NAIROBI, Plans to merge regulators in the financial services sector into one agency are at an advanced stage with the government to back the proposal with the relevant legislation, says National Treasury Cabinet Secretary (Minister) Henry Rotich.
The draft Financial Services Authority Bill will provide a platform to merge existing non-banking regulators to address the existing regulatory gaps, he said at a function here Thursday to mark the 10th anniversary of the Insurance Regulatory Authority.
Three months ago, the Cabinet approved the draft Financial Services Authority Bill 2016 which seeks to merge the functions of four non-bank financial regulatory bodies — the Capital Markets Authority, the Insurance Regulatory Authority (IRA), the Retirement Benefits Authority and the SACCOS Societies Regulatory Authority.
The Bill seeks to reform the financial sector by consolidating supervision of financial services to eliminate regulatory gaps.
Among those affected is IRA which is celebrating its 10th anniversary at a time when the industry has seen insurance premiums growing fourfold over the last decade to the current 195 billion shillings (about 1.88 billion US dollars).
Experts say the growing micro-insurance segment and training of county insurance staff will be key in driving insurance uptake going forward. In order to further encourage uptake of insurance, industry players have been urged to tailor their products to especially meet the requirements of the lower end of the market.
Source: NAM NEWS NETWORK