KENYA SCHOOL OF LAW

ADVOCATES TRAINING PROGRAMME (ATP)

FIRM 12, CLASS A

ATP 108: COMMERCIAL TRANSACTIONS

PROJECT WORK FOR ACADEMIC YEAR
2021/2022

PRESENTED TO: MR. PETER KEYA

Tuesday, 26th October, 2021

 LIST OF CLASS A FIRM 12 MEMBERS
N STUDENT NAME REGISTRATIO SIGNATURE
O N NO.

1 NYAKWEBA WENDY 20210235

MAGOMA (Chairperson)
2 NYAGAKA HESBON MATOKE 20211600
( Firm Secretary)
3 JULIUS WAMBOI (Unit 20210584
Secretary)
4 MITEI KIPKORIR TONY 20210294
5 MUSINGO LENA 20211329
6 KAHIGA LYDIA 20211082
7 OMBEWA TRIZAH ATIENO 20210288
8 CAREN UNITY 20211344
9 WANGO ERIC 20211272
WAMBUGU
10 KIPKEMBOI VICTOR 20211523
11 MURUNGA VERAH 20211638 DEFERRED

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 CLASS A FIRM 12 STUDENTS’ DECLARATION
We hereby declare that this research project paper is our original work and has not been
presented or submitted to any academic institution in its entirety or in part or for any other
purpose other than The Kenya School of Law for academic credit for the year 2021/2022
to the best of our knowledge. We have conferred other works and referred to a range of
sources in preparing this research paper which have accordingly been acknowledged.

Nyakweba Wendy Magoma

Chairperson
……………………………..

Julius Wamboi
Secretary
…………………………...

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 Table of Contents
LIST OF CLASS A FIRM 12 MEMBERS i

CLASS A FIRM 12 STUDENTS’ DECLARATION iii

LIST OF LAWS vi
Laws of Kenya vi
II. Other Jurisdictions vi

LIST OF ABBREVIATIONS vi

ABSTRACT viii

RESEARCH QUESTIONS viii

HYPOTHESIS viii

1.0 HISTORY OF THE FINANCIAL SERVICE SECTOR REGULATION IN

KENYA 1
Introduction 1
Banking 1
Insurance 2
Saving and credit cooperatives societies (Sacco’s) 3

2.0 THE REGULATORY FRAMEWORK OF THE FINANCIAL SERVICES IN

KENYA. 5
Introduction 5

Nature Of The Current Regulatory Framework Of The Financial Services In Kenya 6

Banking Act 6
Central bank Act 6
The insurance sector 7
Capital markets 8

The Inadequacies Of The Current Financial Services Sector Regulatory Framework 9

3.0 THE UNIFIED REGULATORY FRAMEWORK 12

4.0 COMPARATIVE ANALYSIS OF DIFFERENT JURISDICTION 15

Introduction 15

UNITED KINGDOM (UK) 15

Legal framework 16

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 Financial policy committee 16
Financial conduct authority 16
Prudential regulation authority 17
Conclusion 17

ZAMBIA 19
Bank of Zambia 20
Banking and finance services Act 21
Pension and insurance authority 21

Conclusion 23

CONCLUSION AND RECOMMENDATION 24

BIBLIOGRAPHY 26
JOURNAL ARTICLES 26
INTERNET SOURCES 27

MINUTES 30

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LIST OF LAWS

I. Laws of Kenya
1. Banking Act Chapter 488 Laws of Kenya
2. Banking (Amendment) Bill 2011
3. Capital Markets Act Cap 485A Laws of Kenya
4. Deposit Insurance Act No. 10 of 2012 (Rev 2019)
5. Guideline on Agency Banking CBK/PG/15 February 2011
6. Insurance Act Chapter 487 Laws of Kenya
7. National Payment Systems Act No. 39 2011
8. National Social Security Fund (Amendment) Act 1997
9. National Social Security Fund Act No 53 of 2014
10. Retirement Benefits Act 1997
11. Sacco Societies Act No. 14 of 2008

II. Other Jurisdictions

1. Bank of Zambia Act 1996
2. Banking and Finance Services Act Cap 387 (Zambia)
3. Financial Services Act 2012 (UK)
4. Insurance Act No. 38 of 2021(Zambia)
5. Pension Scheme Regulation Act No. 27 of 2005 (Zambia)
6. Securities Act No. 41 of 2016 (Zambia)

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LIST OF ABBREVIATIONS
BOZ - Bank of Zambia
CBK - Central Bank of Kenya
CMA - Capital Market Authority
GDP - Gross Domestic Product
FCA - Financial Policy Committee
FPC - Financial Policy Committee
IRA - Insurance Regulatory Authority
NSSF - National Social Security Fund
PIA - Pension and Insurance Authority
PRA - Prudential Regulation Authority
RBA - Retirement Benefits Authority
SACCO - Savings and Credit Cooperative Organization
SASRA - Sacco Societies Regulatory Authority 
UK - United Kingdom

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 ABSTRACT
This study will analyze the current model of regulation of the financial service sector in
Kenya. It will examine whether it has achieved its purpose, its benefits and disadvantages. It
will also examine the unified regulatory framework and discuss its strengths and weaknesses.
In addition it will also examine the applicability of a unified regulatory system in different
jurisdictions. The study will also propose the best alternative model that Kenya can adopt to
shift from its fragmented system which is weak and experiences numerous inadequacies.

RESEARCH QUESTIONS
The following questions will be posed and addressed in the course of this research:
i. What is the nature of the current regulatory framework of the financial services
sector in Kenya?
ii. What are the strengths and weaknesses of a unified regulatory framework of the
financial service sector?
iii. What lessons can Kenya learn from jurisdictions with a unified regulatory system?
iv. What is the best alternative financial service sector regulatory system that Kenya
can adopt?

HYPOTHESIS
The researchers under this study worked on the assumption that:
i. Kenya’s existing regulatory framework of the financial sector is weak.
ii. There is a need to adopt a new system that will take care of the inadequacies in the
current system.

viii | Page
 HISTORY OF THE FINANCIAL SERVICE SECTOR REGULATION IN
KENYA
1.1 Introduction
A financial service refers to any form of economic service or product of financial nature provided
by the financial industry, it includes institutions that offer financial related services such as banks
and insurances.1

The financial services sector in Kenya has evolved since pre independence. At independence, the
monetary and financial system in place served the interests of the colonialists. After independence,
there were efforts to ensure that there was proper control of the financial and monetary system to
facilitate the attainment of economic, social and political objectives.2

The Financial service system was initially made up of the following sectors; banking, insurance,
Savings and Credit Cooperative societies (SACCOs) and Retirement and pension Schemes.
1.2 Banking
The pioneering banks concentrated on financing international trade along the Europe-South Africa–
India axis before spreading to other parts. The sector in Kenya started with operation of quasi-bank
services by Indian money lenders. The operations extended from Zanzibar with the Kenyan coast
being a business point for many traders hence attracting the setup of the first bank in Mombasa
Jetha Lila Bankers from India, which was established in Zanzibar in 1880. Smith Mackenzie had a
Mombasa branch in 1887 which was taken over by the Imperial British East Africa (IBEA) in
1888.3 In 1889 the National Bank of India appointed the trade house of Smith Mackenzie to be their
agent in Zanzibar.4

In July 1896, the National Bank of India established a branch in Mombasa renting premises from
Sheriff Jaffer where the expansion of banking networks grew to other towns. The spread continued
to 1904 when they opened a branch in Nairobi. In 1910 the East Africa Protectorate passed the
Ordinance for the Regulation of Banks. This was among the very first forms of regulation of the
system and the services were now available for Africans.5
In Kenya, the sector was regulated under the Banking Ordinance legislation, which was inherited by
the government at independence from the colonial regime. The National Bank of Kenya was
established in 1968 as the first state owned bank.

1 International Center for Monetary and Banking Studies (ICMB), ‘The Fundamental Principles of Financial
Regulation’ (2009) 11 Geneva Reports on the World Economy.
2 Samra Chaudary and Daisy Salvador-Adebayo, ‘Why Regulate Financial Markets? The Underlying Rationale for
Financial Regulation in the Wake of the Current Crisis’ (2019).
3‘Banking Development CBK’ <https://www.centralbank.go.ke/banking-development/> accessed 22 July 2021.
4 ibid.
5 ibid.
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The Banking Act was enacted in 1969 and later replaced by the Banking Act of 1989. The Act
mandated the Kenyan Central Bank to take over the control of monetary and financial policy,
introduce the Kenyan currency, establish state owned community banks, buy shares in existing
banks and create banking legislation in Kenya.6 In 1977 Dr. Mary Okello became the first woman
bank manager.7 However, there were many challenges in the banking legislation which saw the
sector going into crisis and losing the trust of many in the 1980s and 1990s where many banking
institutions collapsed.

Deposit Protection Fund was established in 1986 while cheques in the 90s several developments
including the introduction of the first automated teller machine was introduced by standard
chartered. In 2003, it was noted further by the Central Bank of Kenya that the banking sector was
still experiencing difficulties that would undermine the achievement of the objectives set out in the
Economic Recovery Strategy. In 2004 the cooperative bank introduced the first mobile banks; later
in 2007 the Mpesa mobile network was launched and the development saw mobile banking highly
embraced by the banking industry for mobile transactions.8

In 2009 the cooperative bank introduced agency banking where the bank would avail some of the
financial services through agents .The family bank launched the very first mobile banking called
pesa pap in 2010 while pesa link was launched six years later to enhance technological and digital
payment solutions to enhance bank to bank transfer of money platform. 9 In 2016, the National
Assembly passed the Banking (Amendment) Bill, intended to regulate interest rates that are
applicable to banks’ loans and deposits, capping the interest rates that banks can charge on loans
and must pay on deposits. In 2019 the Cap interest Act was repealed in effort to boost the economic
growth in East Africa.10
1.3 Insurance
The white settlers invested largely in the Kenyan highlands especially in the agricultural sector,
which was prone to high risks and created the demand for insurance covers for their investments. 11
This pressure led to the establishment of several insurance agencies which were owned by the
British at the time.12 They included Pan Africa Insurance, Pioneer Assurance Society, Jubilee
Insurance Company and Provincial Insurance Company Limited.

