  Introduction of agent banking mechanism in May 2010 where banks were allowed to engage third parties to provide certain banking services. The aim is increased outreach of banks to the vast under-banked and unbanked Kenyan populace by introducing “banking beyond branches”. It also enables banks to leverage on additional cost effective distribution channels to offer financial services.
This process has been under way for years, though constrained by the prevailing statutory limits. Legislation would allow the market process to evolve further and would, in addition, refine the supervisory and regulatory framework for the diversified financial services firms that would emerge as a result of the legislation.