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— The Kenya Bankers Association (KBA) has voiced strong objections to two proposed bills seeking to regulate professionals within the banking sector. During a session with the National Assembly Public Petition Committee, KBA Acting Chief Executive Officer, Mr. Raimond Molenje, outlined the association’s opposition to the Bankers Professionals Bill, 2024, and the Credit Professionals Bill, 2023.
The Bankers Professionals Bill, introduced by Mr. Charles Ochola, aims to regulate bank executives, particularly targeting those involved in fraudulent activities. Mr. Ochola emphasized the need to enforce higher ethical standards in the banking sector, given its critical role in the country’s economy. “It is crucial to ensure that banking professionals uphold the highest standards,” he stated.
The Credit Professionals Bill, 2023, seeks to establish an institute responsible for the examination, registration, and regulation of certified credit professionals in Kenya. It aims to enhance the development of the credit profession through stricter oversight.
However, Mr. Molenje argued that the proposed regulations would stifle economic growth and limit employment opportunities within the banking sector. He pointed out that the sector employs a diverse range of professionals, from executives and lawyers to auditors, procurement officers, and even medical and hospitality experts. According to him, it is impractical to regulate such a varied workforce through these bills.
“The banking sector focuses on hiring based on competence and skills, rather than specific academic qualifications. These bills fail to recognize the complex, multi-disciplinary nature of the sector,” Mr. Molenje explained. He also noted that similar regulations do not exist in other jurisdictions, raising questions about the necessity of such measures in Kenya.
While Mr. Molenje expressed support for professional regulation in principle, he cast doubt on the motives behind the bills, suggesting they may be driven by self-interest and attempts to control banking operations.
Members of the Committee, led by Chair Hon. Nimrod Mbai and Vice Chair Hon. Janet Sitienei, questioned KBA’s opposition. Hon. Sitienei, MP for Turbo, challenged the association’s stance, asking why KBA, which already oversees banking professionals, was so strongly against government-backed regulation.
As discussions continue, the fate of the Bankers Professionals Bill, 2024, and the Credit Professionals Bill, 2023, remains uncertain. However, the debate has highlighted tensions between the need for professional regulation and concerns about over-regulation in a sector critical to Kenya’s economy.
