Academic literature on the topic 'Kenyan Banking system'
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Journal articles on the topic "Kenyan Banking system"
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Fan, Hong, Allan Alvin Lee Lukaya Amalia, and Qian Qian Gao. "The Assessment of Systemic Risk in the Kenyan Banking Sector." Complexity 2018 (2018): 1–15. http://dx.doi.org/10.1155/2018/8767836.
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The present paper aims to assess the systemic risk of the Kenyan banking system. We propose a theoretical framework to reveal the time evolution of the systemic risk using sequences of financial data and use the framework to assess the systemic risk of the Kenyan banking system that is regarded as the largest in the East and Central African region. Firstly, we estimate the bilateral exposures matrix using aggregate financial data on loans and deposits from annual reports and analyze the interconnectedness in the market using network centrality measures. Next, we extend the Eisenberg–Noe method to a multiperiod setting to the systemic risk of the Kenyan banking system, in which the multiperiod includes the dynamic evolutions of the Kenyan banking system of every bank and the structure of the interbank network system. We apply this framework to assess dynamically the systemic risk of the Kenyan banking system between 2009 and 2015. The main findings are the following. The theoretical network analysis using network centrality measures showed several banks displaying characteristics of systematically important banks (SIBs). The theoretical default analysis showed that a bank suffering a basic default will trigger a contagious default that caused several other banks in the sector to go bankrupt. Further stress test proved that the KCB bank theoretically caused a few contagious defaults due to an unusually high interconnectedness. This methodology can contribute by being part of monitoring system of the Central Bank of Kenya (regulatory body) as well as the implementation of policies (such as bank-internal stress tests) that assist in preventing default contagion.
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Nyasha, Sheilla, and Nicholas M. Odhiambo. "Banking sector reforms in Kenya: Progress and challenges." Corporate Ownership and Control 10, no. 1 (2012): 88–96. http://dx.doi.org/10.22495/cocv10i1art8.
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This paper gives an overview of the banking sector in Kenya; it highlights the reforms since the country‟s independence in 1963; it tracks the growth of the banking sector in response to the reforms implemented over the past four decades; and finally, it highlights the challenges facing the banking sector in Kenya. The country‟s banking sector consists of more than 40 commercial banks, with the Central Bank of Kenya, which is the country‟s central bank, at the apex. Since the 1980s, the Kenyan government has implemented a number of banking sector reforms – in order to safeguard and improve the banking sector. The response to these reforms by the banking sector has been varied. As a result of these reforms, there has been a shift in the dominance from the State-owned banks to the private commercial banks. There has also been an improvement in the Central Bank‟s oversight of the financial institutions, and an enforcement of the banks‟ capital-adequacy requirements. By the standards of African countries, Kenya currently has one of the most developed banking systems in Africa. The country has enjoyed a substantial bank-based financial sector development over the years, and its institutional framework has also grown stronger. However, like many other developing countries‟ financial systems, the Kenyan banking system still faces wide-ranging challenges, such as high interest rate spreads and financial inclusion challenges
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Mutisya, Maria Mueni, and Gerald Atheru. "Electronic Banking and Financial Performance of Commercial Banks in Kenya." International Journal of Current Aspects 3, no. II (May 31, 2019): 293–304. http://dx.doi.org/10.35942/ijcab.v3iii.24.
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Information technology has changed the traditional ways of doing business to a digital and electronic way that has led to globalization. The banking industry has been forced by the wave of electronic payment system in the business environment to change from its traditional ways such as: long queues as customers waited to be served, delay in the clearing house as representatives of different banks waited to settle their dues and manual work that resulted to errors. The main purpose of the study was to determine the effect of electronic banking on the financial performance of commercial banks in Kenya. The specific objectives were to determine the extend of internet, mobile, automated teller machine and debit/credit card banking adoption and its effect on financial performance. The study covered a period of five years that is from the year 2011 to the year 2015 and adopted descriptive research design. The data collected was analyzed by the use of both descriptive and inferential statistics procedures. Primary and secondary data was collected from the 34 commercial banks that responded leading to a respond rate of 79.04% out of the 43 commercial banks. The trade analysis showed that internet banking was recognized and accepted by the Kenyan commercial banks and the Kenyans as a way of transacting. Electronic banking was found to be positive and significantly related to the financial performance of the commercial banks in Kenya. This was attributed by an R Square of 0.688 for Return On Assets, 0.63 for Net Profit and 0.277 for Return On Equity indicating that the independent variables in the study were able to give information of up to 68.8%, 63% and 27.7% respectively while the remaining 31.2%, 27% and 72.3% could not be explained in the study but could be explained using other variables outside the study. All the independent variables were (internet banking, Mobile banking, Automated Teller Machine banking and Debit/Credit banking) found to be positively and significantly related to the Return On Assets while only mobile banking and internet banking were found to be positively and significantly related to Net Profit since their p Values were less 0.05. Automated Teller Machine banking showed a positive relation that was insignificant with the Return On Equity.The study recommends that, electronic banking should be employed by commercial banks through proper management policies since it has shown improved efficiency and financial performance. For further studies, areas of crime technology, quality of banking services, electronic fund transfer and performing loans should be looked at.
