State to fortress Banking Sector for Economic gains

Nairobi

Thursday August 3, 2023

KNA by Daisy Masinde

The government has reaffirmed its commitment in supporting the banking sector to create a momentum for economic vibrancy and sustainability in order to target job creation for the youth.

National Treasury Cabinet Secretary (CS) Prof Njuguna Ndung’u said that the banking system will continue to play a critical role in the implementation and realization of the current administration’s economic transformation agenda which is useful to Kenyans.

Ndung’u reaffirmed that the government will continue to move investments to high productive activities and even sectors that can be prioritized or have been earmarked so that they can improve in sectors like agriculture and universal healthcare.

He highlighted four key drivers for the economic recovery agenda including human capital nature, markets, domestic resource mobilization and digital/ industrial revolution.

According to the CS, there is a need to develop both financial and strategic markets before nurturing, protecting and regulating them because the government is working on digitizing all the services from payments to production.

“Kenya and the African Union (AU) are hosting the climate summit in September which is going to be an eye opener because we can create an avenue on climate finance that is going to help in all other avenues in climate finance,” he remarked.

Ndung’u who was presiding over the Diamond Trust Bank Group (DTB) Economic and Sustainability Forum at a Nairobi hotel also noted that the government will continue to play a vital role to ensure that a policy regulatory framework responds to market needs since it’s a requirement for a well-functioning banking sector.

“Regulation is not making an act! If you want to understand the market you must be closer to it and if you are going to ignite development you have to understand the market as well,” advised Ndung’u, reiterating the need for regulators to understand how the market works.

He observed that for inclusivity, stakeholders require the strong institutions of the regulators for they are able to understand market dynamics and develop solutions that are consistent in market behaviour.

“This forum has given us a unique opportunity to recognize the constraints we face and seek solutions as well as marking out a long-run strategy on which sustainability depends on,” Cited Ndung’u.

The CS expressed his delight to join the DTB community and appreciated them for their role in supporting Small and Medium Sized Enterprises (SMEs) who also play a central role in supporting economic growth.

Also speaking at the event, DTB Group Chief Executive Officer (CEO) and Managing Director Nasim Devji said that the forum brings together subject matter experts, businesses and other stakeholders to discuss critical and emerging issues with a view to catalyze participation in the nation building agenda.

“This forum’s theme, ‘Kenya Economic Outlook, Prospect, Opportunities and Challenges’ for businesses is carefully chosen to help us appreciate the current economic status and identify opportunities that will fuel growth and success in the years ahead,” she voiced.

Devji noted that the forum comes against the backdrop of increased and prolonged local uncertainty that continues to shake and test Kenya’s economy and business modules hence the obligation to continue to find ways which will navigate these challenges.

“As businesses, we need to have a clear vision of the horizon and set ourselves accordingly so we should hold meaningful and candid engagements that prepare us well enough to thrive in the uncertain environment,” she added.

The CEO lauded the government for the focus and continued support for businesses by building resilience within the private sector and prioritizing economic policies that promote discipline.

Devji maintained the DTB continues to provide comprehensive financial support, change of solutions and expert dialogues that align with all required business objectives insisting that DTB is not just the government’s financial partner but aims to be its strategic ally in navigating the economic landscape with confidence.

Courtesy ; K. N. A