Kesses Member of Parliament, Julius Rutto, has introduced a new bill named ‘The Institute of Bankers Bill 2024’, aiming to streamline and enhance the professional standards within Kenya’s banking industry.
The proposed legislation, presented earlier this month, advocates for the creation of the Institute of Bankers, a body that would oversee key regulatory functions in the banking sector, including training, registration, and licensing of banks and bankers.
The bill proposes the formation of the Institute of Bankers, tasked with regulating the banking profession across the country.
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According to Rutto, this body will address the rising number of professionals in the sector and ensure uniform standards of practice.
“The institute will be governed by a council composed of a Chairperson and seven other members, who will have the necessary powers to perform their duties,” the bill stated.
In his proposal, Rutto highlighted Kenya’s lack of a centralised body dedicated to regulating and certifying professional bankers.
“Currently, Kenya lacks a formal, centralised professional body dedicated specifically to the regulation, training, and certification of bankers,” the bill noted.
This gap, Rutto argued, has hindered the professional development of the banking industry in the country.
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If the bill is approved, an estimated 10,500 professional bankers will be required to register within the first three years.
Registration will cost Sh25,000, with an additional annual subscription fee of Sh10,000 for maintaining membership.
The bill outlines that the registration will not be merely procedural but will require bankers to meet specific educational criteria, which include passing accredited banking exams.
This process is designed to enhance the professional competence of Kenya’s banking workforce.
Rutto stressed that Kenya should emulate the efforts of other African nations that have successfully implemented similar frameworks.
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He pointed to Uganda, Rwanda, and South Africa as countries that have established banking institutes with a significant impact on their sectors.
“Each country has adopted its banking professional institutions to fit its unique context. In Uganda and Rwanda, the institutes are designed to address local banking needs and regulatory requirements while aligning with international best practices,” the bill noted.
Rutto also highlighted South Africa’s Chartered Banker Institute as a model that reflects the country’s specific needs and challenges in the banking sector.
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