6 Banking Act Chapter 488 Laws of Kenya

7 ibid.
8 Government of Kenya, „Economic Recovery Strategy Paper‟, Wealth Creation and Employment (Nairobi 2003)
9 The history of banking in Kenya , <www.bankinghistory.kba.co.ke > Accessed on 30th July 2021
10 ibid.
11 Maxwell Goko, “The Origin of the insurance business in Kenya” p2/7/2012
12 Lancaster University Management School, “Insurance Industry in Kenya” Working Paper2004/046
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The United Nations Conference and Trade Development helped Kenya realize the need for the
legislation to control the sector and this brought about the promulgation of the Insurance Ordinance
of 1960. Its main function was to control the establishment, financing and working system of the
insurance companies.13 After the attainment of independence in 1963 all insurance institutions had
fully been upgraded to insurance companies; however, there was no established Kenyan insurance
legislation.

The Insurance Act Cap 487 was enacted in 1986 and enforced in 1987. 14 The Act provided for the
office of a Regulator and the requirements for registration of insurance and reinsurance companies
and other players in the field like the agents and brokers.15 The Association of Kenya Insurers (AKI)
was established in 1987 as an advisory body for the insurance industry. The insurance sector is
regulated by the Insurance Regulatory Authority (IRA) which was created by an amendment to the
Insurance Act in 2006. The Authority was established to regulate, supervise and develop the
insurance industry. Previously, these functions were undertaken by the department of insurance in
the Ministry of Finance.16

1.4 Saving and credit cooperatives societies (Sacco’s)

The colonial government saw the need for Africans to participate in economic development through
Co-operatives societies and established the first Co-operative Society in 1908.17 This paved the way
for the creation of new societies and led to fast growth rate of the sub-sector. The lack of legislation
to supervise the Cooperative Societies led to exposure to certain risks such as mismanagement of
funds.18 The need for specific legislation resulted in the enactment of the Co-operative Societies
Ordinance in 1946 which was to regulate and supervise their operations.19

The Authority was given the mandate to license and regulate Sacco's and provide guidelines for the
protection of member's deposits.20 Initially, Sacco's were governed by the Cooperative Societies Act
1997(Cap 490).21 The Act had a mandate to enhance transparency, accountability, and good

13 ibid
14 Insurance Act Cap 487 , 1986 Laws of Kenya (Repealed)
15 Insurance Act Cap 487 , 1986 Laws of Kenya (Repealed)
16 Insurance Regulatory Authority , https://www.ira.go.ke/index.php/about-us/ira-history accessed on 24th July 24,
2021
17 Kibaara, Betty. "Rural financial services in Kenya: what is working and why?" (2006).
18 Bwana, Kembo M., and Joshua Mwakujonga. "Issues in SACCO’s development in Kenya and Tanzania: The
historical and development perspectives." (2013).
19 Mumanyi, E. A. L. "Challenges and opportunities facing SACCOs in the current devolved system of government of
Kenya: A case study of Mombasa County." International Journal of Social Sciences and Entrepreneurship 1, no. 9
(2014): 288-314.
See also: Nyoro, James K., Maria Wanzala, and Tom Awour. Increasing Kenya's Agricultural Competitiveness: Farm
Level Issues. No. 680-2016-46741. 2001.
20 Sacco Societies Act No. 14, 2008.
21 Cooperative Societies Act Chapter 490 Laws of Kenya
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corporate governance in the management of Sacco’s.22 The Act provided for licensing, regulation,
supervision of Sacco Societies.23 It later established the Sacco Societies Regulatory Authority
(SASRA).

The interests of the retirement scheme members and their beneficiaries were not adequately
protected. The main reason for reform was to address the burden of pension liabilities in Kenya.24
The major force for reform was to ensure governance, management and effectiveness of the existing
pensions system.25 The National Social Security Fund (NSSF) 26 had some issues regarding
governance investments and payment of benefits. This led to mistrust in the pension schemes by the
public.27 The Retirement Benefits Act was enacted in 1997 to strengthen the governance,
management and effectiveness of the pensions sector.28 The Retirement Benefits Authority29 was
established in 2000 to regulate, supervise and promote the retirement benefits in Kenya. Some of
the positive outcomes of the legislation include benefit coverage, benefit adequacy and growth of
the retirement savings.30

22 Ibid.
23 Alila, Patrick O., and Paul O. Obado. "Co-operative credit: the Kenyan SACCOs in a historical and development
perspective." (2012).
24 Bwire, L.A., 2018. The Fiscal implications of introducing a non-contributory social pension system in
Kenya (Doctoral dissertation, Strathmore University).
25 Sundeep K Raichura, Analytical Review of the Pension System in Kenya (2008)
www.http\\U:\oecd\OECDPaperFinal.doc> accessed 23 July 2021.
26 National Social Security Fund Act No. 45 2013.
27 Supra Note 5.
28 Njuguna, Caroline R. "Impact of retirement benefits regulations on the cost efficiency of retirement benefits
schemes in Kenya." PhD diss., university of Nairobi, 2010.
29 Retirement Benefits Authority Act 2007.
30 Kusewa, L. M. "The impact of regulation of the retirement benefits sector on the financial performance of
occupational pension schemes in Kenya." PhD diss., 2007.
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 2.0 THE REGULATORY FRAMEWORK OF THE FINANCIAL SERVICES IN
KENYA.
2.1 Introduction
Kenya's financial services sector consists of different subsectors, including banks, insurance
companies, securities markets, pension schemes, Savings and Credit Co-operatives (SACCOs).

The sub-sectors are regulated by different independent statutory bodies which include; Insurance
Regulatory Authority, Retirement Benefit Authority, Capital Market Authority and Regulatory
Authority of Sacco Companies.31 It should be noted that there are several government agencies that
regulate specific sub sectors of financial services.32

Institutions under the supervision of the Ministry of Finance;33

i. The Central Bank of Kenya, which oversees all commercial banks, non-bank financial
institutions, mortgage companies, currency bureaus, mortgage credit associations, and
microfinance institutions.
ii. The Retirement Benefit Authority is responsible for overseeing the pension department and
supervising retirement benefit plans, national social security fund managers, fund managers
and custodians.
iii. The Insurance Regulatory Authority supervises all insurance companies, brokers, insurance
agents, appraisers, claims adjusters and health management companies.
iv. The Capital Market Authority regulates the securities market, fund managers, central
depository systems, custodial investment banks, collective investment plans, investment
advisors, stockbrokers, securities brokers, listed companies, credit rating companies and
venture capital companies.
v. SACCOs Securities Regulatory Bureau supervises all savings and credit cooperatives.

31Charles Kombo, ‘The Upshot of Financial Sector Regulation on the Financial Market Performance in Kenya
Perspectives from Kisii County, Kenya’ (2013) 2 Business Management Dynamics 1.
32 ibid.
33 ibid.
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 2.2 NATURE OF THE CURRENT REGULATORY FRAMEWORK OF THE
FINANCIAL SERVICES IN KENYA

2.2.1 Banking sector

The banking industry is governed by the Banking Act and the Central Bank of Kenya. The Central
Bank formulates and implements monetary policies to promote liquidity, solvency, and the normal
functioning of the financial system.34

2.2.2 Banking Act

This Act provides guidelines to supervision of the banking business in Kenya. The Central Bank is
mandated with supervision and control of banking institutions. 35 This includes the power to set
prudential guidelines that institutions must follow to maintain a stable and efficient banking and
financial system.36 These guidelines cover various aspects including, the licensing of new
institutions, corporate governance, capital adequacy ratios, restrictions of exposure to the exchange
rate, publication of financial statements and others disclosure and application of banking laws and
regulatory agencies.37
There is a proposed Banking (Amendment) Bill that seeks to address the challenges faced by
consumers in the banking sector and strengthen the framework for cooperative governance and risk
management. This is by establishing a ceiling on the interest rates charged by banks and financial
institutions on foreign currency loans and advances.38 The Bill also proposes to determine the
minimum interest rate that financial institutions or deposits in interest accounts must pay. It will
allow banks to strengthen liquidity management and sub-sectors to deal with cross-border risks.39

2.2.3 Central bank Act

The Central Bank Act operationalizes Article 231 of the Constitution of Kenya 2010. 40 It governs
the operations of the CBK, making it the supervisor of all banking institutions in Kenya. The CBK
also issues licenses to other financial service providers that have developed due to advancement in
technology such as;

34 Central Bank of Kenya Act Chapter 491 Laws of Kenya.

35 Banking Act Chapter 488 Laws of Kenya.
36 Sonal Sejpal and Mona Doshi, ‘Banking in Kenya, Banking Regulation’ (1st edn, Global Legal Group 2012)
37 Banking Act, section 33(4).
38 Banking (Amendment) Bill 2011.
39 Sonal Sejpal and Mona Doshi, ‘Banking in Kenya’ Banking Regulation (1st edn, Global Legal Group 2012)
40 Constitution of Kenya art 231.
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 i. Agency banking business, introduced in 2010 through prudential guidelines to determine
how banks and other financial institutions conduct business through agents. 41 For an entity
to be eligible, it must have a business license or permit for legal business activities.
ii. Electronic banking enables customers to open digital accounts, send and receive funds, pay
utility bills, and obtain credit through mobile applications.42

The above businesses are not deposit-taking institutions and therefore, they are not authorized under
the Banking Act. This means that deposits held in currency transfer accounts are not protected by
the Deposit Protection Fund Committee.43 However, the CBK has not fully regulated these financial
services which are designed to allow users to complete basic banking transactions remotely.

2.3 The insurance sector

2.3.1 The insurance Act
The Insurance Act was enacted to regulate the insurance sub-sector. 44 Through the 2006
amendment, it established the Insurance Regulatory Authority, which replaced the Insurance
Commission and became an agency responsible for overseeing and regulating the insurance
industry. In 2010, other amendments to the Insurance Act were made expanding the supervisory
powers of the Insurance Regulatory Authority.

