These microfinance providers can be clustered into three broad categories, notably, formal, semiformal and informal institutions, with the level of formality defined by the degree of formal regulation and supervision. The formal category includes banks and financial institutions licensed under the Banking Act, building societies and the Kenya Post Office Savings Bank.
This has also been supported by strong visitor arrivals and increases in inward remittances. Inward remittances which has fallen significantly over the last 3 to 4 years is recovering very strongly. Against this macroeconomic background, the Reserve Bank continues to focus monetary policy on ensuring that the interest rate environment is appropriate and liquidity is adequate at all times to allow credit to grow.