The Banking (Amendment) Act of 2016 enacted by the Kenyan Parliament was envisioned with the intentions of\nstabilizing lending and deposit taking transactions by financial service providers such as banks. However, the emerging\nreality is of a banking industry living through the significant effects of this Banking (Amendment) Act of 2016. The effects\nhave resulted in opposing conversations with those in support of continued implementation of the Act and those calling\nfor its repeal. Some of these effects are positive such as protecting customers from exploitation by greedy financial\ninstitutions. Other effects are negative such as declining capacity for banks to give loans and decrease in the ability of\ncustomers to borrow. In the face of these effects the banking sector has realized the unsustainability of the Act. The\nsector is calling for its repeal with several suggested ways forward such as diversifying funding sources for various\neconomic activities. However, whether one is in support of the Act or calling for its repeal, the reality is that the Kenyan\nbanking space has undergone a serious disruption. This calls for sustainable ways forward in regulation, customer\nprotection and cultivating growth of the banking industry.
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