The government is keen on speedy enactment of key legislations that will bring about vibrancy in the financial sector development.
The National Treasury has identified Kenya Credit Guarantee Scheme Bill, Financial Services Authority (FSA) Bill, the Securities, Investments and Derivatives Bill as crucial legislations that are among others expected to deepen the sector.
The financial sector is at the centre stage the government’s plans to deliver promptly and efficiently the four agenda which include food security, affordable housing, manufacturing and healthcare.
Development of the sector is among others expected to boost revenue, enhance financial inclusion, bring stability and mobilize savings.
The national treasury is looking to increase credit access to the small and medium enterprises with enactment of the Kenya Credit Guarantee Scheme Bill.
This is expected to allow public private partnership structure for credit guarantee scheme.
Further, consolidation of the Capital Markets Authority, Insurance Regulatory Authority, Sacco Societies Regulatory Authority and Retirements Benefit Authority in to a Financial Services Authority is expected to eliminate regulatory gaps and increase consumer protection while ensuring non-bank financial service providers are license by a single body and minimize red tapes.
FSA Bill still awaits enactment.
Similarly, the Government will expedite the enactment of the Securities, Investments and Derivatives Bill; expand the new derivatives market; strengthen capital markets infrastructure and institutions, diversify capital markets products and services.
In future, counties are also expected to be able to raise funds though the capital markets.
Amalgamation of Central Securities Depositories operated by central bank and the central depository and settlement corporation under a single Central Securities Depository is also expected to be finalized.
The state is further seeking to catalyze mobilization of long term domestic funds through insurance and pension funds.
This will be done through new legal and product development and training of institutional investors in order to expand long term assets.