CENTRAL BANK OF KENYACENTRAL BANK OF KENYA

Prof Kinandu Muragu Executive Director

Kenya School of Monetary Studies

Godfrey KyamaCommonwealth eBanking AdvisorKenya School of Monetary Studies

• Background• Government Role • Regulation• National Payment System• Customer Protection Framework• Conclusion

• M-Pesa – the word• Evolution, Revolution and Innovation• Mobile Money and M-Pesa– M-Kesho

• Government attitude • Kenya Communication Act• Private sector role• Impact:

0.00 2.00 4.00 6.00 8.00

10.00 12.00 14.00 16.00 18.00 20.00

Total customers (million)

Total customers (million)

• Very innovative• Financial inclusion• Impact:

outlets

Bank of Africa 1

Barclays Bank of Kenya 64

Commercial Bank of Africa 1

Chase 15

Consolidated 9

Co-operative 83

Eco Bank 12

Equity 22

Family 53

Gulf 10

Housing Finance 7

Imperial 7

KCB 157

KFWT 10

NBK 10

TOTAL 461

• Safe and Efficient– Amended CBK Act– National Payments System Bill– Agent Banking– Proceeds of Crime and Anti-Money Laundering Act

• Impact: Financial Inclusion!

Source: Central Bank of Kenya 2012

Volume of mobile money transactions increasing steadily

Source: Central Bank of Kenya 2012

Source: Central Bank of Kenya 2012

• Consumer and Deposit Protection• Competition and interoperability• Consumer protection and innovation• Consumer protection regulation?

o Rules of the game?

• Consumer rights?• Consumer protection law

• Rapid and dramatic mobile money • Kenya is world leader– Nesting ground for mobile money

• Technology and the poor– An agent of financial inclusion

• Policy makers + Regulators– Innovation and market access