This article deals with the Banking Review In Kenya.Banks are financial institutions that act as intermediary entity to store, secure and circulate finances in a given market segment. The embrace of free market economy has seen the growth in number and service improvement of Banking in the Kenyan market. There are various types of banks that are widely categorized as central banks, commercial banks, and savings banks. Business Training in Kenya has more articles
The central bank acts as the central financial control unit that works on behalf of the government in implementing the monetary policies of money supply in the economy. The commercial bank focuses more on deposits and credits which are either invested into the capital market or released to the economy as loans. This tends to create a balance in the gap created by capital surplus.
The savings banks offer an opportunity for the economy to borrow money from the financial cooperatives.
Banking Laws in Kenya in Banking Review In Kenya
The banking sector in Kenya is governed and controlled by laws. There are various banking laws in Kenya that govern and regulate the way banks are formed, operate and are managed in the country. Some of these laws include but not limited to the appropriation act, banking act, bankruptcy act, Barclays of Kenya limited act, capital markets, central bank of Kenya act, central depositories act, cheques act, general loans and stock act among other laws. The laws are divided and partitioned to cover the different aspects in the banking industry. It also enables the government to keep an eye in the way the banks operate and managed.
The banking act covers a wide area in the banking business such as licensing, reserves and dividends, accounts and audits, information reporting requirements, inspection and control of institution, deposit protection fund, deposit protection fund, among others.
Banks in Kenya are often managed to ensure that the individuals, corporate bodies, partnerships and trustees. This helps in bringing about the efficient harmony and advancement in the financial aspect of economic growth.
Networking in Banking Review In Kenya
The rate at which banks is growing shows the extent of the expansion in branches of local banks. There are however foreign banks that have branches in Kenya such as Barclays bank. Networking is the major avenue which the banking sector in Kenya has embraced to improve on service delivery to customers all over the country.
Technological advancement has penetrated various sectors of the economy least of which banking sector has not been left out. The innovation of EFT, ATM and SMS banking has made it possible for customers to access money efficiently and fast remotely. Money transfer from a customers account into the mobile phone and vice versa known as mobile banking or SMS banking is a merging of telecommunication industry and the banking industry with the aim of enhancing service delivery. The expansion in market share through embrace of technological changes has resulted into increased returns and turn over for the sector.
Classification of Banks in Banking Review In Kenya
Banks in Kenya are widely classified into banking institution, non banking institution, microfinance institution and foreign exchange bureau. These offer increased employment to the Kenyan population therefore improving on the lifestyle and financial independence. This in return translates to economic development of the nation. The financial and government policies have encouraged the mushrooming of local banks owned and operated by indigenous people. Local investors understand the needs of the local business empire therefore making it easy to formulate financial policies that match the local demand. A good example is equity bank that started as a small financial institution with the aim of improving the livelihood of Kenyans. It has seen the growth of more branches in most parts of the country. Through partnership with other institutions such as schools and universities, banks have sponsored less fortunate students to advance in education. Scholarships and sponsorship programs have been introduced by banking sector in Kenya as a way of enhancing social responsibility- giving back to the society.
Advocacy for East African Community (EAC) aims at creating one east African market where trade and other activities will be harmonized to benefit the border countries. The banking sector has been on the forefront in extending its wings to the neighbouring counties. Equity bank and Kenya commercial bank (KCB) have branches in Uganda. Equity is eyeing Rwanda. This means customers can access the same services when in foreign countries. It makes movement easy since there is reduced cases of theft and loss of money. Financial security is therefore guaranteed.
Over the past recent years banks have experienced better and steady growth in assets, profits, deposits and service delivery. People are enlightened on the benefits of banking. The availability of many banks in Kenya encourages small scale businesspersons to apply for loans and expand their businesses. Banks encourage creativity through sponsoring ideas that can be used for generating income. Reduced interest rate is the key concern that customers look for when applying for loans and financial assistance from banks and financial institutions. This has improved within the last few years. The trend has changed compared to over five years back when people used to look for banks. Now it is vice versa, banks are looking for people.
Financial institutions have been formed through self help groups of people from similar backgrounds. These groups are formed with idea of a merry go round. The groups can access loans from banks and develop their projects which in return improve their lives. Being part of such groups increases the chances of qualifying for loans from banks. Finances or money is the engine that drives every society. It helps ideas to develop into projects and projects into goods and services that benefit the community in which the project is set.
The government encourages banking sector in Kenya to increase the market share to accommodate more Kenyans in the job market. The tax returns also increases which is revenue to the government. Technology and innovation has changed the face of banking since online marketing has created awareness about the benefits of accessing banking services. Banks advertise their services online through social sites and company websites to encourage more customers to sign up with them. Banking in Kenya continues to grow in the bid to improve service delivery, reduce operation cost and encourage economic development.
Business Training in Kenya has more articles
Incoming search terms:
- types of banks in kenya (49)
- banking act kenya (30)
- banking act in kenya (18)
- classification of commercial banks in kenya (18)
- banking act of kenya (16)
- kenya banking act (15)
- banking act (12)
- banking law in kenya (12)