This is an open-access article published and distributed under the terms and conditions of the Creative Commons Attribution 4.0 International License of United States unless otherwise stated. Access, citation and distribution of this article is allowed with full recognition of the authors and the source.
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Baer, Wolfgang, Ahmed Bounfour, and Thomas J. Housel. "An econophysics non-monetized theory of value." Journal of Intellectual Capital 19, no. 3 (May 14, 2018): 519–35. http://dx.doi.org/10.1108/jic-01-2017-0001.
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Purpose Mobile phones are radically transforming micro-finance in Sub-Saharan Africa, and Kenya, in particular. The introduction of the micro-financial transaction mobile phone application, “MPesa,” created a means to facilitate micro-transactions without the need for an intermediary, such as a banking system. The purpose of this paper is to posit an econophysics model to predict the value of Mpesa for Kenyan and South African consumers. The econophysics framework posits several fitness matrices and a distance measure that can account for the concepts of mass, distance, momentum, velocity, action, and force. The authors begin with a table of the match between the physics concepts and the economic concepts followed by the vector model that utilizes these concepts for the MPesa application case. In this paper, the authors will argue that MPesa succeeded in Sub-Saharan African countries, such as Kenya, because the fit between what this group of customers needed and the solutions Safaricom’s MPesa offered was a better fit with a smaller distance to adoption than in the South African case. Design/methodology/approach The research develops an econophysics approach to the assessment of micro-finance development in Sub-Saharan countries. Findings The research shows clearly the reasons of the success of MPesa in Kenya in comparison of its relative failure in South Africa: the distance between customers’ expectations and the system supply. Research limitations/implications The research is limited to two case studies and needs to be extended to other contexts, in order to demonstrate its robustness, especially with regard to the intangible dimension, e.g., the distance between a system potential and what it really offers. Practical implications The research shows the importance of system’s characteristics in its success. Social implications The social implications are very high, especially in this case, where micro-finance is a high stake for developing societies. Originality/value This is one of the first works to develop an econophysics approach for the evaluation of the key characteristics of a system.
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Alubisia, L’souza Boniface, Wainaina Githii, and Mirie Mwangi. "Effect of Technology Based Financial Innovations on Non-Interest Income of Commercial Banks in Kenya." European Scientific Journal, ESJ 14, no. 7 (March 31, 2018): 337. http://dx.doi.org/10.19044/esj.2018.v14n7p337.
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Technology based financial innovation has had a great impact on the financial industry as a whole over the past few decades. It has presented the banking sector with an opportunity to increase the revenue base. This study intended to identify the impact of technology based financial innovation on non-interest income in Kenyan commercial banks. The study investigated how the adoption of ATMs and Cards, Internet and Mobile Banking and use of Funds Transfer Systems such as RTGS and EFT has impacted the non-interest income of commercial banks in Kenya. Descriptive research design was utilised. The study found that technology based financial innovation has significant effect on the non-interest income earned by commercial banks in Kenya. It recommends all stakeholders in commercial banks to take any investments made towards technology based financial innovation products as a strategy to improve non-interest income
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Nzuve, Stephen N. M., and Edith A. Omolo. "A STUDY OF THE PRACTICE OF THE LEARNING ORGANIZATION AND ITS RELATIONSHIP TO PERFORMANCE AMONG KENYAN COMMERCIAL BANKS." Problems of Management in the 21st Century 4, no. 1 (July 15, 2012): 45–56. http://dx.doi.org/10.33225/pmc/12.04.45.
