The Kenyan government is advancing a proposal for a dedicated legal framework to oversee development finance institutions. The initiative was discussed at a meeting on June 3, 2026, involving officials from the Kenya Development Corporation, regulators, and policymakers. Stakeholders seek to improve governance, attract investment, and align the sector with national economic goals.
The proposal emerged from a high-level meeting hosted by the Kenya Development Corporation on Wednesday, June 3. Participants noted that DFIs currently lack a unified regulatory structure and operate under individual government acts or fragmented oversight. They called for the Development Finance Institutions Bill to introduce licensing, standardized risk management, and stronger accountability measures.
KDC Board Chair Sakwa Bunyasi stated that the framework draws on regional and international practices to support Kenya's industrialisation and economic transformation agenda. KDC Director General Norah Ratemo added that the goal is to create a credible and globally competitive system capable of delivering sustained economic and social impact.
The four focus areas include governance strengthening, financial soundness, access to long-term capital, and sector coordination. DFIs finance high-risk projects in manufacturing and enterprise development that commercial banks often avoid. If adopted, the changes would represent a significant shift in how these institutions are supervised.