2.3.2 Kenya deposit insurance Act

The Kenya Deposit Insurance Act enacted after the banking crisis that started in 2008. It establishes
the Kenya Deposit Insurance Corporation to replace the Deposit Protection Fund Committee. This
agency is an independent department of CBK. The Act provides for the establishment of a deposit
insurance system, the taking over and the liquidation of depository institutions. The reason for this
is to prevent deposit-taking institutions from incurring losses in the event of insolvency and
receivership.45

41 Guideline on Agency Banking CBK/PG/15 February 2011.

42 National Payment Systems Act No. 39 2011.
43 Philip Mulwa and Rafe Mazer, “Is Kenya Ready for a Mobile Virtual Network Operator?”
<http://www.cgap.org/blog/kenya-ready-mvno> accessed 21st July 2021.
44 Insurance Act Chapter 487 Laws of Kenya.
45 Kenya Deposit Insurance Act No. 10 of 2012 (Rev 2019).
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 2.3.3 Savings and credit cooperative (SACCO)
Sacco mobilizes voluntary public deposits from its members on a larger scale and is a public unit
with equal ownership by individuals. SACCOs are regulated by Sacco Societies Regulatory
Authority which was established in 2008 The Sacco Societies Act. 46 The authority is responsible for
issuing licenses, regulating and supervising Sacco societies. 47 It also holds, manages and applies
general funds of the authority in accordance to the Act.48

2.3.4 Capital markets

The Kenyan capital market is regulated by the Capital Market Authority established by the Capital
Market Act.49 The Authority is responsible for supervising and licensing the activities of market
intermediaries, including stock exchanges, central deposit, settlement systems.50 The Authority also
promotes the development of markets and institutions through researching new products and
promoting investors.51

The Capital Market Authority has also created derivatives, which are basically contracts designed to
create exposure to the market price due to changes in raw materials, assets or underlying events. In
Kenya, derivatives are supervised by the Nairobi Securities Exchange, allowing the listing and
trading of multiple asset terms, including stocks, currencies, and interest rates. These derivatives
increase the liquidity of the underlying assets and are considered to be one of the most affordable
and convenient methods for investors to hedge against interest rate fluctuations, exchange rate
dynamics and commodity price fluctuations.52

2.4 Retirement plans/pension schemes

The Retirement Benefits Act53 establishes a Retirement Benefits Authority to regulate and supervise
retirement benefits plans. They include the National Social Security Fund (NSSF), public service
pension plan, career plan and personal plan under trust.54 However, the NSSF Act of 2014 was

46 No. 14 of 2008.
47 ibid s 5.
48 Ibid.
49 Capital Markets Act Cap 485A Laws of Kenya.
50 http://www.cma.or.ke/index.php?option=com_content&view=article&id=33&Itemid=114 accessed 21st July
2021.
51 Ibid.
52 Joshua Masinde, ‘Kenya to Launch Derivatives Market’ Daily Nation, Sunday 21 December 2014
http://mobile.nation.co.ke/business/Kenya-to-launch-derivatives-market/-/1950106/2565038/-/format/xhtml/-
/safsuq/-/index.html, accessed 21st July 2021.
53 National Social Security Fund (Amendment) Act 1997.
54 Retirement Benefits Act Chapter 197 Laws of Kenya.
8 | Page
revised to strengthen its institutional and governance framework. The Act focuses on increasing
coverage, matching benefits, and growing retirement savings.55

In accordance with the "Retirement Benefits Act", regulations were formulated to reduce the
concentration of risks and carry out the diversification of assets. Since the initial regulations were
issued in 2000, there have been additional regulations to improve the protection of member benefits.
The Retirement Benefit Authority has carried out and led reforms to provide financial security to
beneficiaries and dependents.56 With respect to the existing legislation for the pension sector,
including the improvement of the protection of the rights of members, the key to measures to
protect the interests of members is the separation of roles between the spouse of the plan, the
fiduciary and professional advisor, and the provision of prescribed deadlines for processing welfare
payments and Regulations for planning interest payment delay are made more frequently through
annual audits, periodic actuarial reviews, and new reporting requirements.57

2.5 The Inadequacies Of The Current Financial Services Sector Regulatory Framework
Financial regulations seek to control financial services providers, ensure the legitimacy of financial
products and services, maintain order and stability in the financial sector and protect the
consumer.58 A regulatory framework should therefore be structured in a way that foresees future
trends in the sector and is flexible enough to accommodate the emerging trends. These emerging
trends, especially in the financial sector if not addressed by regulation might be brewing a financial
crisis in the country. Therefore, the financial services sector regulation framework needs to be alert
and quick to respond to the emerging trends, so as to achieve the overall objectives of the regulation
and avoid a crisis.

However, our regulatory framework as structured, with different regulators exercising their own
special jurisdiction leaves an emerging issue in the financial sector hanging and unregulated. This is
because such areas might not fall under the special jurisdiction of a regulator in the financial sector
and therefore allowing it more time to create problems that are sometimes irreversible. 59 For
example, digital lending is strongly emerging in the financial services sector and has remained

55 National Social Security Fund Act No 53 of 2014.

56 Joshua Masinde, ‘Kenya to Launch Derivatives Market’ Daily Nation, Sunday 21 December 2014
http://mobile.nation.co.ke/business/Kenya-to-launch-derivatives-market/-/1950106/2565038/-/format/xhtml/-
/safsuq/-/index.html, accessed 21st July 2021.
57Charles Mwaniki, “Derivatives Trading at Nairobi Bourse Set to Start by June,” Business Daily Wednesday 4 March
2015 http://www.businessdailyafrica.com/Derivatives-trading-at-Nairobi-bourse-set-to-start-by-June-/-
/539552/2641582/-/ig3vtez/-/index.html, accessed 21st July 2021.
58Joseph Stiglitz, ‘Regulation and Failure’ (2010). 12 Revista de Economía Institucional,
<https://www.tobinproject.org/sites/tobinproject.org/files/assets/New_Perspectives_Ch1_Stiglitz.pdf> accessed 23 July
2021.
59 Lebu Angela Anyango, ‘Financial Services Regulation in Kenya: A Critical Analysis of the Proposed Unified
Financial Services Regulator’ (LL.M thesis, University of Nairobi 2014).
9 | Page
unregulated for a while now. It continues to cause unending debates and raises several unanswered
questions such as who should regulate digital lending?

A regulatory framework should be structured in a way that seeks to achieve an objective. The
Kenyan regulatory framework is institutional-based rather than objective-based and is also
characterized by duplication of functions and overlaps. 60 For example, the administration and
regulation of fund managers is done by two regulators, the Retirement Benefits Authority and
Capital Markets Authority.61 The registrar of companies is also involved in the process, since to be
registered as a fund manager, one must be a limited liability company incorporated under the
Companies Act.62

Section 22 of the Retirement Benefits Act states that no person shall act as a fund manager unless
he is registered under the Retirement Benefits Act and holds a valid certificate of registration issued
pursuant to the provisions of the Act. 63 Section 29 of the same Act requires a fund manager to pay
annual registration fees as may be prescribed by the RBA. 64 The RBA also is mandated with the
inspection and auditing of managers. 65 The Capital Market Authority on the other hand is tasked
with granting licenses to fund managers and ensuring their proper conduct in that business.66

There is a thin line differentiating licensing and registration, nevertheless, the two are directly
linked to regulation or rather are key components of regulation. The functions of the CMA and
RBA should without a doubt be performed by one regulator so as to achieve the objective. In an
institutional-based regulatory framework, when questions of accountability come up, the regulators
are likely to pass the blame to others, therefore causing confusion, slow objective achievement, and
poor service delivery.67

While regulation is meant to play a key role in risk control and providing authority to regulators in
the sector over the financial services players so as to build public confidence, in the past decade,
incidences of regulation failure have been experienced. In 2018 for example, 17 banks failed owing
depositors over ten billion.68 It must be noted that this was under the watch of CBK, which is

60 Nzomo Mutuku, ‘Case for Consolidated Financial Sector Regulation in Kenya’ (2008).
61 Jacob Gakeri and S Candidate, ‘Financial Services Regulatory Modernization in East Africa: The Search for a New
Paradigm for Kenya’ (2011) 1 International Journal of Humanities and Social Science.
62 Retirement Benefits Act, 1997, s 25.
63 Retirement Benefits Act, 1997, s22
64 Retirement Benefits Act, 1997, s 29
65 Retirement Benefits Act, 1997, pt. 5.
66 Capital Markets Act, 1989, s 11(3).
67 Gakeri J and Candidate S, “Financial Services Regulatory Modernization in East Africa: The Search for a New
Paradigm for Kenya” (2011) 1 International Journal of Humanities and Social Science.‌
68 Central Bank of Kenya, ‘Statistical Bulletin’ (2019). See also Dominic Omondi, ‘Big shots, corporates vanish with
Sh79b failed banks loans’ The Standard Insider (Nairobi, 29 July 2020) <https://www.standardmedia.co.ke/the-
standard-insider/article/2001380416/big-shots-corporates-vanish-with-sh79b-failed-banks-loans> accessed 20th July
10 | Page
charged by law to supervise liquidity, solvency, and proper functioning and creating stability in the
banking system.69 A research conducted on issues affecting collapsed banks from 2015 to 2016
when a number of commercial banks were recorded to fail including Chase Bank, stated that
regulation failure was one of the major reasons. 70These banks deteriorated their cash reserve ratio,
failed to honor financial obligations and violated banking laws and regulations under the nose of the
regulator.71 It makes it difficult to gain public confidence and assure them of the financial services
offered after such cases.

We cannot ignore that our financial regulatory framework has some advantages such as addressing
the uniqueness of each area in the financial sector making it easy to have tailored regulatory
solutions addressing sector-specific issues. It also creates a broad system of checks and balances. 72
However, we conclude that it has not fully achieved the purpose of an ideal regulatory structure.
Less attention has been put in its construction hence duplicity and other regulation failures. There is
a need to consider the structure of our regulatory framework and create an operational regulatory
framework that looks into these deficiencies and that is less duplicative, with well-outlined
objectives and is flexible to accommodate market dynamics while still maintaining the advantages
of the current regulatory model.73

2021.
69Robert Gathaiya, ‘Analysis of Issues Affecting Collapsed Banks in Kenya from Year 2015 to 2016’ (2017) 7 IJMBS
<http://www.ijmbs.com/Vol7/73/1-robert-n-gathaiya.pdf> accessed 22 July 2021.
70 ibid
71 Robert Gathaiya, ‘Analysis of Issues Affecting Collapsed Banks in Kenya from Year 2015 to 2016’ (2017) 7
IJMBS.
72Joseph Stiglitz, ‘Regulation and Failure’ (2010). 12 Revista de Economía Institucional
<https://www.tobinproject.org/sites/tobinproject.org/files/assets/New_Perspectives_Ch1_Stiglitz.pdf> accessed 23rd
July 2021.
73 Jacob Gakeri and S Candidate, ‘Financial Services Regulatory Modernization in East Africa: The Search for a New
Paradigm for Kenya’ (2011) 1 International Journal of Humanities and Social Science.
11 | Page
 3.0 THE UNIFIED REGULATORY FRAMEWORK

The previous topics have depicted that the financial sector in Kenya is scattered across different
regulators. The scattering is elicited by the fact that each financial sector is structured according to
functions designed for a given sector

There has been attempts to unify the financial sectors in Kenya. It all started way back in the year
1998 when the Capital Market authority noted in its report that It was necessary to harmonize and
consolidate the scattered financial sectors in Kenya.74 A study in 2007 showed that there was a
perceived need to restructure the regulatory framework of Kenya’s financial sectors towards a
unified one.75 The same position was retaliated in 2012 when the Ministry of finance proposed a
new system of financial sector supervision, designed to phase out the multiple financial sectors to
foster growth and steady development. The new system entailed the merger of the four regulators
into a single authority i.e. the Central Bank of Kenya (CBK), Capital Markets Authority (CMA),
Retirement Benefits Authority (RBA), Insurance Regulatory Authority (IRA) and Sacco Societies
Regulatory Authority (SASRA). 76

The urge to unify or not is dependent on its advantages and disadvantages and also whether the
unification will be the most appropriate and if not whether there exists appropriate alternatives.

