Kenya has abandoned its 2016 initiative to consolidate four financial sector regulators into a unified authority, a move that could have reduced public spending and improved oversight.
The proposed merger of the Capital Markets Authority (CMA), Retirement Benefits Authority (RBA), Insurance Regulatory Authority (IRA), and Saccos Societies Regulatory Authority (SASRA) faced indefinite postponement after the Cabinet halted the process last year.
Nzioka Waita, head of the Presidential Delivery Unit, confirmed the suspension, stating the reform would be revisited within a broader government entity restructuring framework. However, unnamed government sources attributed the delay to resistance from political and economic stakeholders.
"The reforms were sound, but implementation stalled due to fears of job cuts and reluctance to consolidate leadership roles," a source revealed. The current structure features four separate chief executives, while the merged entity would operate under a single leader.
The original bill aimed to eliminate redundancies across parastatals, streamline financial services regulation, and enhance consumer protections. Critics argue the decision undermines efforts to modernize Kenya’s financial oversight framework.
Auditor-General Edward Ouko previously warned that misreported loans from state corporations could cost taxpayers over Ksh30 billion ($300 million), highlighting the financial stakes involved in the reform.