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The objective of the study was to investigate the extent of the practice of the learning organization within the Kenyan commercial banks and determine the relationship between the aforementioned practice with organizational performance. The study adopted a descriptive survey design. It was a census survey comprising all the 43 banks licensed to operate in Kenya under the banking Act. The sample frame included all the commercial banks listed in the Central Bank of Kenya website. The 43 banks were further divided into 3 tiers based on profitability for the year 2008 as indicated in the Banking Survey 2009. Primary data was collected using a structured questionnaire while secondary data regarding organizational performance was obtained from the banking survey 2009. The data collected was analysed using descriptive statistics in terms of frequency and percentage tabulations, cross tabulations and Pearson’s correlation coefficient to determine the relationship between the practice of the learning organization and organizational performance. The study established that most Kenyan commercial banks had to a large extent adopted the following practices adopted by most organizations: development of information systems designed to inform and empower, formative accounting control, learning approach to strategy development, participative policy making, reward flexibility and supportive leadership. The practices least adopted were the ones involved in enabling structures, creating a learning climate and boundary workers as environmental scanners. Findings indicate that there is an inverse relationship between the practice of the learning organization and organizational performance. This would suggest that there are other factors that have to be taken into account to determine and explain this discrepancy, hence the need for further study. In conclusion, the study established that two thirds of the Kenyan banks had adopted the practices of the learning institution. The study also indicates that there is a tendency for Kenyan commercial banks to focus on certain aspects of the learning organization instead of seeing the whole picture and focusing on the organization as a dynamic entity. Interest in the learning organization has been stimulated by the need to attain sustainable competitive advantage The researcher recommends that the Kenyan commercial banks should embrace more systematic, definite and concrete steps towards adopting a learning culture, in order to survive the onslaught of competitive forces in the global market. The study suggests further investigation into whether the practices were adopted as part of a systematic strategy to develop the banks as learning organizations or whether they were simply adopted on an ad hoc basis for purposes of expediency and organizational survival. Key words: learning organization, organizational learning culture, performance indicators, sustainable competitive advantage, global business environment.
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Kibicho, Nahashon Kairo, and John Mungai. "Mobile Banking Adoption and Financial Credit Accessibility in Wote Sub – County, Makueni County, Kenya." International Journal of Current Aspects 3, no. IV (July 6, 2019): 65–79. http://dx.doi.org/10.35942/ijcab.v3iiv.47.
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Although the financial system is a vital component of the socio-economic development of any nation, most Kenyans lack access to formal financial credit services. This arises due to the cause of putting up bank branches in the rural areas is deemed not economically viable. Most banks have partnered with Mobile Network Operators to help mitigate this problem by introducing the use of Mobile banking (M-banking) technology in accessing vital banking services such as financial credit. However, this effort may not attain success if the factors inhibiting the use of M-banking technology have not been assessed. The purpose of this study was to establish the effect of Mobile banking adoption on financial credit accessibility by residents in Wote sub-county. This study was necessitated by the current emerging trend of accessing financial credit through the Mobile banking system. This study adopted a technology acceptance model to establish the effects of adopting mobile banking and its application in use of banking services among residents of Wote sub-county. The study was guided by the following objectives: To establish the effect of perceived usefulness, perceived ease of use, and perceived risk of using mobile banking technology and financial credit accessibility in Wote sub-county, Makueni county, Kenya. Descriptive research design was employed in which the study population comprised the residents of Wote sub-county. The target population of the study consisted of 137,944 mobile money users across both banked and non-banked population in Wote sub-county and the sample size comprised of 138 participants who were selected through the use of simple random sampling technique. Data was collected using a questionnaire whose reliability was established by use of Cronbach’s Alpha. All items in the questionnaire had a score of above 0.7 which was deemed to be the acceptable threshold. The questionnaires were administered through drop and pick later method. The data collected was processed and analysed using SPSS. Descriptive statistics such as percentages, frequencies, standard deviation and mean scores were used. Afterwards, the research findings were presented using frequency tables, pie charts and bar graphs. Multiple regression analysis was used to analyse and draw inferences from the research data. The results indicated that perceived usefulness of mobile banking technology perceived ease of use of mobile banking technology, and perceived risk of using mobile banking technology were statistically significant in accessing of financial credit. The intervening variable- customers’ attitude- was found to be non-significant. This study recommended that both the banks and MNO’s to continuously invest in product improvement of mobile banking systems to ensure the uptake of mobile credit is enhanced. The study also recommended that the financial service providers should engage in education and extensive customer awareness on use of mobile applications to access mobile credit as well as draw up strategies to reduce the mobile phone operational costs such as the interest charged on mobile loans which are a major hindrance. Further, the banks and MNO’s should increase extra security features in their systems to increase trust in accessing mobile credit. Finally, the service providers should make mobile banking more user friendly for ease of financial credit access by incorporating graphics interface.
