Eldas Member of Parliament Adan Keynan has urged the national government to consider the expansion of financial services in the northern parts of the country, through the construction of more banks, in a bid to uplift the pastoralist communities.
Speaking during a parliamentary session on Wednesday, July 30, the lawmaker warned that the lack of enough financial institutions has blocked the economic and social progress of the region, which mainly depends on pastoralism, trade, and informal enterprises.
Additionally, the MP called for the government to kickstart financial literacy programmes in the region, especially targeting youths, women, and persons with disabilities to elevate business uptake in the region.
Furthermore, the MP stressed the need for the existing financial institutions in the county to pull up their socks and ensure that they provide inclusive and affordable credit to vulnerable groups in the region.
“Financial institutions serve as engines of economic development. Expanding banking infrastructure, both physical and digital, is essential to transition households from subsistence to stability,” the MP said.
According to Keynan, the establishment of financial institutions should also be accompanied by infrastructural development and reinforcement of the region's security capacity, which remains one of the key factors affecting the region.
The MP has, in turn, demanded a detailed report from the National Assembly's Departmental Committee on Finance and National Planning, which will highlight the strategies the government has put in place to increase the physical and digital presence of financial institutions in the region.
"What are the plans that the Government is putting in place to ensure that financial institutions model their services to a nomadic lifestyle and address insecurity and infrastructural challenges being faced by the pastoralist communities of Northern Kenya?" the MP said.
"What are the plans that the government is putting in place to ensure that financial institutions model their services to a nomadic lifestyle, address insecurity and infrastructural challenges being faced by the pastoralist communities of Northern Kenya?" the MP said.
The request comes days after the CBK Governor revealed that the CBK does not have direct constitutional powers to close down rogue county bank accounts.
This came after a report from the Controller of Budget revealed that governors had opened 2,421 unlawful bank accounts as of September 30, last year.
Governor Kamau, who appeared before the Senate Standing Committee on Devolution and Intergovernmental Relations on Thursday, July 24, said that there is an urgent need for strengthening the current legal frameworks to ensure compliance.
“Dr. Kamau informed Senators that the Central Bank of Kenya lacks a direct constitutional mandate to compel county governments to close unauthorised accounts and recommended strengthening the existing legal frameworks on the matter,” a statement from Parliament asserted.
