Nairobi: Wednesday, 12th June 2024: Players in the financial services sector have been encouraged to consider the needs of the population while designing products and services to reinforce the sector’s contribution to financial inclusion and economic growth.
Speaking during the launch of the ‘Chora Plan’ (Plan Your Money) financial literacy campaign, Central Bank of Kenya Governor Dr. Kamau Thugge said although the finance and insurance sector continues to be one of the key services sectors driving Kenya’s economic growth, much more can be done to expand the sector and further catalyze the country’s growth.
“It is imperative that the financial services we provide cater to the needs of customers. They should address day-to-day necessities, help cope with financial shocks, and enable investments in future goals,’’ said Governor Thugge, challenging financial institutions to reflect on whether their products and services truly meet the financial health needs of Kenyans, particularly those at the bottom of the pyramid.
The Governor also encouraged financial service providers to rationalize their costs, enhance customer service and experience, and improve transparency and disclosure of their terms and conditions, besides raising awareness among customers about emerging forms of fraud, including social engineering and identity theft.
“By equipping Kenyans with the necessary knowledge and skills to make informed financial decisions, we are not only empowering individuals and businesses but also laying a strong foundation for a more resilient and prosperous economy. The Central Bank will actively engage with all stakeholders to create a sustainable framework for coordinating financial literacy efforts on an ongoing basis,” the Governor added.
The Chora Plan (Plan Your Money) financial literacy campaign is an initiative organized by the Kenya Bankers Association in collaboration with the Central Bank of Kenya(CBK) to empower individuals and businesses with the knowledge and skills necessary to make informed financial decisions, ultimately leading to enhanced financial stability and economic growth.
The campaign’s theme this year is ‘Strengthening Financial Health Through Financial Literature’ and brings together a broad range of partners, including Central Bank of Kenya (CBK) VISA, Kenya Deposit Insurance Corporation (KDIC), Kenya Mortgage Refinance Company(KMRC), PesaLink and AfricaNenda, among other partners.
Speaking at the launch, KBA Chairman and NCBA Group Managing Director John Gachora said: “This program is a transformative step towards creating a financially literate society. By focusing on practical financial education in areas such as banking, insurance and pension services, we can help individuals and businesses make better financial decisions that benefit them and the broader economy.”
On his part, KBA Ag. CEO Raimond Molenje said: “We are excited to launch the Chora Plan program, together with our partners. Kenya’s financial literacy levels are very low as compared to even some of our neighbors in the East African region, which is quite a shame bearing in mind that we pride ourselves as the leading economy in the region. As the banking sector, we understand that we have a role to play to change this situation, well aware that financial literacy is the cornerstone for economic empowerment.”
Visa Country Manager Eva Ngigi, said: “Just like reading and writing is taught in schools, financial literacy is an important skill to have to grow the competency amongst the younger generation. Innovation is in Visa’s DNA. Through gamified methods, we are making financial education engaging and accessible to all. We aim to provide everyone with the tools to make informed financial decisions and this includes programs for school going children.”
Hellen Chepchumba Chepkwony, CEO, Kenya Deposit Insurance Corporation (KIDC) said, “The campaign will help us achieve our long-awaited mandate to empower individuals with the knowledge and skills to make informed financial decisions. KDIC’s role in financial literacy is complementing the CBK to ensure stability and ensure deposit education is imparted on borrowers and the public to maintain financial stability.”
PesaLink CEO, Gituku Kirika stated, “As an industry, we are committed to helping customers make smart financial decisions. By watching transaction fees and planning, customers can save money and improve their banking experience. PesaLink’s goal is to empower bank customers in Kenya with the knowledge and tools they need to manage their finances efficiently. With PesaLink, sending money has never been easier or more cost-effective.”
The launch of the Chora Plan campaign comes in response to the low levels of savings and high financial illiteracy rates in Kenya. Despite Kenya’s economic growth, low levels of savings and high financial illiteracy rates have hindered the financial well-being of many Kenyans. According to a 2021 Global Financial Literacy Survey, only 38% of Kenya’s population is financial literate, highlighting an urgent need for enhanced financial education.
About the Kenya Bankers Association:
KBA (www.kba.co.ke) was founded on 16th July 1962. Today, KBA is the financial sector’s leading advocacy group and banking industry umbrella body that represents total assets in excess of USD 60 billion. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry and championing financial sector development through strategic projects such as the launch of the industry’s first P2P digital payments platform PesaLink. In line with the Government’s policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative. The KBA members are comprised of commercial banks and deposit taking microfinance banks. For more information, visit www.kba.co.ke.
Media Contacts:
Christine Onyango
Director, Communications and Public Affairs
Email: conyango@kba.co.ke
Phone: 0711562910