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Mugane, Maurine, and Reuben Njuguna. "Mobile Banking Services with Financial Performance on Commercial Banks in Kenya." International Journal of Current Aspects 3, no. VI (November 22, 2019): 176–92. http://dx.doi.org/10.35942/ijcab.v3ivi.84.
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The competition dimensions have changed following the adopting of various internet banking services that came about as a result of technological innovations such as the introduction of Automated Teller Machines (ATMs), phone banking Personal computer banking which were some of the first innovations of electronic finance. The main objective of this study was to establish the impact of mobile banking services on the financial performance of commercial banks in Kenya. The specific objectives guiding this study included to assess the influence of short message service (SMS) banking on the financial performance of commercial banks in Kenya, to establish the effect of person to person payments on the financial performance of commercial banks in Kenya, to determine the effect of bill payments on the financial performance of commercial banks in Kenya and to find out the effect of airtime top up service on the financial performance of commercial banks in Kenya. The research design that the study adopted was a descriptive research design employing quantitative research strategies. In this study the target population under investigation was all the 40 commercial banks in Kenya. Since in the current study the target population was 80 participants from all the 40 commercial banks in Kenya a census inquiry method was the best method used. Primary data for this study was collected through the use of a questionnaire that was given senior managers from all the departments of these organizations. Both quantitative and qualitative data was generated in this study. Qualitative data was analysed using content analysis whereby content of responses was looked at and responses were grouped together in relation to common patterns or themes for coherent categorization. Descriptive statistics included measures of central tendency and dispersion thus standard deviation and mean and use of absolute and relative percentage frequencies. Presentation of quantitative data was in form of graphs and tables and explanation given in prose. The study findings show that short message service had an above average positive correlation with financial performance of commercial banks and was statistically significant. Person to person had an average correlation with financial performance of commercial banks and was statistically significant. Bill payments had a strong positive correlation with financial performance of commercial banks and was statistically significant. Airtime top up service had an strong positive correlation with financial performance of commercial banks and was statistically significant. The study concludes that short message service banking has become and important part of banking, more and more people prefer to receive banking alerts through short message service which has not only improved service delivery but has had a positive impact on financial performance. Commercial banks have experiences large revenues from different activities with the banking system core among them the bill payments activities. The study recommends that it is important for commercial banks to focus more on short message service banking to lower operational costs thereby improving financial performance. Commercial banks need to consider using person to person payments to improve on their performance, they need to enhance their bill payments to get more clients paying bills using their systems so as to improve on their financial performance and that it is important for commercial banks to put more effort on airtime top up service so as to improve on their financial performance.
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Karimi, Kirima Lucy. "Effects of Agency Banking on Bank Performance: A Case of Equity Bank Meru Branch, Kenya." Business and Economic Research 8, no. 4 (November 21, 2018): 100. http://dx.doi.org/10.5296/ber.v8i4.13941.
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The purpose of this study was to establish the effects of agency banking on bank performance with a focus of Equity Bank Meru Branch, Kenya. The reason for the selection of Equity Bank was because of its large customer base and because of its growth. The study adopted a descriptive research design and the target population was the eighteen agency bank agents. The study used stratified random sampling to select 11 agents that were used in the study. Both quantitative and qualitative data was collected by use of questionnaires with both open and closed ended questions. Data was analyzed and presented using descriptive statistical tools. The study findings indicated that the general cost such as operations and transactions cost were still high even for agency banking, security measures were in place that is physical security though it needed strengthening, transaction security and customer security were not good and needed improvement and the regulations that were in place for agency banking also needed to be improved. The study made the following recommendations: For agent banking operations to be effective, strong internal control systems should be put in place which should be flexible and be evaluated periodically to increase efficiency and effectiveness; there should also be frequent updates of regulations and policies that guide agency banking and procedures that are used in the banking and agency industry in Kenya. Bankers Association in consultation with the Central Bank of Kenya should carry out frequent audit and research in relationship to agency banking to determine any loopholes and challenges in order to advice the banks accordingly. Also banks should work closely with the agents in order to streamline the systems and processes to help achieve efficiency. The results gathered out of the audit and research will help the banks to keep their agents updated.
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Abubakar, Abbas Said, and Dr Josiah Aduda. "ISLAMIC BANKING AND INVESTMENT FINANCING: A CASE OF ISLAMIC BANKING IN KENYA." International Journal of Finance 2, no. 1 (January 23, 2017): 66. http://dx.doi.org/10.47941/ijf.42.
