NAIROBI– The Kenyan government is keen on speedy enactment of key legislation which it hopes will bring about vibrancy to the financial sector’s development.

The National Treasury has identified the Kenya Credit Guarantee Scheme Bill, the Financial Services Authority (FSA) Bill, and the Securities, Investments and Derivatives Bill as crucial legislation which are expected to help deepen the sector.

The financial sector is at the centre of the government’s plans to deliver promptly and efficiently its Big Four Agenda to focus on food security, affordable housing, manufacturing and healthcare.

Development of the sector is expected to boost revenue, enhance financial inclusion, bring stability and mobilize savings and the National Treasury is looking to increase credit access to small and medium enterprises (SMEs) through enactment of the Kenya Credit Guarantee Scheme Bill which will allow a public private partnership (PPP) structure for credit guarantee schemes.

Furthermore, consolidation of the Capital Markets Authority, the Insurance Regulatory Authority, the Sacco Societies Regulatory Authority and Retirements Benefit Authority into a single Financial Services Authority is expected to eliminate regulatory gaps and increase consumer protection while ensuring non-bank financial service providers are licensed by a single body to minimize red tapes.

Similarly, the Government will expedite the enactment of the Securities, Investments and Derivatives Bill; expand the new derivatives market; strengthen capital markets infrastructure and institutions, diversify capital markets products and services.

In future, counties are also expected to be able to raise funds though the capital markets.

Amalgamation of the Central Securities Depositories operated by central bank and the Central Depository and Settlement Corporation under a single Central Securities Depository is also expected to be finalized.

The State is further seeking to catalyze mobilization of long-term domestic funds through insurance and pension funds. This will be done through new legal and product development and training of institutional investors in order to expand long-term assets.