The Kenyan Cabinet has approved the draft Financial Services Authority (FSA) Bill 2016 which will merge the functions of the Capital Markets Authority (CMA); the Insurance Regulatory Authority (IRA); the Retirement Benefits Authority (RBA); and the Saccos Societies Regulatory Authority (SASRA).
This reform in the financial sector aims to provide a consolidated supervision for financial services to eliminate regulatory gaps and increase protection of financial services consumers.
Under this Bill, all non-bank financial service providers will be licensed by the Authority through a single license.
The FSA will have a full range of administrative and enforcement powers to meet its statutory mandate.
It will retain the right to withdraw any delegation of powers for self-regulation, if it is not satisfied with the organization given such powers.
Overall, the initiative merging the functions of the four financial
regulatory bodies will make doing business in Kenya easier.