The Kenya School of Monetary Studies (KSMS) was established in 1997 to address the training needs of the banking sector in Kenya and improve the performance and quality of service and standards in the financial sector.
E-banking, at the time, was relatively new in Kenya, and was identified as a strategy of enhancing banking services to poor communities in Kenya and therefore of fighting poverty. The explosion of mobile banking through mobile money transfers e.g. through Safaricom’s M-Mpesa, Zain meant that there was a dire need to develop the country’s capacity to deal with these new methods of banking. However, the KSMS did not have the human capacity to introduce a framework for a sound e-banking training and curriculum in their school.
The KSMS therefore requested support to address the need for capacity building in the area of e-banking.
The goal of the project was the delivery of a more effective, citizen centred e-banking service through improved e-banking skills within the Kenyan banking sector.
The project resulted in KSMS being able to offer relevant, high quality e-banking training to the banking sector which in turn will lead to improved e-banking services to the citizens of Kenya. The institutional linkages established will enable KSMS to maintain quality, expertise and knowledge in the field of e-banking on an on-going basis. Ultimately this project will assist reaching the under banked communities in Kenya as part of implementing Vision 2030.
Ebanking (mobile banking) is a field in which Kenya is now a genuine world leader. This has been recognised by the Central Bank who are now working with the Kenya School of Monetary Studies (KSMS) to develop the field as much as possible. This is having a dramatic effect on the economic opportunities for the rural poor who have traditionally had little or no access to banking services. This is illustrated by that fact that while less than 40% of adult Kenyans have bank accounts, over 75% have adopted mobile banking, thereby gaining access to savings options (and earning interest), secure payments and short term credit facilities.
The project addressed the problem of lack of capacity within the KSMS to introduce a framework for sound e-banking training and curricula. It also addressed the capacity gap regarding strategic and key issues on wider e-banking policies and practice, as well as collaboration with appropriate international financial management institutions abroad.
Finally, the project contributed to strengthening monitoring and regulatory capacity of the Central Bank of Kenya on e-banking.
The project has delivered the following achievements: