Financial sector regulatory authorities could soon be operating together should proposals by Finance Minister Njeru Githae be adopted. The minister proposes to have Insurance, capital markets and retirement benefits regulators work together to “strengthen the supervisory capacity, safeguard stability and enhance efficiency of the regulators”
“The Government will shortly commence a process to establish a consolidated financial sector regulatory framework bringing together
the Capital Markets Authority, Insurance Regulatory Authority and Retirement Benefits Authority.” Githae said while reading the budget statement 2012/2013 in parliament.
Githae also added that the Banking Supervision Department will be re-established as an entity under a reviewed Central Bank of Kenya Act with a clear mechanism allowing for coordinated and effective financial sector supervision.
The minister also proposed convergence of financial services where banking, insurance and stock brokerage are offered under one roof proposed to amend the Banking Act to expand the scope of banking business to include incidental financial services that can be offered by banks subject to review and approval by the Central Bank to ensure adequate risk mitigation.