CENTRAL BANK OF KENYA Prof Kinandu Muragu Executive Director Kenya School of Monetary Studies...

CENTRAL BANK OF KENYACENTRAL BANK OF KENYA

Prof Kinandu Muragu Executive Director

Kenya School of Monetary Studies

Godfrey KyamaCommonwealth eBanking AdvisorKenya School of Monetary Studies

• Background• Government Role • Regulation• National Payment System• Customer Protection Framework• Conclusion

• M-Pesa – the word• Evolution, Revolution and Innovation• Mobile Money and M-Pesa– M-Kesho

• Government attitude • Kenya Communication Act• Private sector role• Impact:

0.00 2.00 4.00 6.00 8.00

10.00 12.00 14.00 16.00 18.00 20.00

Total customers (million)

Total customers (million)

• Very innovative• Financial inclusion• Impact:

outlets

Bank of Africa 1

Barclays Bank of Kenya 64

Commercial Bank of Africa 1

Chase 15

Consolidated 9

Co-operative 83

Eco Bank 12

Equity 22

Family 53

Gulf 10

Housing Finance 7

Imperial 7

KCB 157

KFWT 10

NBK 10

TOTAL 461

• Safe and Efficient– Amended CBK Act– National Payments System Bill– Agent Banking– Proceeds of Crime and Anti-Money Laundering Act

• Impact: Financial Inclusion!

Source: Central Bank of Kenya 2012

Volume of mobile money transactions increasing steadily

Source: Central Bank of Kenya 2012

Source: Central Bank of Kenya 2012

• Consumer and Deposit Protection• Competition and interoperability• Consumer protection and innovation• Consumer protection regulation?

o Rules of the game?

• Consumer rights?• Consumer protection law

• Rapid and dramatic mobile money • Kenya is world leader– Nesting ground for mobile money

• Technology and the poor– An agent of financial inclusion

• Policy makers + Regulators– Innovation and market access