Kenyan ministry of finance announces changes to banking industry

01/09/2011 - Kenya property & investment news Posted by Bob Brunskill
Kenyan ministry of finance announces changes to banking industry

The Kenyan ministry of finance has confirmed that it has ceded its powers to license commercial banks to the Central Bank of Kenya.Minister Uhuru Kenyatta made the changes through a legal notice that amended the Banking Act, meaning that the Central Bank of Kenya is able to issue licences.In addition to this, Mr Kenyatta shifted some oversight powers held by his office over the insurance industry to the Insurance Regulatory Authority."We will be reviewing legal, regulatory and supervisory frameworks for the financial sector to improve them further and ensure conformity to the new Constitution," he explained during a presentation of this year's budget statement.Meanwhile, Kenyan lender NICB Bank recently confirmed a first-half profit jump of 34 per cent as earnings from loans increased.According to the lender, net income rose to 1.1 billion shillings ($11.8 million) in the six months through June, up from 818 million shillings a year earlier.