Government to merge six financial agencies to form mega development bank

Head of Public Service Joseph Kinyua

 

The Government is in the initial stages of merging financial organisations that offer loans into one mega institution.

According to the plan, the new agency will be a one-stop-shop for loans from the Government ranging from industrial development to lending for a specific cadre of people such as women and the youth.

An inter-agency task force tasked with merging the functions of existing organisations that run parallel roles has been established.

The financial agencies to be merged include the Kenya Industrial Estates, the Development Bank of Kenya, and the Industrial Development Bank of Kenya.

The others are Uwezo Fund, Youth Enterprise Development Fund, and Women Enterprise Development Fund.

This is expected to increase efficiency and eliminate overlaps.

The first task of the inter-agency task force is to review the regulatory and institutional framework involved in the process to make the merger and transition seamless.

Head of Public Service Joseph Kinyua has issued a circular to the affected agencies informing them of the decisions to be implemented in the interim period.