3.1 Arguments In Favor of a Unified Regulatory Framework

Arguments in favor of a unified regulatory framework are as follows:
1. A unified regulatory framework will result in efficiency gains. The unification will lead to
revision of the supervisory network into one, thereby reducing the need to comply with
different regulators.77 This is a score on efficiency because one will seek clearance for a
particular business under one roof.
2. Where different financial sectors are brought under a unified regulatory framework, the
financial sector will benefit from easy conflict resolution. This is because a single regulator
is better placed to identify, decide and implement a decision collectively than leaving the
implementation to different regulators to decide.78
74 Capital Markets Authority Annual Report (1998) at Page 35
75 Waweru Guandaru Mathenge, Financial regulatory structure reform in Kenya: the perception of financial
intermediaries in Kenya regarding the case for a single financial regulator,(Semantic Scholar, 2007) <
https://www.semanticscholar.org/paper/Financial-regulatory-structure-reform-in-Kenya%3A-the-Mathenge/
b5d5e195c3cdb72bc5666af041333fcf72069f8d#references > Accessed 18th July 2021
76 James Anyanzwa, ‘Questions over Kenya’s readiness for one financial sector regulator,’(Financial Standard, 12th
June 2012)< https://www.standardmedia.co.ke/business/financial-standard/article/2000059662/questions-over-kenyas-
readiness-for-one-financial-sector-regulator> Accessed 18th July 2021
77 Richard K. Abrahams and Michael W. Taylor, Issues in the Unification of Financial Sector Supervision,
(International Monetary Fund Working Paper 2000) page 10
78 Department for International Development, A Comprehensive Financial Sector Regulatory Framework Study for
Ghana, (Sem International Associates Limited August 2018) page 23.
12 | Page
 3. Unification of regulatory framework will mitigate regulatory arbitrage. Regulatory arbitrage
happens when there are a number of regulators with different policies and laws. Many
corporate entities opt to utilize the laws that are more favorable to them in order to
circumvent less favorable regulations. A consolidated regulator brings about unified
standards that can be applied to all sub sectors.79
4. A unified regulatory framework in the financial sector with clearly outlined mandates will
promote the strengthening of accountability by avoiding blame games among the different
regulators. This will mean that a unified financial regulator will be responsible and
accountable for supervising all the financial service providers and products in the financial
industry.80
5. Unification of the regulatory framework will result in economies of scale by avoiding
unnecessary overlaps across different regulators. Doing away with overlaps will result in
having a uniform reporting channel and single central support system dealing with finance,
communication and human resource under one premise thus bringing about economies of
scale.81

3.2 Arguments Against a Unified Regulatory Framework

Arguments against a unified regulatory framework are as follows:
1. A unified regulatory framework will result in unclear objectives of the regulator since
merging different financial sectors have independent and distinct goals.
2. A unified regulatory framework will result in diseconomies of scale which will drag other
financial sectors, since Kenya’s financial sectors are at different stages of development and
the financial markets small.82 The uptake of bancassurance for instance is very low in Kenya
due to lack of trust in insurance companies.83 Merging the insurance sector with the banking
sector which is far ahead with mergers to boost liquidity would lead to it being derailed.
3. Unification of the regulatory framework will require new laws to be created. Therefore,
issues which had been previously settled from long business practices such as the scope of a
financial sector may have to be reopened and debated.84
4. A unified regulatory framework will result in loss of job positions in the various financial
sectors. It will lead to loss of powerful minds in the sectors while others may be offered with

79 ibid.
80 Briault CB, The Rationale for a Single National Financial Services Regulator (Financial Services Authority 1999)
p22.
81 ibid.
82 Jacob K. Gakeri, Financial Services Regulatory Modernization in East Africa: The Search for a new paradigm for
Kenya [November 2011] 1(16) International Journal of Humanities and Social Science at page P 169.
83 Association of Kenya Insurers, Bancassurance In Kenya: Market Assessment Study (2017) at Page 26
84 Richard K. Abrahams and Michael W. Taylor, Issues in the Unification of Financial Sector Supervision,
(International Monetary Fund Working Paper 2000) page 10
13 | Page
 lesser positions that will not match their qualification. A good number of them will opt to
resign due to their position being termed redundant.85
5. Unified regulatory framework will result in change of management which will lead to
cultural conflict because unification consists of merging regulators from different sectors. 86
Also, it will be proving difficult since some sectors such as the pension sector are still
struggling with their internal management system and service delivery.87

3.3 Conclusion
Imposing a unified regulatory framework in our country will burden our straining economy as its
demerits far outweigh the merits of having a unified one.88 A solution has to be found between the
current regulatory framework and the coveted unified one. The most recommended way would be
to polish the existing system by making it less duplicative, more well-organized and responsive to
market forces. 89

4.1 COMPARATIVE ANALYSIS OF DIFFERENT JURISDICTION

4.2 Introduction
This part will examine the financial regulation systems of Zambia and the United Kingdom. The
first part of the paper will discuss the United Kingdom's financial regulation history, their financial
system, how their current system works, and the reasons for the adoption of their current financial
system. The second part of this paper will give the regional outlook of how the Zambian financial
systems work in comparison to the Kenyan system.

4.3 UNITED KINGDOM (UK)

The global financial crisis in 200890 exposed the financial regulation system of the UK, drawing
loopholes in its regulatory system. This saw the country suffer a major downturn which led to a
decline in the UK’s Gross Domestic Product (GDP) that had never been witnessed and was

85 Richard K. Abrahams and Michael W. Taylor, Issues in the Unification of Financial Sector Supervision,
(International Monetary Fund Working Paper 2000) page 10
86 Kenneth Kaoma Mwenda, Legal Aspects of Financial Services Regulation and The Concept of a Unified Regulator,
(Law, Justice, And Development Series 2006) at Page 43
87 Deloitte, The Story Behind Numbers, (Kenya Economic Outlook 2016) at page 10
88 Jacob K. Gakeri, Financial Services Regulatory Modernization in East Africa: The Search for a new paradigm for
Kenya' [November 2011] 1(16) International Journal of Humanities and Social Science at page 164.
89 Jacob K. Gakeri, Financial Services Regulatory Modernization in East Africa: The Search for a new paradigm for
Kenya' [November 2011] 1(16) International Journal of Humanities and Social Science at page 164 page 172.
90 Reserve bank of Australia, “The global financial crisis” https://www.rba.gov.au/education/resources/explainers/the-
global-financial-crisis.html> accessed 20 July 2021.
14 | Page
described to be only second to the great depression of the 1930s. This led to the introduction of
proposals on methods to adopt since it was clear that the regulations at the time were inadequate.
The then regulations were of a tripartite structure, 91 informed by the single unified regulator system
where the Bank of England was the sole regulator responsible for the financial services in the UK.

The single unified system of regulation was blamed for the inability to handle the financial crisis;
this was attributed to the idea of having a single regulator bearing the burden of dealing with all
types of financial service providers without clearly rolling out definite responsibilities and powers. 92
The House of Commons Treasury Committee, noted in their findings that it was an overall
assumption that there was no clear description of roles played by the regulatory system which did
not specify a definite leadership structure.

The Committee, however, discouraged the disbandment of the regulatory structure as a whole but
proposed that the system should have more powers with a structured leadership 93 which will be key
in utilizing communication channels to avert a breakdown in a future crisis.

4.3.1 Legal framework

As a result of the proposals for structured leadership, the Financial Services Act 94was enacted in
2012 by the government and was legislation that amended the Financial Services and Markets Act
2000 which brought in new regulators. These regulators have been classified according to the duties
required of them by the Act. One of them is the Financial Policy Committee 95 which is contained
within the bank of England and the others are the Financial Conduct Authority 96 and the Prudential
Regulation Authority.97 These regulators replaced the Financial Services Authority which was the
sole regulator in the previous single unified regulator model dealing with all the aspects of the
financial system. However, this has changed over time since the two new regulators were formed
each with a specific role in regulation, therefore, satisfying the need to have clear cut
responsibilities.

91 Financial Regulation: a preliminary consideration of the Government's proposals<

https://publications.parliament.uk/pa/cm201011/cmselect/cmtreasy/430/43004.html> accessed 20 July 2021.
92 HM Treasury, A new approach to financial regulation: judgment, focus and stability, Presented to Parliament by
Command of Her Majesty July 2010 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/81389/consult_financial_regulation_condoc.pdf accessed 20 July 2021.
93 Fifth Report of Session 2007-8, The run on the rock, HC 56-I, para 284
94 The Act is available at www.legislation.gov.uk/ukpga/2012/21/contents/enacted
95 Financial Services Act 2012, Part 1 amendments to the Financial Services and Markets Act 2000 (FSM Act), s 9D.
(United Kingdom).
96 Financial Services Act 2012 (FS Act), Part 2 amendments to the Financial Services and Markets Act 2000 (FSM
Act), s 1(United Kingdom).
97 Financial Services Act 2012 (FS Act), Part 2 amendments to the Financial Services and Markets Act 2000 (FSM
Act), s 2(United Kingdom).
15 | Page
 4.3.2 Financial policy committee
The Act places this regulator as a subsidiary of the bank of England and is headed by the Governor
of the bank. It is responsible for macro-prudential regulation which means that it deals with the
external factors relating to the financial system. Its functions as outlined by the Act include the
monitoring and identification of systemic risks, give directions and recommendation to other
regulators to apply macro-prudential measures. This is to ensure the stability of the financial
systems. In monitoring the financial systems, the committee also does stress tests 98 which involve
the inducement of scenarios that may cause a collapse of banks. This is to make sure that banks can
deal with a crisis. Banks that may not be able to withstand such kinds of tests may be given
ultimatums in the forms of a period of time to enact measures that will strengthen their capital
position.
4.3.3 Financial conduct authority
The Authority is run by the treasury of England and deals with the interests of consumers and the
supervision of financial firms and markets. This responsibility is highlighted in the Act through the
set-out objectives of the regulator which are strategic and operational objectives. The strategic
objective is to ensure that the financial market runs well, thus broadening the scope of the regulator
stretching its reach in the financial market allowing its supervisory powers over various financial
service providers.

