Banks should be agents of sustainable Growth and Development

Kenya Bankers Association (KBA), the umbrella body of the country’s banking sector, has marked its 50^th Anniversary with a renewed commitment to closer stakeholder engagement within the industry and with external stakeholders.

 

At a colourful ceremony presided over by African Development Bank Group President, Donald Kaberuka, and attended by Finance Minister,Njeru Githae and Central Bank of Kenya Governor,  Njuguna Ndung’u, the Association took stock of the milestones the sector has achieved since KBA’s inception on July 16, 1962.

Speaking at the event which was attended by representatives of the public and private sector as well as the international development community, President Kaberuka noted that Africa has embarked on a new era which has set it at the epicenter of discussions surrounding global economic growth.

                                                                                                                           

“We have tremendous potential as a Continent and we must work together, through private-public sector collaboration, to seize the moment for the long-term benefit of our nations and our people,” said President Kaberuka. 

“Across Africa, we see more Governments re-establishing -- and in the case of the newer countries, establishing -- the macroeconomic frameworks we will need to fast-track economic development. 

“It is the role of all the players, and particularly the banks, to leverage these advancements to become agents of sustainable growth and development,” Mr. Kaberuka concluded

For his part, KBA Chief Executive Officer, Habil Olaka, explained that the Association had aligned its policies to address the fast-changing banking environment both locally and on the international front. He said KBA will engage stakeholders through four strategic pillars, namely research-based policy formulation, industry promotion and development, public education, and social responsibility.

KBA Chairman, Richard Etemesi, said that Kenya’s banks were committed to supporting the country to achieve sustainable growth targets.

“We are committed to the implementation of sound policies towards financial deepening and overall economic development of this country as captured in our national Vision 2030 development blueprint. The banking industry is and will remain a major contributor towards this end,” said Mr. Etemesi.

 

KBA has achieved a number of milestones, including ownership and operation of the Automated Clearing House.  In partnership with the Central Bank of Kenya (CBK), the Association has also established the Kenya Credit Information Sharing Initiative (KCISI). This unit enables banks to share credit information through Credit Reference Bureaus licensed by the central bank. Through this initiative, the association and regulator hope to increase efficiencies within the credit system, thereby mitigating default risk while lowering the cost of credit.

Other key milestones include the setting up of currency centers in various parts of the country and the recent modernization of Payment Systems through the implementation of a Cheque Truncation System. This system has significantly reduced the cost of clearing cheques as well as minimized the turn-around times for cheque clearing across the country, delivering a more efficient service to the public – particularly bank customers living and operating in peri-urban and rural parts of the country.