Central Bank appointed G20 financial partner

Central Bank of Kenya has been appointed a non-G20 member of the newly established Global Partnership for Financial Inclusion (GPFI).


The partnership followed the G20 Summit in Seoul and comes as a step toward mainstreaming financial inclusion in the global economic agenda.

CBK inclusion is seen as recognition of the bank’s huge strides in roping in millions into mainstream banking in Kenya.

Kenya is viewed as model in inclusion especially in the backdrop of utilising the fast-growing mobile telephony network for financial services.

The Safaricom M-Pesa service has particularly captured the imagination of the world and spawned banking spin-offs by the cellular services firm and all its competitors.

Governor Njuguna Ndun’gu who delivered a speech during the GPFI launch in Seoul, while expounding on steps Kenya had taken, commended the rich nation’s group for initiating the financial inclusion action plan and a flexible SME finance framework.

“Central Bank supported and facilitated a roll out of the mobile phone money transfer service three and a half years ago that has so far led to over 15 million Kenyans being integrated into the financial system,” governor Njuguna Ndun’gu told the delegates.

Stifle innovation

He admitted previous regulatory regimes in the developing world had tended to stifle innovation but that appears to be changing in many jurisdictions including Kenya.

“Recent innovations by the CBK to support financial inclusion include: the introduction of agent banking; licensing of deposit taking microfinance institutions and credit reference bureaus to provide for information capital and improve on the collateral technology in use.”

Prof Ndun’gu praised the role played by networking in furthering the course of inclusion citing Association of Financial Inclusion launched last year and which brings together 50 countries as a model for information sharing.

Kenya is the chair of its steering committee: “Knowledge exchanges by AFI members on agent banking in Brazil, Mexico and Colombia, mobile phone financial services in Kenya and the Philippines and consumer protection in Malaysia have fast-tracked development of financial inclusion policies in AFI member countries.”

Source: http://www.nation.co.ke