Impact of CBK Prudential Guidelines on MFI Operations in Kenya
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Date
2019
Authors
Chepkutwo, Donald
Jagongo, Ambrose
Okech, Timothy
Journal Title
Journal ISSN
Volume Title
Publisher
Research Publish Journals
Abstract
Microfinance institutions in Kenya are currently registered under eight different Acts of Parliament; The
Non Governmental Organizations (NGO) Co-ordination Act, the Building Societies Act, the Trustee Act, the
Societies Act, the Co-operative Societies Act, The Companies Act , the Banking Act and the Kenya Post Office
Savings Bank (KPOSB) Act. Some of these forms or registrations do not address issues regarding ownership,
governance, and accountability. They have also contributed to a large extent to the poor performance and eventual
demise of many MFIs because of a lack of appropriate regulatory oversight. This paper aims to identify whether
the absence of a regulatory framework has had any effect on the outreach and sustainability of microfinance in
Kenya. This paper concludes that that the major challenge hindering outreach and sustainability of micro finance
institutions in Kenya is lack of specific legislation and set of regulation to guide the operation of microfinance
subsector. Also, the paper creates a platform where further insight can be provided through empirical research.
Description
Research article
Keywords
MFI, MFI Regulations, Prudential guidelines, CBK, Guidelines, Microfinance
Citation
International Journal of Management and Commerce Innovations, Vol. 7, Issue 1, pp: (224-231)