The operational objectives include consumer protection, the integrity of the market, and
competition. These objectives allow the regulator to work both in the interests of the firms involved
in the market and the consumers, the financial conduct authority makes sure that all the firms
operate legally and is empowered by the Act to deal with a financial crime like market rigging. This
way no firm will have an advantage over the other in terms of having a standard set of rules. It is in
this way that competition among firms is achieved, therefore, the consumers can get better rates in
the financial market.

4.3.4 Prudential regulation authority

The Prudential Regulation Authority is also housed within the Bank of England. It has been argued
that having the regulator work in the precincts of the Bank was to ‘maximize the synergies of
having a monetary policy, macroprudential policy and macroprudential policy under the aegis of
one institution’.99 The regulator is tasked with the supervision and maintenance of the stability of
banks in terms of their conduct and management, this is by ensuring that the banks operate within
the industry standards set up by the regulator. The regulator also keeps an eye on how the banks
98 Stress testing: banks and building societies (bankofengland.co.uk) https://www.bankofengland.co.uk/stress-testing<
accessed 20 July 21, 2021
99 HM Treasury (2015) Bank of England Bill: technical consultation, 3.
16 | Page
manage risks by making sure that they do not take too much risk which may end up compromising
the stability of the banks.

The Financial Services Act requires the financial conduct authority and the Prudential Regulation
Authority to work together in performing their duties in a symbiotic manner to the extent to which
their functions relate. This involves consultation before developing proposals and the adequate
collection of information from each other. The Act also restricts the cooperation of the two
regulators to matters of common regulatory interest. 100 A memorandum of understanding also
provided by the Act is required to specify ways in which the regulators are to comply with the
provisions of coordination, thus reiterating the need for cooperation in achieving successful
results.101

4.4 Conclusion
The regulatory approach by the UK is seen to have shifted from the integrated model which
involves a single unified regulator to the twin peaks approach which involves the separation of the
prudential issue and market misconduct, this is depicted by the formation of the Prudential
Regulation Authority which deals with prudential regulation while the financial conduct authority
deals with financial misconduct, this sets up the institutions with clear cut responsibilities.

From the findings, it is clear that the global financial crisis rattled the UK financial sector and was
the main reason that led to the changes in the regulatory framework. One of the problems identified
from the lessons learned from the crisis was that the previous legislation only focused on the
internal affairs of the financial sector; this problem has however been addressed in the current
framework by the formation of the Financial Policy Committee which exclusively deals with
monitoring external factors affecting the financial system.

By separating the regulators, the UK has been able to accord adequate attention to all regulatory
functions through the definitive allocation of duties and responsibilities which ensures that all firms
providing financial services across the board are kept on toes in terms of working within the legal
realms, this, in turn, achieves the aspect of consumer protection since the consumers are assured of
standard quality services.

The memorandum of understanding stipulated by statute requires frequent communication between

the regulators on matters of interest ensuring that there is a flow of communication and a clear path

100 Financial Services Act 2012 (FS Act), Part 2 amendments to the Financial Services and Markets Act 2000 (FSM
Act), s 3D (United Kingdom).
101 Financial Services Act 2012 (FS Act), Part 2 amendments to the Financial Services and Markets Act 2000 (FSM
Act), s 3E (United Kingdom).
17 | Page
of the chain of policies. This addresses the need to have consistent regulation which will be
effective as a result of the diverse consultation among the regulators.

The Financial Stability Board monitors the global financial system and gives recommendations
based on analysis.102 It has recognized these efforts by noting the progress of financial regulation
and has commended the UK government for overseeing a transition of major changes in the
regulatory framework. The Board identified the changes to include adopting new international
regulatory reforms and responding to broader post-crisis market developments. The Board attributes
these changes to significant reforms that have introduced more intrusive supervision which is key in
regulation.103

The UK can be said to be fairly successful and is better placed to handle financial pressure than
before. This is due to the reforms made to the financial services regulations. The twin peaks model
of regulation has so far worked for the United Kingdom as it has proven to address some of the
major challenges faced by the country under its previous system which was a single unified
regulator.

4.5 ZAMBIA
From the early years of 1990, Zambia is seen to amend their then financial services legislation that
brought about the introduction of new domestic banks coming into the market and the entry of
foreign banks in the finance industry. This however did not attract the usage of citizens to utilize
and own the various financial products featured in the finance market. In the year of 2005, only 8%
percent of the general population had bank accounts and only 5000 people had acquired 90% of
loans from deposit-taking institutions. This is also attributed to members of the public claiming that
the financial products were extremely expensive as their statistical annual average interest rate was
at a whopping 48 percent.104 This was also influenced by the inflation rate of 20% percent that led
people to shy away from acquiring the financial products.105

Zambia being an African country can be used as a benchmark in establishing the possibility of the
enactment and implementation of a working twin system. 106Zambia has adopted a silos matrix

102 “About the FSB” (Fsb.orgDecember 2018) https://www.fsb.org/about/ accessed July 24, 2021
103 Peer Review of the United Kingdom, 2013:
http://www.financialstabilityboard.org/wp-content/uploads/r_130910.pdf. Accessed 19 July 2021.
104 Republic of Zambia, ‘Diagnostic Review of Consumer Protection and Financial Literacy’ (2012) World Bank
Finance Inclusion Practice, Micro and SME Finance; Key Findings and Recommendations Volume I, 10 <
https://documents1.worldbank.org/curated/fr/189281483674576175/pdf/111725-WP-P123485-PUBLIC-v1-
ASBTRACT-SENT-ZambiaCPFLVolI.pdf> accessed 19 July 2021.
105 Jose L Martinez, ‘Access to Financial Services in Zambia’ (2006) World Bank Policy Research Working Paper
4061, 4 < https://openknowledge.worldbank.org/handle/10986/8993> accessed 19 July 2021.
106 Kenneth Mwenda, ‘The Regulatory and Institutional Framework for Unified Financial Services Supervision in the
United Kingdom and Zambia’ (2005) Vol 14 Michigan State Journal of International Law 348
18 | Page
model of a unified financial regulation which means it is partially unified. Hence, it seems to be
operating at a unique system as it is divided under a separate statutory and institutional framework.

This means that it has focused regulation under different departments which do not cross over to the
other financial service provider’s mandate.107 An example is where regulation and supervision over
the insurance finance market would be handled by one organizational unit, while the other focuses
separately on investment or pension funds supervision and regulation.108
The distinction to that of an established fully unified financial regulator is that regulation is under
functional lines, to mean that both the structural and institutional framework has enacted regulatory
agencies that overlook activities of all financial products and service providers without separating
them as to the type of business product, activity or different types of institutional regulation
involved in these financial products or services.109

In the years of 1990-1994, Zambia introduced liberations in the banking system as most existing
banks were owned by the government apart from a homogenized commercial bank. This then
followed the introduction of Small Medium Enterprises like micro-finance institutions that enabled
the low-income earners to access services provided by non-banking financial providers. This
extended into the rural interior but did not achieve a high capacity of loan borrowing since at that
time the government did not allow microfinance institutions to take deposits from their customers.
Similarly, affluent public servants, middle-income earners, could get access loans or made deposits
to foreign banks.110

4.5.1 The nature of Zambia’s regulatory system

Having stated that Zambia runs under a partially unified financial system, including the Central
Bank of Zambia (interchangeably referred to as BoZ) that establishes departments to supervise both
banking and non-banking finance institutions. The introduction of the very recent institutional
regulator, the Pension and Insurance Authority (PIA) is mandated to supervise and monitor both
pension funds and investment companies established that are notably not recognized as non-banking
institutions.111
https://home.heinonline.org/K_K_Mwenda_The_regulatory_and_institutional_framework_for_unified_financial_servic
es_supervision_in_the_United_Kingdom_and_Zambia_Michigan_State_University_Journal_of_International_Law_Vol
_14_No_1_2005 accessed 20 July 2021.
107 Kenneth K Mwenda, Legal Aspects of Financial Service Regulation and the concept of a Unified Regulator: Law,
Justice and Development Series (World Bank series 35919, 2006) 38.
108 Kenneth K Mwenda, Legal Aspects of Financial Service Regulation and the concept of a Unified Regulator: Law,
Justice and Development Series (World Bank series 35919, 2006) 37.
109 Kenneth K Mwenda, Legal Aspects of Financial Service Regulation and the concept of a Unified Regulator: Law,
Justice and Development Series (World Bank series 35919, 2006) 37.
110 Jose L Martinez, ‘Access to Financial Services in Zambia’ (2006) World Bank Policy Research Working Paper
4061, 5 < https://openknowledge.worldbank.org/handle/10986/8993> accessed 20 July 2021
111 Kenneth K Mwenda, Legal Aspects of Financial Service Regulation and the concept of a Unified Regulator: Law,
Justice and Development Series (World Bank series 35919, 2006) 46.
19 | Page
 4.5.2 Bank of Zambia
This is ascribed by the Central Bank of Zambia that has been established under section 3 of Cap 360
the Bank of Zambia Act of the Amended Act of 1998.112 Its supervisory functions have been
mentioned under section 4 of the 1996 Bank of Zambia Act, where its main function includes
formulating and implementing policies governing both supervisory functions and monetary status.
This ensures maintenance of prices and financial stability of the finance system which upholds the
development of a balanced macro-economic financial environment.113 Other functions include –
(a) Licensing, supervision, and regulation of banks and financial institution activities with aim
of promoting the efficient safe, and sound operation of the financial system;
(b) Promoting efficient mechanisms of payment;
(c) Regulating and issuing coins and notes used for legal tender as well as on all matters to the
Republic’s currency;
(d) Supporting the exchange system and ensuring its operations are efficient;
(e) Advising the Government on all matters relating to economic and monetary management.114

4.5.3 Banking and finance services Act

Similarly, the enactment of the Banking and Finance Services Act 1994, which was amended in
2017 and revised in 2020, is the main legal framework that amplifies the regulatory framework of
the Bank of Zambia where all banks, financial institutions, and other financial businesses are
statutory regulated by the Act.115 This Act is the main statutory regulator adopted to regulate the
conduct of banking and finance services provided. It has been established to equally safeguard both
investors and customers who procure the said financial products and services from either banks or
financial institutions.116
Companies through application to the Registrar can be licensed to be authorized to carry out
banking businesses.117 However, if a financial service provider becomes insolvent, the BoZ has the
power to investigate companies registered under the Companies Act, and it can revoke its issued
license and forward it to the supervisory authority to overlook its liquidation or dissolution
procedure as a whole. 118
Additionally if they perform unsafe or unsound practices of business,
refuse to be inspected or fail to follow an order from the BoZ then supervisory action may be taken.

