Overall, I am pleased to note that the outlook for Kenya’s financial sector remains stable in view of the prevailing levels of capitalization, sound risk management systems, strong asset quality and profitability that the banking sector is currently enjoying.
Specifically, the banking sector has enjoyed relatively strong performance during the last five years, supported by improved macroeconomic stability and legislative reforms which resulted in the implementation of revised prudential guidelines and risk management frameworks. These reforms have enabled the Central Bank to identify, monitor and control risks in a timely manner, while also strengthening corporate governance in banking institutions.