The amendment anchored agency business in the law and, the Central Bank is in the process of designing guidelines to facilitate the contracting of agents to provide financial services on behalf of deposit taking microfinance institutions. The move will undoubtedly allow microfinance institutions to leverage on additional cost effective distribution channels to offer financial services.
This initiative is informed by the need to leapfrog access to financial services to Kenya’s bankable who remain totally outside the orbit of these services at affordable cost. Ladies and Gentlemen: Another remarkable initiative in the pipeline is in the area of credit information sharing (CIS) for Microfinance Institutions. As you are aware, the CIS mechanism is already in place for commercial banks.