The Kenya Development Corporation (KDC) today convened a high-level Chief Executive Officers’ Breakfast Meeting that brought together leaders from Development Finance Institutions (DFIs), financial sector regulators, and policymakers to discuss the establishment of a dedicated regulatory framework for DFIs in Kenya.
The meeting focused on building consensus around policies that would strengthen the development finance sector and support the country’s long-term economic transformation goals.
The meeting was attended by key stakeholders and was graced by the Director General for Public Investments and Portfolio Management, Mr. Lawrence Kibet.
Discussions highlighted the critical role DFIs play in Kenya’s economy by providing long-term financing to sectors that often struggle to attract commercial funding. These sectors include industrialization, infrastructure, agriculture, housing, and enterprise development.
Participants noted that Kenya’s ambitions in industrial growth, export expansion, climate resilience, and regional competitiveness will require a stronger and more effective development finance ecosystem. Despite their importance, DFIs currently operate without a dedicated legal and regulatory framework.
Stakeholders observed that this situation has led to fragmented oversight, inconsistencies in governance, and challenges in attracting institutional investment.
The discussions centered on the development of a regulatory framework built on four key pillars. These include strengthening governance and accountability, enhancing financial soundness and prudential standards, improving access to domestic and international institutional capital, and ensuring better coordination and alignment of mandates across the sector.
Mr. Kibet emphasized the need for a predictable and coherent regulatory environment, saying such a framework would enhance the credibility, sustainability, and effectiveness of DFIs in supporting Kenya’s development agenda.
KDC also presented the policy rationale behind the proposed framework, drawing lessons from international and regional best practices. Representatives from the National Treasury and other policymakers contributed ideas on how the framework could align with existing financial sector laws while ensuring effective supervision.
There was agreement among participants on the need for a dedicated framework that would strengthen institutional resilience, improve transparency and accountability, and position Kenyan DFIs to mobilize more long-term development finance.
KDC Director General Ms. Norah Ratemo said the conversation was about more than regulation. She noted that the objective is to strengthen institutions and ensure the long-term sustainability of Kenya’s development finance ecosystem.
According to her, the goal is to build a credible, coordinated, and globally competitive development finance system capable of delivering lasting economic and social impact.
The meeting concluded with a shared understanding of the need for DFI regulation, stronger consensus on the proposed framework, and valuable stakeholder input to guide its refinement.
Participants also agreed to continue consultations and collaboration as the framework advances.
KDC remains committed to promoting sustainable economic growth through innovative financing solutions that support industrialization, enterprise development, climate resilience, and inclusive prosperity across the country.
