Kenyan Listed Banking Sector Quarterly Earnings and Operating Metrics
Recent Developments in the Kenyan Banking Sector
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1. Regulation Continuation:
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Credit Repair Framework: In November 2022, the Central Bank of Kenya (CBK) announced the roll out of a Credit Repair
Framework by commercial banks, microfinance banks, and mortgage finance companies. The main objective of the Framework is
to improve the credit standing of mobile phones digital borrowers who had been adversely listed with Credit Reference Bureaus
(CRBS) for failing to service their mobile loans. The Framework will cover loans with a repayment period of 30 day or less, with the
institutions expected to provide a discount of at least 50.0% of the non-performing mobile phone digital loans outstanding as at
the end of October 2022. As such this is expected to increase access to credit and other financial services by borrowers operating
in personal and micro-enterprises sectors which were largely affected by the Covid-19 pandemic
Reintroduction of charges for mobile money and bank account transactions: In December 2022, the central Bank of
Kenya (CBK) announced the reintroduction of charges effective 1st January 2023 for transactions between mobile wallets and bank
accounts which were waived in March 2020, as an emergency response to facilitate use of mobile money and reduce handling of
hard cash during Covid-19 pandemic period. However, the new charges will be significantly lower than the charges that applied
before the pandemic aimed at supporting financial system, facilitate a transition towards sustainable growth of the mobile money
ecosystem while ensuring affordability of payment services for Kenyans
Cytonn
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