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Purpose: The purpose of this study was to establish the effect of Islamic banking on investment financing in Islamic banks in Kenya.Methodology: This study employed descriptive survey design. The population of this research consisted of 8 commercial banks offering Shariah compliant products. The study used secondary data for the period 2009 to 2012. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results were presented in frequency tables and figures. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings indicated that there were various Islamic banking products that Islamic banks used to finance their investments. This included motor vehicle financing, mortgage financing, asset financing, real estate financing, trade financing and SME financing. The study also indicated that there were various modes of financing used by Islamic banking such as profit and loss sharing, Ijara and murahaba. Regression results revealed that motor vehicle financing was statistically significant in explaining loans advanced to customers in Islamic banks. However mortgage financing, asset financing, real estate financing, trade financing and SME financing were not statistically significant in explaining loans advanced to customers in Islamic banks but they were positively correlated.Unique contribution to theory, practice and policy: The study recommends that the management of the banks to get well equipped and competent employees on Islamic banking products as most Islamic banks are currently managed by people who have been educated and trained in the conventional banking system. Thus, more time may be required for the unique characteristics of Islamic financial instruments to be completely accepted and understood by both bank personnel and customers. It is also recommended that the terms and conditions of acquiring a loan be made more appealing and considerate for more investors to approach the banks for assistance as the Shari`ah restricts the type of businesses for which Islamic banks can provide financing.
Dissertations / Theses on the topic "Kenyan Banking system"
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Barako, D. G., and G. Tower. "Kenyan banking environment: corporate governance reforms." Thesis, Ukrainian Academy of Banking of the National Bank of Ukraine, 2007. http://essuir.sumdu.edu.ua/handle/123456789/60594.
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Wasike, Sylvia Nasambu. "Analysis Of ICT Policies And Regulations In The Mobile Sector In Kenya : Interpretive Study Of Mobile banking Service." Thesis, Norges teknisk-naturvitenskapelige universitet, Institutt for datateknikk og informasjonsvitenskap, 2011. http://urn.kb.se/resolve?urn=urn:nbn:no:ntnu:diva-14144.
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Alot of research has been done on the rise of m-banking service in Kenya and most notably by Olga in her PHD theses and others and they all have research on how thriving the service is majorly attributed to the adoption and acceptance of the service through ease of use e.t.c.It can be noted that any service like such require ICT in place.Through use of ICT innovation in the mobile industry has grown especially with use of mobile phone to offer financial services in Kenya. Even though Kenya as a country is still lagging behind in other areas with growth and expansion of ICT when it comes to the mobile industry this is different and it is seen as a major leap to offering banking services without necessarily going to the bank. Understanding how the m-banking service is thriving and growing is far from just mere adoption and ease of use, with my thesis i try to analyze the challenges and opportunities that exist for the mobile industry in Kenya. I tackle m-banking service in particular and as can be noted no service can be allowed to operate without rules and regulations and as such what makes this service thrive if not the ICT policies in place and what strategies and practices employed by the mobile operators have worked for them.The research presented here is an interpretative study of the 4 mobile operators in Kenya.To maintain the subscribers the operators have to be innovative enough to create value added services in line with the regulations in place.
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Mwangi, James Boniface. "Analysis of designed and emergent consequences of mobile banking usage by SME’s in Kenya using ethnographic decision tree modeling." Doctoral thesis, University of Cape Town, 2014. http://hdl.handle.net/11427/12865.
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Includes bibliographical references.Evaluating the impact of Information and Communications Technologies for Development (ICT4D) has been a challenge both in terms of theoretical and methodological approaches. It has been pointed out in extant literature that ICT4D impact studies are few compared to those that investigate determinants of adoption. Knowledge of this scarcity and the theoretical and methodological limitations led to the conception of this study. This study set out to investigate the decision criteria evaluated by Kenyan micro, small and medium enterprises (MSMEs) when making the initial mobile banking adoption and usage decisions with a view to unearth the designed and emergent consequences. Ethnographic decision tree modelling (EDTM) which is a cognitive research methodology was feasibly employed to obtain the adoption and usage decision criteria from which quantifiable and non-quantifiable consequences were then inferred. Structuration theory was used as a theoretical lens to view the complex context in which mobile banking is embedded and adopted by MSMEs. The analysis of the empirical data obtained from the MSMEs led to the construction and testing of three decision models from which the study’s theory was developed. The derived theory demonstrates the existence of structurational interactions among decision criteria, antecedents of technology adoption, behavioural intention to adopt, and the designed and emergent consequences of actual usage. The study further reveals that contrary to popular belief and argument that adoption of mobile banking technology lowers financial services cost, Kenyan MSMEs adopt the technology not because of its affordability but because of other factors such as perceived usefulness, accessibility, safe custody of daily income, limited organizational capabilities, perceived ease of use, social capital and trust structures. The derived explanatory-predictive theory provides findings that may have significant implications for fiscal and monetary policymakers, development experts and mobile banking technology designers.
