CBK launches MFI deposit guidelines

Dec 28, 2011

The Central Bank of Kenya (CBK) is introducing new guidelines in a bid to reduce the risks involved when microfinance institutions (MFIs) accept deposits.

From January 2nd 2012, it will regulate the agents that take deposits on behalf of these organisations, the Daily Nation reports.

It is hoped this will enable MFIs to promote their financial services and encourage uptake among the country's unbanked population.

"The new guidelines are meant to maintain a stable and efficient deposit taking microfinance system in the country by reducing the risks and costs involved in the system," CBK said in a statement.

It will now be able to inspect agents' books, computer systems and premises to ensure they are carrying out their operations in a lawful manner.

Deposit taking MFIs will also have to submit data to the CBK detailing customer complaints, the behaviour of agents and any cases of fraud, theft or robbery.

According to the organisation, around 32 percent of bankable Kenyans had no access to finance in 2009 - an issue this latest development could help to tackle.ADNFCR-2976-ID-801250473-ADNFCR