This archive report was first published on 25 September 2021.
On September 25, 2021, the Kenya Bankers Association (KBA) held its annual banking research conference in Nairobi, Kenya, where the association's vice-chair Rebecca Mbithi highlighted the banking sector's key role in steering economic recovery in the wake of the COVID-19 pandemic.
According to Mbithi, who is also the Chief Executive Officer of Family Bank, the banking sector proved resilient during the pandemic by providing liquidity support to cushion institutions, small and medium enterprises, and households.
"The mitigating measures against the effects of the pandemic taken by the banking industry were fast and decisive, showing that we built a resilient sector with adequate capital and liquidity buffers, which remained strong to support businesses navigate the adversities associated with COVID-19 without compromising systemic stability," she said.
However, Mbithi noted that the stability of the banking sector does not imply immunity to economic crises and shocks, adding that crises and shocks present risks that call for proactive mitigation plans.
KBA CEO Habil Olaka emphasized the digital readiness of the banking industry, which has been instrumental in preventing the health crisis from degenerating into a financial crisis.
"The clarion call throughout this conference has been the need to explore avenues to build and sustain resilience even as we continue to seek a lasting solution to the pandemic. To this end, there have been discussions around enhancing both structural and operational efficiency as a pathway to reducing operational costs, besides enhancing customer experience," he said.