112 Bank of Zambia Act 1996, s 3.

113 Bank of Zambia Act 1996, s 4(1).
114 Bank of Zambia Act 1996, s 4(2).
115 Banking and Finance Services Act Cap 387, s 3(Zambia).
116 Banking and Finance Services Act Cap 387, (Zambia).
117 Banking and Finance Services Act Cap 387, s 4(Zambia).
118 Banking and Finance Services Act Cap 387, s 10(1) (Zambia).
20 | Page
119
This supervisory action entails restricting, revoking, taking possession or suspending the license
granted to the financial service provider for a period of not more than six (6) months.120

It is evident that the overriding objective of this Act is to offer an all-round supervisory and
regulatory framework that governs the financial service providers as to their administration,
organization, supervision, licensing requirements. It also promotes financial accountability as well
as stability in regards to their insolvency, liquidation and dissolution.121

4.5.4 Pension and insurance authority

The Pension Scheme Regulation Act which was amended in 2005 established the Pension and
Insurance Authority.122 Before the establishment of the Authority, its organization was under the
Office of the Registrar, a department in the Ministry of Finance and National Planning, which dealt
with the regulation of insurance companies and banks.123

The Pension and Insurance Authority’s mission includes protection of interest of members,
shareholders, insurance policyholders, and sponsors in Occupational Pensions Schemes. It promotes
the development of the Pensions and Insurance industry through effective supervision and
regulation in a combination of both on-site inspections and off-site analysis. 124 This ensures
provision of excellent services.125

The Pension and Insurance Authority has been established to regulate and supervise pension
schemes126 as well as clearly define the legally stipulated functions and powers of the Authority. 127
Some of the functions include;
i. Registration and deregistration of the various pension schemes established according to the
Act requirements as well as regulation and supervision of established occupational pension
schemes and insurance businesses128;

119 Banking and Finance Services Act Cap 387, s 81(1) (Zambia).
120 Banking and Finance Services Act Cap 387, s 81(2) (Zambia).
121 Bank of Zambia ‘Financial Stability, Regulatory Framework’ https://www.boz.zm/financial-stability-regulatory-
framework.htm accessed 20 July 2021.
122 Pension Scheme Regulation Act No. 27 of 2005, s 4(1)(Zambia)
123 Kenneth Mwenda, ‘The Regulatory and Institutional Framework for Unified Financial Services Supervision in the
United Kingdom and Zambia’ (2005) Vol 14 Michigan State Journal of International Law 358
<K_K_Mwenda_The_regulatory_and_institutional_framework_for_unified_financial_services_supervision_in_the_Uni
ted_Kingdom_and_Zambia_Michigan_State_University_Journal_of_International_Law_Vol_14_No_1_2005_>
accessed 2 September 2014.
124Pension and Insurance Authority https://www.pia.org.zm/ . accessed 21 July 2021
125 Zambia Pension and Insurance Authority, (Annual Report, 2019) <
https://www.fsdzambia.org/wp-content/uploads/2020/08/The-PIA-Annual-Report-2019.pdf> accessed 21 July 2021
126 Pension and Insurance Authority https://www.pia.org.zm/. accessed 21 July 2021
127 Pension Scheme Regulation Act No. 27 of 2005, s 2 (Zambia).
128 The Banking and Financial Services (Capital Adequacy) Regulations, Statutory Instrument 184 of 1995, regulation
4(1).
21 | Page
 ii. Registration and deregistration of Pension scheme managers, administrators, and the
appointed custodians;
iii. Protection of interest of members, shareholders, policyholders, and sponsors of various
occupational pension schemes;
iv. Issuance of licenses to insurers, reinsurers, insurance brokers and agents, loss accessory and
adjusters, claim agents, and insurance risk surveyors; and
v. Administration and management of insurance Fidelity Fund established under Insurance Act
No. 38 of 2021. 129
The Insurance Act No. 38 of 2021 has repealed the 1997 Insurance Act which had been enacted to
work in conjunction with the Pension Scheme Regulation Act. The purpose of the Act, therefore, is
to establish financial regulation, provide supervision and management of insurers, reinsurers, and
intermediaries; supervise and regulate micro insurance commerce, carry out auditing of insurance
brokers and aforementioned service providers, oversee continuance of the Policyholders’ Protection
Committee and the Insurance Fidelity Fund aiming for better service delivery in the insurance
industry. 130
To address the problem that may arise on the overlapping of both institutional functions, the BoZ,
as well as PIA, signed a memorandum of understanding in May 2003 131, where the Securities and
Exchange Commission as established under the Securities Act No. 41 of 2016 132 amended the 1993
Act, is an additional party incorporated in the memorandum. The Securities and Exchange
Commission has the mandate to ensure regulation and licensing of securities exchanges, settlement
and clearing agencies, self-regulatory organizations, and other capital market operators and
overlook the overall development of the capital market.133
The purpose of the memorandum is to therefore provide the limits as to the coordination of
functions between the two institutions and the need to share vital information that then encourages
and leads to the achievement of a sound and stable finance service sector.

4.6 Conclusion
Zambia has adopted numerous legislations that have enabled the smooth and efficient running of the
partially unified supervisory and institutional framework. This can be testified through the various
laws that have been amended over the years that have brought liberation to the financial sector. This

129 Insurance Act No. 38 of 2021, s 180(Zambia).

130 Insurance Act No. 38 of 2021 (Zambia).
131 Kenneth Mwenda, ‘The Regulatory and Institutional Framework for Unified Financial Services Supervision in the
United Kingdom and Zambia’ (2005) Vol 14 Michigan State Journal of International Law 363
https://home.heinonline.org/K_K_Mwenda_The_regulatory_and_institutional_framework_for_unified_financial_servic
es_supervision_in_the_United_Kingdom_and_Zambia_Michigan_State_University_Journal_of_International_Law_Vol
_14_No_1_2005 accessed 20 July 2021.
132 Securities Act No. 41 of 2016, s 7(1).
133 Securities Act No. 41 of 2016, s 9(2).
22 | Page
then protects the consumers who are majorly targeted to enjoy the fruits of such supervision,
licensing, auditing and management carried out by the various institutions that have been adopted to
ensure strict compliance with the stipulated legal and regulatory legislations.

5.0 CONCLUSION AND RECOMMENDATION

The major approaches to financial service sector regulation include the following;

a. The ‘silo’ approach (also called the ‘institutional’ or ‘traditional approach’) – regulatory
agencies are focused on institutions offering the same services e.g. insurance, securities, banking.134

b. Integrated or unified approach – a single regulator is responsible for stability, soundness, and
business conduct.135

c. Some combination of the silo and integrated approach – a variety of models involving
combinations of regulatory functions either inside or outside the central bank.

d. Functional Approach – the focus is on regulating transactions and products, not the legal entity.
Thus, a legal entity that engages in different transactions and products would be subject to multiple
regulators, who together are responsible for the safety, soundness, and business conduct of the
entities.136

e. Twin Peaks Approach – two main regulators focusing on prudential regulation and market
conduct regulation.137

134 Marc Quintyn and Michael W Taylor, “Economic Issues No. 32 - Should Financial Sector Regulators Be
Independent?” (Imf.org2021) https://www.imf.org/external/pubs/ft/issues/issues32/#1 accessed July 24, 2021
135 Marc Quintyn (n 1)
136 Marc Quintyn (n 1)
137 “A comprehensive financial sector regulatory framework study for ghana -final report august 2018 sem
international associates limited expert advisory calldown service, lot c”
https://assets.publishing.service.gov.uk/media/5beafae540f0b667b056110a/062_Final_Report_v2.1.pdf accessed on
July 19, 2021
23 | Page
There has been no evidence to suggest that any of the regulatory model is better than the other in
accordance with the case study done in the United Kingdom, Zambia, Malaysia, Canada, and
Singapore. The models have failed and succeeded in equal measure. 138 According to case studies
from the United Kingdom, Canada, Singapore, Hong Kong, Zambia, and Malaysia, countries have
succeeded and failed across the entire spectrum of architectural specifications.139

The Kenyan regulatory structure continues to face several challenges as discussed in the previous
chapter. While there is an option to continue with the current regulatory approach, we conclude that
there is a need to redesign the existing regulatory framework to address its deficiencies.
Consequently, the paper recommends that Kenya adopts a Twin Peaks version by:
a. Establishing a Council that will comprise of key stakeholders including the Governor of the
CBK and Director-General of the Financial Service Board amongst others. The main
function of the council will be to ensure coordination and solve disputes arising.
b. Limiting the responsibility of the CBK to dealing with the prudential aspects of the
regulation.
c. Creation of an independent Financial Service Board working distinctively from the CBK
that will be responsible for the regulation of the market.

The Twin Peaks recommendation is not contemplated to solve all of the financial sector's regulatory
challenges. However, given the various flaws of the Unified regulatory system, adopting the Twin
Peaks model will be a huge advantage to regulation. First, the two-headed regulatory system
becomes more focused on achieving its respective goals and specific procedures to which the
regulators are bound. Further, is that the twin peaks approach can accommodate constant
modifications and new emerging issues within the monetary markets for example crypto currencies.
Additionally, the model avoids the complications that result from a system that has a powerful
regulator.140

138 Marc Quintyn and Michael W Taylor, “Economic Issues No. 32 - Should Financial Sector Regulators Be
Independent?” (Imf.org2021) https://www.imf.org/external/pubs/ft/issues/issues32/#1 accessed July 24, 2021
139 “a comprehensive financial sector regulatory framework study for ghana -final report august 2018 sem
international associates limited expert advisory calldown service, lot c” ()
https://assets.publishing.service.gov.uk/media/5beafae540f0b667b056110a/062_Final_Report_v2.1.pdf accessed on
July 19, 2021
140Kavlak Law Firm, “Twin Peaks Approach to Financial Regulation” (Mondaq.com September 24, 2019)
<https://www.mondaq.com/turkey/financial-services/848054/twin-peaks-approach-to-financial-regulation> accessed
July 21, 2021.
24 | Page
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11. Kusewa, L. M. "The impact of regulation of the retirement benefits sector on the financial
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13. Lebu Angela Anyango, ‘Financial Services Regulation in Kenya: A Critical Analysis of
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15. Njuguna, Caroline R. "Impact of retirement benefits regulations on the cost efficiency of
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Supervision, (International Monetary Fund Working Paper 2000).
18. Robert Gathaiya, ‘Analysis of Issues Affecting Collapsed Banks in Kenya from Year 2015
to 2016’ (2017) 7 IJMBS.
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Legal Group 2012).