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Okong'o, Brender Adhiambo. "Factors supporting the learning of retail banking information and communication technology systems : a western Kenyan region perspective." Diss., 2018. http://hdl.handle.net/10500/24841.
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This study identified and empirically investigated individual employee, organisational and information and communication technology (ICT) systems factors to determine the extent to which these factors support employees’ learning of the adopted retail banking ICT systems before undergoing training. Quantitative research approach was followed. A realised stratified random sample of 237 respondents consisting of tellers and customer care consultants (one group) and line managers (second group), working at branches of various retail banks in the western region of Kenya, participated in this study.
Descriptive, exploratory factor and inferential statistical analyses were conducted. The results showed: a high level of agreement with the identified factors; significant positive linear relationships between the factors; statistical significant differences (p<0.05) between the respondent groups and between the categories for each demographic variable with regard to the respondents’ level of agreement with each factor. Supportive and directive learning strategies were recommended for retail banking employees before training.Business Management
M. Com. (Business Management)
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Perlman, Leon Joseph. "Legal and regulatory aspects of mobile financial services." Thesis, 2012. http://hdl.handle.net/10500/13362.
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The thesis deals with the emergence of bank and non-bank entities that provide a range of unique
transaction-based payment services broadly called Mobile Financial Services (MFS) to unbanked,
underserved and underbanked persons via mobile phones.
Models of MFS from Mobile Network Operators (MNOs), banks, combinations of MNOs and banks, and
independent Mobile Financial Services Providers are covered. Provision by non-banks of ‘bank-type’
services via mobile phones has been termed ‘transformational banking’ versus the ‘additive banking’
services from banks. All involve the concept of ‘branchless banking’ whereby ‘cash-in/cash out’ services
are provided through ‘agents.’
Funds for MFS payments may available through a Stored Value Product (SVP), particularly through a
Stored Value Account SVP variant offered by MNOs where value is stored as a redeemable fiat- or mobile
‘airtime’-based Store of Value.
The competitive, legal, technical and regulatory nature of non-bank versus bank MFS models is discussed,
in particular the impact of banking, payments, money laundering, telecommunications, e-commerce and
consumer protection laws. Whether funding mechanisms for SVPs may amount to deposit-taking such that
entities could be engaged in the ‘business of banking’ is discussed. The continued use of ‘deposit’ as the
traditional trigger for the ‘business of banking’ is investigated, alongside whether transaction and paymentcentric
MFS rises to the ‘business of banking.’
An extensive evaluation of ‘money’ based on the Orthodox and Claim School economic theories is
undertaken in relation to SVPs used in MFS, their legal associations and import, and whether they may be
deemed ‘money’ in law.
Consumer protection for MFS and payments generally through current statute, contract, and payment law
and common law condictiones are found to be wanting. Possible regulatory arbitrage in relation to MFS in
South African law is discussed.
The legal and regulatory regimes in the European Union, Kenya and the United States of America are
compared with South Africa. The need for a coordinated payments-specific law that has consumer
protections, enables proportional risk-based licensing of new non-bank providers of MFS, and allows for a
regulator for retail payments is recommended. The use of trust companies and trust accounts is
recommended for protection of user funds.
| viPublic, Constitutional and International Law
LLD
Books on the topic "Kenyan Banking system"
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Njoroge, Patrick, and Victor Murinde, eds. 50 Years of Central Banking in Kenya. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.001.0001.
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This book documents important milestones in the epic journey traversed by the Central Bank of Kenya over the last 50 years, putting into perspective the evolution of central banking globally and within the East African region, and contemplating future prospects and challenges. The book is timely, mainly because the global financial landscape has shifted. Central bankers have expanded their mandates, beyond the singular focus on inflation and consider economic growth as their other important objective. Financial crises have continued to disrupt the functioning of financial institutions and markets, the most devastating episodes being the global financial crisis, which broke out in 2008 and from which the global financial system has not fully recovered, and the unprecedented challenges posed by the global coronavirus pandemic. Bank regulation has moved from Basel I, to Basel II, and somehow migrated to Basel III, although some countries are still at the crossroads. The book originated from the wide-ranging discussions on central banking, from a symposium to celebrate the 50 year anniversary on 13 September 2016 in Nairobi. The participants at the symposium included current and former central bank governors from Kenya and the Eastern Africa region, high-level officials from multilateral financial institutions, policy-makers, bank executives, civil society actors, researchers and students. The book is an invaluable resource for policy-makers, practitioners, and researchers, on how monetary policy and financial practices in vogue today in Kenya have evolved through time and worked very well, but also about some pitfalls.
