Financial Institutions
Banking Sector
The Kenya’s banking sector comprises of Central Bank of Kenya (CBK), as
the regulatory authority, 43 banking institutions (42
commercial banks and 1 mortgage finance company), 9
representative offices of foreign banks, 13 Microfinance
Banks (MFBs), 3 Credit Reference Bureaus (CRBs), 19 Money
Remittance Providers (MRPs), 8 non-operating bank holding
companies and 70 foreign exchange (forex) bureaus. The brief statistics of the sector are:
| Metric | Value in 2018 |
| Number of institutions | 165 |
| Total Asset Base | KSh 4.41 trillion (~ $44.1 Billion) |
| Customer Deposits | KSh 3.26 trillion (~ $33 Billion) |
| Total Loans | KSh 2.5 Trillion (~ $ 25 Billion) |
| Total Income | Ksh. 513.5 billion (~ $5.14 Billion) |
| Pre-tax Profit | KSh 152.7 billion (~ 1.53 Billion) |
| Number of account holders | 55,279,473 |
| Number of staff | 31,889 |
Source CBK Bank Annual Supervision Report 2018
The Annual Banking Supervision Report of 2018 from the Central Bank of Kenya lists cyber-crime as an emerging threat where criminals gain unauthorized access to institutions’ computer programs and data. As a result, there is an urgent need for the banking sector management to ensure increased use of computer-based transaction process is matched with effective controls. We assist banks in managing this threat through the following services:
- Information systems audit
- Compliance with regulatory requirements e.g Guidance note on cybersecurity
- Penetration testing and vulnerability assessment
- Information security awareness
ICT policies development and review
Microfinance Institutions
We provide Microfinance Institutions with the following services:
- Information systems audit
- Penetration testing and vulnerability assessment
- Information security awareness
- ICT policies development and review
Sacco Sector
The Sacco sub sector comprises both Deposit Taking and non-Deposit Taking Saccos. Deposit Taking Saccos (D.T. Saccos) are licensed and regulated by SASRA while non-eposit Taking Saccos are supervised by the Commissioner for Co-operatives.
As at 31st December 2018, the total number of licensed D.T. Saccos were 176, with a total membership standing at 4.2 Million people in 2018 from 3.6 Million in 2017; while the gross loans during the year 2018 rose to Kshs 374.28 Billion from Kshs 331.21 Billion recorded in 2017. The total savings and deposits on the other hand increased to Kshs 341.91 Billion in 2018
SACCOs being member owned institutions and handling cash for its members require adequate guidance from industry experts such as Stract Consulting that can guide them, as they seek to ensure proper governance in place, manage credit risk, ensure regulatory compliance as well as invest in various information system. We have extensive experience n this sector having consulted with leading SACCOS, within the country.
The SACCO Supervision Report 2018 lists fraud and cybersecurity as one of the challenges facing SACCOs. The report lists “On the downside of it, the use of ICT platforms in the provision of financial services will always poses greater risks especially in regard to cyber security and fraudulent transactions. DT-SACCOs must thus invest in robust cyber security systems in order to protect the integrity of mobile or on-line transactions conducted on their platforms, particular members’ data and funds” We assist SACCOs mitigate this threat with the following services:
- Information systems audit
- Penetration testing and vulnerability assessment
- Information security awareness
- ICT policies development and review
- ICT Project assurance and project management