concerns, cyber risks, geopolitical developments, and climate change risks. However, Kenya’s financial sector remains stable and resilient to domestic and global shocks, thanks to technological transformation, efforts to green the financial sector, and continued reforms in the regulatory environment.
The Financial Sector Regulators Forum (FSRF) was established in 2009 to promote cooperation and collaboration in areas of mutual interest, including information sharing, collaboration, and coordination on financial sector issues cutting across the banking, insurance, saccos, capital markets, and pension sectors. The forum holds annual retreats to review issues touching on the country’s financial stability and address emerging issues pertinent to the growth and stability of Kenya’s financial sector.
The Retreat was hosted by the Central Bank of Kenya and chaired by the Retirement Benefits Authority. It was attended by Boards of Directors, Chief Executive Officers, and staff from the Capital Markets Authority (CMA), the Central Bank of Kenya (CBK), the Insurance Regulatory Authority (IRA), the Retirement Benefits Authority (RBA), and the Saccos Societies Regulatory Authority (SASRA). Also present were Boards, Chief Executive Officers, and staff from the Kenya Deposit Insurance Corporation (KDIC), and the Policyholders Compensation Fund (PCF).