Book chapters on the topic "Kenyan Banking system"
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Arthi, M. C., and Kavitha Shanmugam. "Financial Inclusion via Mobile Banking – A Comparison Between Kenya and India." In Re-imagining Diffusion and Adoption of Information Technology and Systems: A Continuing Conversation, 561–69. Cham: Springer International Publishing, 2020. http://dx.doi.org/10.1007/978-3-030-64849-7_50.
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Mugo, Matu, Kilonzo Evelyne, and Anne W. Mariga. "Powering Financial Inclusion through Innovative Payment Systems." In 50 Years of Central Banking in Kenya, 349–80. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0016.
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Over the past 50 years, Kenya’s payments and banking systems have undergone both incremental and revolutionary modifications that have transformed Kenya’s financial landscape, from cash transactions to digital finance ecosystems. M-PESA, rolled out in 2007, undoubtedly has earned its place in Kenya’s Hall of Fame. The developments in the payments system have culminated in a more accessible, effective and efficient Kenyan payment system. This chapter tells the M-PESA story from the lens of a regulator, from conception to the eventual launch in March 2007. More importantly, the chapter tells other understated stories of payments and related banking sector innovations that have seen the level of financial inclusion in Kenya triple from 26 per cent in 2006 to over 75 per cent in 2016. The chapter provides lessons learnt in this transformational journey, one being the need for regulators to understand the business models underpinning innovations, risks thereon, and their mitigating factors.
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Mueni, Joy. "Financial Inclusivity." In Advances in Finance, Accounting, and Economics, 231–52. IGI Global, 2020. http://dx.doi.org/10.4018/978-1-7998-2398-8.ch011.
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M-Pesa is a mobile phone-based money transfer system in Kenya that was introduced in 2007 by Safaricom, a subsidiary of Vodafone. Since its inception, the mobile money industry has witnessed some unprecedented growth mainly due to the diverse products, key among them M-Pesa. Powered by the over 100% mobile phone penetration in Kenya, M-Pesa has revolutionized the social and economic lives of Kenyans. In this chapter, using case studies, the author explores the impact M-Pesa has had on women in Kenya. In reference to banking, the author looks at the regulations, polices, and restrictions of M-Pesa against the formal banking industry to understand which is more suited to women and hence its rate of adoption. Another parameter that the author explores is the convenience that M-Pesa guarantees the user and how this has impacted on the effectiveness and efficiency of transactions among women.
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Thotho, Leonard, Caroline Wanjiku, and Daniel Amanja. "Development of the Government Securities Market in Kenya." In 50 Years of Central Banking in Kenya, 381–423. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0017.
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This chapter evaluates developments in the domestic government securities market in Kenya during the period 1966 to 2016, a 50-year period since the Central Bank of Kenya was established. The chapter traces the evolution of Kenya’s government securities market starting with the legal and regulatory framework, evolution of the issuance policy, developments in both the primary and secondary market for government securities over time and some of the milestones achieved during the period under review. Among the key milestones include development of a reliable domestic financing programme for the government, development of benchmark bonds and a government securities yield curve, development of market infrastructure, and diversification of products in the market such as infrastructure bonds. Kenya plans to further deepen her government securities and capital markets, through launch of new products, modernization of trading system and establishment of over-the-counter market for government securities.
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Ferrand, David, and Ignacio Mas. "Do Central Banks Have a Role in Financial Inclusion?" In 50 Years of Central Banking in Kenya, 119–37. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0008.
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The chapter focuses on the role of central banks in fostering financial inclusion and specifically on the potential impact of financial inclusion on financial stability and economic growth. It examines the expansion of financial inclusion, from the reliance on informal solutions to the availability of formal services, through the engagement of policy-makers who have impacted on the way the financial sector has developed to be increasingly networked, driven by digitization, and supported by digital mobile networks. It highlights Kenya’s global success in financial inclusion; Kenya is used as a case study in central bank management, financial inclusion, and its contribution to economic development. It concludes by pointing out the risks associated with the absence of countervailing policies by financial institutions which may lead to unexpected losses to the financial system, and ultimately a banking crisis.
