I will therefore first explore the genesis of the global financial crisis, then review its potential impact on Kenya from a macro perspective and conclude by analysing its impact on the Kenyan banking system. Ladies and Gentlemen: 2008 was indeed a historic year.
Aside from the domestic/political problems experienced during the first quarter of the year, the financial disruptions triggered by the US subprime mortgage market precipitated a global financial crisis, which has simultaneously affected all the major world economies including the United States of America, the European Union, Japan and China. By end of 2008 all these economies were in a recession.