Kenya laws 'need to account for mobile money operators'

Dec 07, 2010

Financial laws in Kenya need to be changed so as to make room for mobile phone money transfer operators that want to switch to being banking agents.

This is according to Njuguna Ndung'u, Governor of the Central Bank of Kenya, who said existing legislation does not offer enough clarity on this matter, Business Daily reports.

He has called for reform of the current regulatory framework, stating any changes will help to create an equal market in the country by taking into account the risks different banking agents would pose to the market.

"We are worried about lack of oversight of the activities of agents dealing in mobile money transfer services, instead there are only guidelines allowing banks to appoint agents for deposit taking," he was quoted as saying, adding regulation of the sector is "critical" if long-term investment is to take place.

The central bank recently revealed figures showing the expansion of financial instructions in terms of new branches has slowed in the nation, partially due to the growth of mobile banking.