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Njoroge, Patrick, and Victor Murinde. "Reflections on Central Banking." In 50 Years of Central Banking in Kenya, 15–38. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0003.
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This chapter seeks to code the milestones on the epic journey of central banking from the initial conditions, through the transition, to modern policy and practice today, in a global context and Kenyan perspective. It is argued that although developments in economic theory, evidence, and policy have entrenched the robustness of central banking today, some unresolved issues persist: the issue of central bank independence; exchange rate regime outcomes in natural resource rich countries; bank regulation is still at the crossroads; the challenges presented by globalization and convergence of banking systems are real. The chapter concludes with a futurology of central banking: the future of bank regulation cannot ignore peer monitoring and market discipline; the primary mandate of central banks should be price stability but with some flexibility to respond to extraordinary circumstances; and central bank independence (personnel, financial, and policy independence) is critical for modern central banks.
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Abbaszadeh, Babak. "Financial Stability and Bank Supervision in the Twenty-First Century." In 50 Years of Central Banking in Kenya, 86–91. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0006.
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This chapter addresses the challenges and opportunities for financial stability and bank supervision in the twenty-first century. It is argued that one of the major challenges to the vision of achieving a world where the financial systems are stable, reliable, and accessible was the 2008 global financial crisis. The G20 took up an agenda to improve regulation and supervision regimes globally through initiatives such as higher capital requirements and new liquidity regulations. However, challenges have emerged due to advances in technology, financial innovations, climate change, legislative or regulatory barriers and money laundering, organized crime, corruption, and the financing of terrorism. In particular, supervisors in developing economies face the challenge of how to ensure financial stability while at the same time promoting the development of the financial system to sustainable economic growth for poverty reduction and greater equality.
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Chironga, Cappitus, Matu Mugo, and Daniel Tallam. "Evolution of the Financial Sector in Kenya." In 50 Years of Central Banking in Kenya, 304–48. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0015.
Full textAbstract:
Kenya’s financial system has evolved over the last 50 years, having experienced many setbacks, innovations, successes, and radical transformation in terms of services and products, policies, regulatory frameworks, and linkages. The evolution reflects ever-changing consumer needs, alignment with global standards, and growing complexity. The financial system has become highly interconnected, grown exponentially, expanded across the East African region, and become highly integrated to the real economy. Banking industry however remains the largest in terms of share of assets to nominal GDP, but declining. Adoption of digital financial services continues to create opportunities through new products, innovations, and delivery channels, thus enhancing in-country and cross-border integration. Continued policy and regulatory reforms anchored in Kenya’s Vision 2030 and EAC Customs Union Protocol will further upscale the system to global standards. However, regulators and policy makers are aware of possible risks to the system stability and stand ready to take mitigation measures.
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Furusawa, Mitsuhiro. "Monetary Policy and the Future of Central Banking." In 50 Years of Central Banking in Kenya, 9–14. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0002.
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The chapter highlights the state of monetary policy in Africa and explores the challenges that central banks face as they address the increasingly complex forces at work in the global economy. It sequences the evolution of monetary policy from the time of World War II under the Bretton Woods system to the more recent forward-looking monetary policy in advanced economies and relates it to influencing the evolution of monetary policy frameworks in Africa. Some challenges affecting African countries are identified, including the collapse of commodity prices, persistent high interest rates spreads, and limitations of high frequency data that constrain monetary authorities’ abilities to take corrective actions in a timely manner. The chapter concludes by providing seven principles towards increasing the effectiveness of monetary policy for countries seeking to move towards forward-looking monetary policy frameworks.
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Ndirangu, Lydia, Kethi Ngoka-Kisinguh, and Esther Kariuki. "The Structure of the Interbank Market in Kenya." In 50 Years of Central Banking in Kenya, 424–62. Oxford University Press, 2021. http://dx.doi.org/10.1093/oso/9780198851820.003.0018.
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This chapter discusses the evolution of the network structure of Kenya’s overnight market. It applies several measurements derived from network theory to uncover some key microstructure characteristics and the nature of the interbank market segmentation. An important issue is to understand what opportunities and challenges the structure of the interbank network presents for liquidity management and stability of the banking system. The results reveal a fragmented market, consisting of local clusters with hub-like and periphery banks. These features seem to become more prominent with time. Although the interbank structure is largely incomplete (density of about 0.25), each bank can be linked to all other banks in the network in no more than three steps. While this may imply that the core potentially provides an efficient shortcut for most peripheral banks for accessing liquidity in the network, the short-path length suggests that contagion can also spread with ease.