II. INTERNET SOURCES

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062_Final_Report_v2.1.pdf accessed on July 19, 2021
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<https://www.semanticscholar.org/paper/Analytical-Review-of-the-Pension-System-in-
Kenya-Raichura/16276930265e6f7c20c689de19d4b0bd782a9a25> accessed 23 July 2021
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21st July 2021.
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7. HM Treasury, A new approach to financial regulation: judgment, focus and stability,
Presented to Parliament by Command of Her Majesty July 2010
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/81389/consult_financial_regulation_condoc.pdf accessed 20 July 2021
8. James Anyanzwa, ‘Questions over Kenya’s readiness for one financial sector
regulator,’(Financial Standard, 12th June 2012)<

26 | Page
 https://www.standardmedia.co.ke/business/financial-standard/article/2000059662/questions-
over-kenyas-readiness-for-one-financial-sector-regulator> Accessed 18th July 2021
9. Joshua Masinde, ‘Kenya to Launch Derivatives Market’ Daily Nation, Sunday 21 December
2014 http://mobile.nation.co.ke/business/Kenya-to-launch-derivatives-market/-/
1950106/2565038/-/format/xhtml/- /safsuq/-/index.html, accessed 21st July 2021
10. Philip Mulwa and Rafe Mazer, “Is Kenya Ready for a Mobile Virtual Network Operator?”
<http://www.cgap.org/blog/kenya-ready-mvno> accessed 21st July 2021
11. ‘New Perspectives on Regulation | The Tobin Project’
<https://www.tobinproject.org/books-papers/new-perspectives-regulation> accessed 23 July
2021

12. Reserve bank of Australia, “The global financial crisis”

https://www.rba.gov.au/education/resources/explainers/the-global-financial-crisis.html>
accessed 20 July 2021
13. Stress testing: banks and building societies (bankofengland.co.uk)
https://www.bankofengland.co.uk/stress-testing< accessed 20 July 21, 2021

14. Republic of Zambia, ‘Diagnostic Review of Consumer Protection and Financial Literacy’
(2012) World Bank Finance Inclusion Practice, Micro and SME Finance; Key Findings and
Recommendations Volume I, 10 <
https://documents1.worldbank.org/curated/fr/189281483674576175/pdf/111725-WP-
P123485-PUBLIC-v1-ASBTRACT-SENT-ZambiaCPFLVolI.pdf> accessed 19 July 2021.
15. Jose L Martinez, ‘Access to Financial Services in Zambia’ (2006) World Bank Policy
Research Working Paper 4061, 4 <
https://openknowledge.worldbank.org/handle/10986/8993> accessed 19 July 2021
16. Kavlak Law Firm, “Twin Peaks Approach to Financial Regulation” (Mondaq.com
September 24, 2019) <https://www.mondaq.com/turkey/financial-services/848054/twin-
peaks-approach-to-financial-regulation> accessed July 21, 2021

17. Kenneth Mwenda, ‘The Regulatory and Institutional Framework for Unified Financial
Services Supervision in the United Kingdom and Zambia’ (2005) Vol 14 Michigan State
Journal of International Law
https://home.heinonline.org/K_K_Mwenda_The_regulatory_and_institutional_framework_f
or_unified_financial_services_supervision_in_the_United_Kingdom_and_Zambia_Michiga
n_State_University_Journal_of_International_Law_Vol_14_No_1_2005 accessed 20 July
2021

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18. Marc Quintyn and Michael W Taylor, “Economic Issues No. 32 - Should Financial Sector
Regulators Be Independent?” (Imf.org2021)
https://www.imf.org/external/pubs/ft/issues/issues32/#1 accessed July 24, 2021
19. Waweru Guandaru Mathenge, Financial regulatory structure reform in Kenya: the
perception of financial intermediaries in Kenya regarding the case for a single financial
regulator,(Semantic Scholar, 2007) < https://www.semanticscholar.org/paper/Financial-
regulatory-structure-reform-in-Kenya%3A-the-Mathenge/
b5d5e195c3cdb72bc5666af041333fcf72069f8d#references > Accessed 18th July 2021
20. Zambia Pension and Insurance Authority, (Annual Report, 2019) <
https://www.fsdzambia.org/wp-content/uploads/2020/08/The-PIA-Annual-Report-
2019.pdf> accessed 21 July 2021

28 | Page
 MINUTES
MEETING 1

1ST ATP 108 MINUTES OF FIRM 12 CLASS A HELD ON FRIDAY 16 TH JULY 2021 VIA
MICROSOFT TEAMS AT 4:30PM

Members Present
User
Full Name Action Timestamp
Nyakweba Wendy 16/07/2021,
20210235 Joined 16:26:08
Nyakweba Wendy 16/07/2021,
20210235 Left 16:53:02
Nyakweba Wendy 16/07/2021,
20210235 Joined 16:57:09
Murunga Verah Joined 16/07/2021,
20211638 before 16:26:08
Mitei Kipkorir Joined 16/07/2021,
20210294 before 16:26:08
Joined 16/07/2021,
Caren Unity 20211344 before 16:26:08
Kipkemboi Victor Joined 16/07/2021,
20211523 before 16:26:08
Kipkemboi Victor 16/07/2021,
20211523 Left 17:05:01
Kipkemboi Victor 16/07/2021,
20211523 Joined 17:05:15
Joined 16/07/2021,
Kahiga Lydia 20211082 before 16:26:08
16/07/2021,
Kahiga Lydia 20211082 Left 17:03:16
16/07/2021,
Kahiga Lydia 20211082 Joined 17:03:23
Nyagaka Hesbon Joined 16/07/2021,
20211600 before 16:26:08
Ombewa Trizah Joined 16/07/2021,
20210288 before 16:26:08
Ombewa Trizah 16/07/2021,
20210288 Left 17:21:07
Musingo Lena Joined 16/07/2021,
20211329 before 16:26:08
Wamboi Julius Joined 16/07/2021,
20210584 before 16:26:08
Joined 16/07/2021,
Wango Eric 20211272 before 16:26:08

29 | Page
Members absent with apology
Murunga Verah 20211638 Deferred

Members Absent without apology

None

AGENDA
1. Preliminaries
2. Analysis of the commercial transactions project question
3. Coming up with an outline
4. Subdivision of the work
5. A.O.B
6. Adjournment

MIN 1/07/2021: PRELIMINARIES

The meeting started off with a prayer from Caren Unity. The firm leader Nyakweba Wendy
thanked members for attending the meeting and being punctual despite the technical challenges
of using Microsoft Teams.

MIN 2/07/2021: ANALYSIS OF THE COMMERCIAL TRANSACTIONS PROJECT

QUESTION
This being the first meeting that we were holding as regards the Commercial Transactions
project, there were no previous minutes to be read for confirmation, therefore the meeting began
directly with its agendas.
Julius Wamboi was voted the subject coordinator for commercial transactions and was tasked
to write the minutes of the meeting. We had initially shared the question on the whatsapp group
and the same was projected on the teams platform together with the instructions by Hesbon
Nyagaka.
Ms. Wendy Nyakweba invited opinions from members on how the question should be handled.
The firm members agreed that the question required us to critique the position of a unified
regulatory financial framework of the financial services sector in Kenya. Members agreed to
approach the question by;
i. Discussing and appreciating the existing regulatory framework in Kenya;
ii. Discussing the strengths, weaknesses, benefits and disadvantages of having a unified
regulatory system in Kenya;
iii. Carrying out a comparative study of jurisdictions with a unified financial regulatory
30 | Page
 framework.
iv. Discussing what lessons if any Kenya can learn from jurisdictions with a unified
regulatory framework.
v. Recommend a system that Kenya should adopt in order to cure the inadequacies it
experiences in its regulation of the financial service sector.
The members suggested that Kenya’s financial regulatory framework is weak and hence need to for
us to conduct research in order to determine the best alternative models that Kenya can adopt so as
to avoid the pitfalls it experiences. This was seconded by the rest of the members.
The Members proposed research questions and it was unanimously agreed that our research would
adopt the following research questions:
i. What is the status and nature of the current legal regulatory framework? (Here members
are to discuss whether the current framework has met its purpose, its benefits and
inadequacies)
ii. What is a unified regulatory framework? Is it the way to go? (Give its strengths and
weaknesses)
iii. What is the status and experiences of countries with a unified regulatory system?
iv. What lessons can Kenya learn from jurisdiction with a unified regulatory framework?
v. What is the best alternative system that Kenya can adopt?

MIN 3/07/2021: COMING UP WITH AN OUTLINE

Julius Wamboi together with Wendy Nyakweba were tasked to develop a detailed outline that
would address what each member would research.

The members agreed and adopted the outline as proposed by Julius Wamboi and Wendy
Nyakweba as follows:

1. Julius Wamboi to cover Abstract, Hypothesis and the Research questions

2. Trizah Ombewa & Lena Musingo to cover a brief history of regulation of the financial
service sector in Kenya.
3. Eric Wango, Wendy Nyakweba & Caren Unity were tasked to cover what is the nature of
the current regulatory framework, whether it has achieved its purpose and the challenges.
4. Hesbon Nyagaka & Verah Murunga- were tasked to explain on what is meant by a unified
regulatory framework and to report on whether a unified regulatory framework is the way to
go for Kenya.
5. Lydia Kahiga, Kipkemboi Victor & Mitei Kipkorir were tasked to carry out a
comparative study of at least two jurisdictions and research on what are the other available

31 | Page
 models and what is the best alternative model that Kenya can adopt.
6. It was agreed that the conclusion and recommendations would be done by all the members

MIN 4/07/2021: A.O.B

The Firm Leader thanked the members for making time to attend the meeting during this trial
times and insisted that we give our full support to Julius Wamboi so that he may have an easy
time compiling the work. She also made it clear that those who fail to attend the meetings or
submit their research for the project work will be expunged from the minutes and she will inform
Mr. Peter Keya of such a case. There being no other business, members agreed to hold the next
meeting on Thursday 22nd July 2021.

MIN 5/07/2021: ADJOURNMENT

The meeting ended at 6:48p.m, with a closing prayer from Kipkorir Mitei.

