Question

Discuss the structure of the banking sector in Kenya, clearly bringing out the players in each category, their role and supervisory bodies.

Answer 1

The Kenyan banking industry has experienced considerable growth in the past few years. The banking sector was robust and stable and registered enhanced performance in 2013 as demonstrated by a growth of 15.9 per cent in the total net assets of the banking industry and an increase in Customer deposits of 13.5 per cent in that year. In addition, there has been an expansion of banks across Kenya, through the establishment of branches and other places of business, an increase in the availability of mobile financial services and greater usage of the agency banking model to allow commercial banks to engage third parties to offer specified banking services on their behalf.