Kenya Economic Update, December 2013, No. 9 : Reinvigorating Growth with a Dynamic Banking Sector

Kenyans are living two decades longer; the fertility and infant mortality rates have been cut in half; and school enrollment, at both the primary and secondary level, has more than doubled. On the economic front, gross domestic product (GDP) per capita increased eightfold; the largest share of GDP is the services sector, not agriculture; and the financial sector is now the third largest in Sub-Saharan Africa (after South Africa and Nigeria). Kenya strengthened its external position substantially in recent years, accumulating international reserves to meet program targets under the successfully completed international monetary fund (IMF) program. Reforms have improved the resilience of the banking sector to domestic and international shocks. With the advent of mobile information and communications technology (ICT) developments, the ceiling for innovation targeting specific segments of the market and outreach has been raised almost indefinitely. Kenyan banks are ahead of their counterparts in Sub-Saharan Africa in terms of the share of lending to small and medium-size enterprises (SMEs) in their portfolios. A mature banking sector and more generally, a well-developed financial sector that supports a vibrant private sector will be an important advantage to achieving the vision 2030 goals.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013-12
Subjects:	ACCOUNTING, AGRICULTURAL OUTPUT, ASSET QUALITY, AUCTION, BALANCE OF PAYMENTS, BALANCE SHEET, BALANCE SHEETS, BANK ASSETS, BANK CREDIT, BANK FINANCING, BANK LENDING, BANK PORTFOLIOS, BANK RATE, BANKING CORPORATION, BANKING SECTOR, BANKING SYSTEM, BASIS POINTS, BENEFICIARIES, BENEFICIARY, BOND YIELDS, CAPITAL ACCOUNT, CAPITAL FLOWS, CAPITAL GOODS, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITALIZATION, CASH FLOW, CENTRAL BANK, CLIMATIC CONDITIONS, COLLATERAL, COLLATERAL REGISTRIES, COLLATERAL REGISTRY, COMMERCIAL BANK, COMMERCIAL BANKS, COMMODITY PRICES, CONSUMER DURABLES, CONSUMER GOODS, COOPERATIVE BANK, CREDIT COOPERATIVE, CREDIT COOPERATIVES, CREDIT GROWTH, CREDIT INFORMATION, CREDIT INFORMATION SYSTEMS, CREDIT SOURCE, CREDITOR, CREDITOR RIGHTS, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT LEVELS, DEBT MANAGEMENT, DEBT MANAGEMENT POLICY, DEMAND FOR CREDIT, DEPOSIT, DEPOSITS, DEVELOPMENT FINANCE, DISBURSEMENT, DIVIDENDS, DOMESTIC BOND, DOMESTIC BORROWING, DOMESTIC DEBT, DOMESTIC INTEREST RATES, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ELECTRICITY GENERATION, EMERGING MARKETS, ENVIRONMENTS, EQUIPMENT, EQUITIES, EQUITY MARKETS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORTS, EXTERNAL DEBT, EXTERNAL INDEBTEDNESS, FEDERAL RESERVE, FINANCIAL CRISIS, FINANCIAL INFRASTRUCTURE, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL SERVICE PROVIDERS, FINANCING OF INVESTMENT, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL DISCIPLINE, FISCAL POLICIES, FISCAL POLICY, FLOATING EXCHANGE RATE, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN FINANCING, FOREIGN INTEREST, FOREIGN INVESTORS, FREE ASSET, FREE ASSETS, GDP, GDP PER CAPITA, GLOBAL ECONOMY, GLOBAL INTEREST, GOVERNMENT BORROWING, GOVERNMENT BUDGET, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT REVENUE, GOVERNMENT SECURITIES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HIGH UNEMPLOYMENT, HOLDINGS, HUMAN RESOURCE, INCOME TAX, INFLATION, INFLATION RATE, INFLATIONARY PRESSURE, INFLATIONARY PRESSURES, INFORMATION ASYMMETRIES, INFORMATION SYSTEM, INFRASTRUCTURE DEVELOPMENT, INSURANCE, INTEREST PAYMENTS, INTEREST RATE, INTEREST RATE PAYMENTS, INTEREST RATE SPREAD, INTEREST RATE SPREADS, INTEREST RATES, INTERMEDIATE GOODS, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL MARKET, INVESTMENT BANK, INVESTMENT CLIMATE, INVESTMENT CORPORATION, INVESTMENT DECISIONS, INVESTMENT FUND, INVESTMENT SPENDING, ISSUANCE, LENDERS, LEVY, LIQUIDITY, LOAN, LOAN RECOVERY, LOCAL BUSINESSES, MACROECONOMIC CONDITIONS, MACROECONOMIC ENVIRONMENT, MACROECONOMIC MANAGEMENT, MACROECONOMIC VOLATILITY, MARKET CAPITALIZATION, MARKET CONDITIONS, MARKET ECONOMY, MARKET INDEX, MARKET STRUCTURE, MATURITY, MICROFINANCE, MICROFINANCE INSTITUTIONS, MONETARY FUND, MONETARY POLICY, MONEY SUPPLY, MORTGAGES, NATIONAL SECURITY, NATIONAL TREASURY, NON-PERFORMING LOANS, NONPERFORMING LOANS, OIL, OIL PRICE, OIL PRICES, OWNERSHIP STRUCTURE, PAYMENT SERVICE, PENSIONS, PERSONAL SAVINGS, POLICY ENVIRONMENT, POLICY MAKERS, POLITICAL RISK, POLITICAL UNCERTAINTIES, PORTFOLIO, PORTFOLIO CAPITAL, PORTFOLIO FLOWS, PORTFOLIOS, PRICE RISKS, PRIVATE CAPITAL, PRIVATE CREDIT, PRIVATE SECTOR CREDIT, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC SPENDING, QUALITY OF ASSETS, REAL EXCHANGE RATE, RECURRENT EXPENDITURE, REGISTRY SYSTEM, REMITTANCES, REPAYMENT, REPAYMENTS, REPO, RESERVE, RESERVES, RETURNS, RETURNS ON EQUITIES, RISK AVERSION, RISK PREMIUMS, RISK-FREE RETURN, SAVINGS DEPOSITS, SECURITIES MARKETS, SHORT MATURITIES, SHORT-TERM CAPITAL, STABLE INTEREST RATE, STOCK EXCHANGE, STOCK MARKET, STREAMS, TAX REVENUES, TERMS OF TRADE, TERRORISM, TRADE BALANCE, TRADING, TRANSACTION, TRANSPARENCY, TREASURY, TREASURY BILL, TREASURY BILL RATE, TREASURY BILL RATES, TREASURY-BILL RATES, TURNOVER, WAGES, WORKING CAPITAL, YIELD CURVE,
Online Access:	http://documents.worldbank.org/curated/en/2013/12/18639058/reinvigorating-growth-dynamic-banking-sector https://hdl.handle.net/10986/17002
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