Financial Sector Overview

street view of Nairobi

Income Group: Low Income

Kenya’s financial sector is well developed relative to the regional average and larger in size than that of other countries in the low-income group. While the sector does not appear to be very open, it is relatively more diversified than that of other low-income countries, albeit below the regional average. Based on a cross-country comparison, bank overhead costs, net interest margins and bank cost-income ratios show that the efficiency of the banking system is higher than income-group and regional averages, as is its ability to channel funds to the private sector, as indicated by the relatively high ratio of private sector credit to GDP.

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