MICROCAPITAL BRIEF: At Conference, Kenyan Finance Minister Talks About Microfinance Reform

At the 16th Annual Conference sponsored by MicroFinance Network (MFN) in Nairobi, Kenyan Minister of Finance Uhuru Kenyatta commented on the progress of the government towards implementing reforms in the microfinance sector. Last year, the government passed its Microfinance Act and pursuant to it, has begun supervising and regulating the industry, including issuing licenses to operate as microfinance institutions. Currently, Kenya has 4.5 million customers in microfinance sector and those figures will go higher with reforms. Minister Uhuru noted that the Central Bank of Kenya has already created a microfinance supervisory division and plans on future laws to monitor remittances as well.

About CBK:

Established in 1966, the Central Bank of Kenya is the central banking authority.  With the microfinance regulations taking effect in May 2008, the Central Bank of Kenya operationalized the Microfinance Act of 2006.  The Act paved the way for the licensing of microfinance institutions (MFIs) that take deposits from the public. Prof. Njuguna Ndung’u was appointed Govenor of Central Bank in March 2007.

CBK website: http://www.centralbank.go.ke/

 

About MFN:

MicroFinance Network is an international association of microfinance institutions consisting of thirty-three members from twenty-eight countries.  The goal of MFN is to share ideas, experiences, and solutions to the challenges faced by microfinance institutions towards achieving both financial and social success. MFN website: http://www.mfnetwork.org/

 

[1] Original Article: http://www.kbc.co.ke/story.asp?ID=60666

[2] Microfinance Act on Central Bank of Kenya website: http://www.centralbank.go.ke/financialsystem/microfinance/Introduction.aspx