Banks will now be liable for the actions of their appointed agents in regard to service rendered to clients on their behalf. In a bid to protect bank clients, Finance Minister Njeru Githae said in the budget statement 2012/2013 that the government is committed to ensuring that the clients' interest is protected.

"We amended the law to allow banks to sub-contract agents to provide basic banking services on their behalf. However, we did not require banks to be liable for the acts and omissions of their agents hence exposing their customers who use these services. In order to correct this anomaly, I propose to amend the Banking Act to expressly make banks liable for the acts and omissions of their agents in relation to banking business." The statement reads.

Many commercial banks have rolled out active agency banking outlets to enable them take basic banking services to the estates and small towns. This has seen the 'big banks' in the country grow their deposits through increase in account opening fueled by the agents. In the past errors and omissions committed were not charged on the banks exposing customers to risks of losing their money.