The government is planning to merge three major financial regulatory bodies in a move aimed at enhancing service delivery, cutting bureaucracy and avoiding duplication of roles.
Bloomberg quoted Prime Cabinet Secretary Musalia Mudavadi telling various stakeholders that the 3 regulatory bodies poised for merging include; the Capital Markets Authority (CMA), the Insurance Regulatory Authority (IRA) and the Saccos Societies Regulatory Authority (SASRA).
Sources privy to the information revealed the move was also in line with the demands that the International Monetary Fund (IMF) has made as Kenya seeks to acquire a Ksh580 billion ($4.4 billion) loan.
The facility in question is supposed to help Kenya deal with its debt vulnerabilities as Kenya charts a path towards economic recovery.
According to Mudavadi, consolidating the functions of the three authorities would enhance their collective impact and streamline regulatory processes.
It was further reported that the move would also be implemented in other sectors including involving bodies such as; the Kenya Bureau of Standards (KEBS), the National Environment Management Authority (NEMA) and the Department of Weights and Measures.
“The regulatory framework in any nation is vital for economic growth, social harmony, and environmental sustainability. Regulatory Authorities and Agencies are key in ensuring adherence, and driving innovation,” Bloomberg quoted Mudavadi telling industry stakeholders.
“Excited to engage in discussions on boosting our regulatory capabilities to combat corruption, reduce waste, and enhance service delivery,” he added.
The plans first came into light way back in 2017 during former President Uhuru Kenyatta's tenure when the Cabinet approved the draft Financial Service Authority (FSA) Bill.
The bill proposed that all non-banking institutions be registered under the FSA through a single licence. The CBK was the only regulator that would not fall under the new entity.
However, the bill proposed that the CBK would then work closely with the Financial Service Authority to streamline oversight in the financial sector.
The move was suspended barely one and a half years later, even so, a clear reason was not issued as to why the government put the decision on hold.
