The banking sector in Kenya has undergone several changes in the past few years.
According to the Banking Sector Report for the quarter ended 31st March, 2013, there are 43 commercial banks and 1 mortgage finance institution operating in the country. The sector has also seen an increase in the number of bank branches form 534 in December 2005 to over 1,000 by 2011. The industry has also experienced cross boarder expansion with some local banks now operating in neighboring countries such as Tanzania, Rwanda, Uganda and South Sudan.
The Kenyan banking sector has also seen the introduction of Mobile Banking Services and agency banking, which has improved access of banking services to areas not previously reached before.
Notably also is the rise of Islamic or Sharia Compliant banking in Kenya. This is a fast growing industry which is estimated to own at least 1.6% of the global assets of the top 50 largest banks in the world.
The enactment of the Microfinance Act of 2006 (on 2nd May, 2008) paved the way for the transformation of Microfinance Institutions (MFIs) to deposit taking Microfinance Institutions (DTMs) in Kenya. The Central Bank of Kenya (CBK) has noted that close to 50 institutions are registered as microfinance institutions with the Association of Microfinance Institutions of Kenya. The microfinance industry has and continues to play a pivotal role in enhancing access to financial services and products by majority of the Kenyans.
In July 2010, the Credit Sharing Mechanism was launched. This has helped strengthen the credit appraisal standards. Consequently, credit reference reports have been incorporated in the credit risk appraisals process of most lending institutions. As a result, this has helped to cultivate credit discipline in borrowers.
We have represented various banks and Microfinance institutions in ground breaking and complex transactions, and our able and dedicated team have a wealth of knowledge in working with banks.