Wednesday, November 07, 2007

Financial market developments in Kenya

A couple of interesting initiatives coming out of the woodwork.
  • A single financial regulator would be great because it would enhance consistency in regulation across the financial sectorThe current situation where the banking industry is ahead of the game means systemic
    risk is not adequately covered. It should also be easier to close loopholes such as those seen where by pyramid schemes were registering themselves as saccos. It does however require brainwork in bringing about a cohesive framework of regulation. The original FSA was started by the UK in 1998 and combined 8 sub-regulators. Subsequently countries such as Japan, Sweden, NZ, SA etc have all copied the concept.
  • REITS (real estate investment trusts) will also debut at the NSE. I covered these in previous post. Suffice to say that i think that used in the right-way, they could help finance housing projects across urban Kenya
  • Finally, bank of the decade so far is tentatively feeling its way into Sudan. Surprised it didn't try Ug first. Its model is very suited to Ug where they also have an enterprising culture.


Ssembonge said...

I think REITs will be the best thing that can happen to Kenya. With the failure of the National Housing Corp, we need more planned housing estates. A good example is ufunguo, high rise and the one in embakasi. What is happening in Umoja, zimmerman and now kileleshwa needs to be stopped.

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