By Prof Njuguna Ndung’u
Over the 5 years of the Financial Sector Deeping (FSD) Kenya’s operations, Kenya’s financial sector has witnessed a major transition, from adequate reforms, allowing space for innovative solutions, to dynamism and growth. FSD Kenya contributed a fair share of this transition and understanding.
Financial inclusion lies at the core of the Central Bank of Kenya’s reform agenda to support Kenya’s development blueprint, vision 2030.
This is because financial inclusion has the potential to lift people from poverty through savings and affordable credit.
More importantly, financial inclusion brings Kenyans to the market and so deepens the market and creates economies of scale. Cost of financial services will decline.
This is what FSD has supported as well. A developed and deepened financial sector finances development and allows an effective transmission of monetary policy decisions.
CBK and FSD Kenya enjoyed cordial and fruitful relations during the first phase of FSD Kenya’s operations.
The results of the FinAcces Surveys in Kenya have become the goal standard for measuring the level of financial inclusion and financial access in the country. They have also informed the design of appropriate policies to curtail financial exclusion.