Minutes signed by:

…………………………

NYAKWEBA WENDY - CHAIRPERSON/ FIRM LEADER

…………………………

WAMBOI JULIUS - UNIT SECRETARY

DATE: 16/07/2021

32 | Page
 MEETING 2

2ND ATP 108 MINUTES OF FIRM 12 CLASS A HELD ON THURSDAY 22 ND JULY 2021
VIA MICROSOFT TEAMS AT 5:00PM

Members Present
User
Full Name Action Timestamp
Nyakweba Wendy 22/07/2021,
20210235 Joined 16:50:58
Murunga Verah Joined 22/07/2021,
20211638 before 16:50:58
Murunga Verah 22/07/2021,
20211638 Left 17:24:21
Murunga Verah 22/07/2021,
20211638 Joined 17:56:02
Mitei Kipkorir Joined 22/07/2021,
20210294 before 16:50:58
Mitei Kipkorir 22/07/2021,
20210294 Left 17:47:08
Mitei Kipkorir 22/07/2021,
20210294 Joined 17:49:59
Mitei Kipkorir 22/07/2021,
20210294 Left 18:20:33
Mitei Kipkorir 22/07/2021,
20210294 Joined 18:22:25
Joined 22/07/2021,
Caren Unity 20211344 before 16:50:58
Joined 22/07/2021,
Wango Eric 20211272 before 16:50:58
22/07/2021,
Wango Eric 20211272 Left 17:17:22
22/07/2021,
Wango Eric 20211272 Joined 17:32:48
Kipkemboi Victor Joined 22/07/2021,
20211523 before 16:50:58
Nyagaka Hesbon Joined 22/07/2021,
20211600 before 16:50:58
Joined 22/07/2021,
Kahiga Lydia 20211082 before 16:50:58
Musingo Lena Joined 22/07/2021,
20211329 before 16:50:58
Musingo Lena 22/07/2021,
20211329 Left 17:21:21
Musingo Lena 22/07/2021,
20211329 Joined 17:25:13
Musingo Lena 22/07/2021,
20211329 Left 17:25:27
Musingo Lena 22/07/2021,
20211329 Joined 17:25:50
Musingo Lena Left 22/07/2021,
33 | Page
20211329 17:38:12
Musingo Lena 22/07/2021,
20211329 Joined 17:38:25
Musingo Lena 22/07/2021,
20211329 Left 17:38:29
Musingo Lena 22/07/2021,
20211329 Joined 17:38:44
Musingo Lena 22/07/2021,
20211329 Left 17:39:48
Musingo Lena 22/07/2021,
20211329 Joined 17:41:25
Musingo Lena 22/07/2021,
20211329 Left 18:03:41
Musingo Lena 22/07/2021,
20211329 Joined 18:04:00
Wamboi Julius Joined 22/07/2021,
20210584 before 16:50:58
Wamboi Julius 22/07/2021,
20210584 Left 17:17:24
Wamboi Julius 22/07/2021,
20210584 Joined 17:21:25
Wamboi Julius 22/07/2021,
20210584 Left 17:25:59
Wamboi Julius 22/07/2021,
20210584 Joined 17:27:56
Wamboi Julius 22/07/2021,
20210584 Left 17:29:54
Wamboi Julius 22/07/2021,
20210584 Joined 17:29:58
Wamboi Julius 22/07/2021,
20210584 Left 17:39:23
Wamboi Julius 22/07/2021,
20210584 Joined 17:39:49
Wamboi Julius 22/07/2021,
20210584 Left 18:16:41
Wamboi Julius 22/07/2021,
20210584 Joined 18:22:24
Wamboi Julius 22/07/2021,
20210584 Left 18:22:27
Wamboi Julius 22/07/2021,
20210584 Joined 18:22:30
Wamboi Julius 22/07/2021,
20210584 Left 18:23:10
Wamboi Julius 22/07/2021,
20210584 Joined 18:23:22

34 | Page
Members absent with apology
Murunga Verah 20211638 Deferred
Members Absent without apology
None
AGENDA
1. Preliminaries
2. Confirmation of previous minutes
2. Matters arising from the previous meeting
3. Review of progress on the project work
4. A.O.B
5. Adjournment

MIN 6/07/2021: PRELIMINARIES

The meeting began with a word of prayer from Lydia Kahiga. The Chairperson, Wendy
Nyakweba, welcomed the members and commended them for keeping time.

MIN 7/07/2021: CONFIRMATION OF PREVIOUS MINUTES

The minutes of the previous meeting were read by Hesbon Nyagaka, the firm secretary. They were
confirmed by the members and adopted as part of the records.

MIN 8/07/2021: REVIEW OF PROGRESS ON THE PROJECT WORK

The unit head, Julius Wamboi, led the discussion. He asked each of the members to give the firm
members an update on the work allocated to them.

The members agreed to follow the outline created in the previous meeting.

Trizah Ombewa begun by informing the firm members on what they had covered in the
introductory bit. She provided for the definition of the financial service sector in Kenya. She
provided a brief history of regulation of the financial service sector in Kenya.
Lena Musingo noted that they would rely on various statutes to trace the development of the
financial service sector in Kenya.

On the nature of the current regulatory framework of the financial service sector, Eric Wango and
Wendy Nyakweba stated that the regulatory framework was not unified and was fragmented
between the various sectors such as Insurance, Banking, Sacco’s and the Retirement Benefits
Authority. This was seconded by Caren Unity who indicated that during her research she
discovered the statutes such as the Banking Act, regulated both banks and other financial
institutions.

Hesbon Nyagaka updated the members on her portion on the unified regulatory framework. He
stated that a unified regulatory framework had both advantages and disadvantages results. A unified

35 | Page
regulatory framework results in efficiency gains. The unification will lead to revision of supervisory
network into one, thereby reducing the need to comply with different regulators. This is a score on
efficiency because one will seek clearance for a particular business under one roof.
On the portion on comparative study, Lydia Kahiga stated that she had identified Zambia as one of
the jurisdictions with a semi-unified system known as the silo matrix.

Kipkemboi Victor updated the he had identified the United Kingdom which has a developed
system that also incorporates the unified system.

On the alternatives to the unified regulatory system, Mitei Kipkorir and Wamboi Julius took the
firm through the other available systems of regulation such as The ‘silo’ approach (also called the
‘institutional’ or ‘traditional approach’) – regulatory agencies are focused on institutions offering
the same services e.g. insurance, securities, banking. Secondly, Functional Approach – the focus
is on regulating transactions and products, not the legal entity. Thus, a legal entity that engages in
different transactions and products would be subject to multiple regulators, who together are
responsible for the safety, soundness, and business conduct of the entities. Lastly Twin Peaks
Approach – two main regulators focusing on prudential regulation and market conduct regulation.

It was agreed that there has been no evidence to suggest that any of the regulatory model is better
than the other.

The members then agreed to each send their write-ups to the Firm’s Whatsapp group for review by
each member. The write-ups would be discussed in the next meeting.

MIN 9/07/2021: AOB

The Firm Leader thanked the members for making time to attend the meeting. She asked the
members to meet the deadlines set.

36 | Page
MIN 10/07/2021: ADJOURNMENT

The firm leader ended the meeting at 6:30 pm. The members agreed to have the next meeting in
person on 4th of August 2021 at 2:30 pm at the Kenya School of law.

Minutes signed by:

………………………..

NYAKWEBA WENDY

CHAIPERSON/ FIRM LEADER

………………………..

WAMBOI JULIUS

UNIT SECRETARY

DATE: 22/07/2021

37 | Page
 MEETING 3

3RD ATP 108 MINUTES FOR CLASS A FIRM 12 HELD ON WEDNESDAY 4TH
AUGUST 2021 AT THE KENYA SCHOOL OF LAW (GATE ‘A’ AT THE FIELD)
FROM 2.30-5.50PM

Members Present
N STUDENT NAME ADMISSI SIGNATURE
O ON
NUMBER
1. NYAKWEBA WENDY 20210235
MAGOMA
(chairperson)
2. NYAGAKA HESBON MATOKE 20211600
(Secretary)
3. WAMBOI JULIUS 20210584
(Unit Secretary)
4. WANGO ERIC 20211272
5. MUSINGO LENA 20211329
6. KAHIGA LYDIA 20211082
7. OMBEWA TRIZAH ATIENO 20210288
8. UNITY CAREN 20211344
9. KIPKORIR MITEI 20210294

10 KIPKEMBOI VICTOR 20211523

.

Members absent with apology

Murunga Verah 20211638 Deferred

Members Absent without apology

None

AGENDA
1. Preliminaries
2. Confirmation of previous minutes
2. Matters arising from the previous meeting
3. Review of progress on the project work
4. A.O.B
5. Adjournment

38 | Page
39 | Page
MIN 11/08/2021: PRELIMINARIES

The meeting started at 2:35 PM with a prayer from Ombewa Trizah. Nyakweba Wendy
welcomed the members.

MIN 12/08/2021: CONFIRMATION OF PREVIOUS MINUTES

The minutes of the previous meeting were read by Hesbon Nyagaka, the firm secretary. They were
confirmed by the members and adopted as part of the records.

MIN 13/08/2021: REVIEW OF PROGRESS ON THE PROJECT WORK

Wendy Nyakweba read the questions to the members once again. This marked the third reading of
the question by the firm.

The unit head, Julius Wamboi, led the discussion. He asked the members to each give feedback on
the compiled write-ups that had been submitted as per the agreement in the previous meeting. The
members reviewed the write-up and noted the following:

Hesbon Nyagaka noted that the substantial part of the work didn’t have much to be amended and
only a few formatting corrections needed to be made. The members agreed.

Lydia Kahiga pointed out that the document was lacking a declaration of originality and a list of
abbreviations after the cover page. Wamboi Julius took note of this and stated that he would
amend the document to have the same.

Eric Wango suggested that the topics and subtopics be numbered for the work to flow easily.

Lena Musingo further recommended that the numerous subtopics be removed from the
bibliography so as to shorten the document. In addition to this, Mitei Kipkorir reminded Wamboi
Julius to add page numbers to the document. Wamboi Julius took note of their suggestions.

Kipkemboi Victor pointed out that we could use the abbreviation ‘CBK’ instead of writing the
word Central Bank of Kenya often to avoid repetition.

Moreover, Caren Unity noted that the footnotes should all have full stops in accordance with the
OSCOLA method of referencing.

MIN 14/08/2021: AOB

The Firm Leader thanked the members for making time to attend the meeting. She asked the
members to meet the deadlines set.

40 | Page
MIN 15/08/2021: ADJOURNMENT
The firm leader ended the meeting at 6:30 pm. The members agreed to have the next meeting on
16th of August 2021 at 2:30 pm.

Minutes signed by:

………………………..
NYAKWEBA WENDY
CHAIPERSON/ FIRM LEADER

………………………..
WAMBOI JULIUS
UNIT SECRETARY
DATE: 4/08/2021

41 | Page
 MEETING 4
4TH ATP 108 MINUTES OF FIRM 12 CLASS A HELD ON MONDAY 16 TH AUGUST 2021
VIA MICROSOFT TEAMS AT 2:30PM

Members Present
User
Full Name Action Timestamp
Nyakweba Wendy 16/08/2021,
20210235 Joined 14:27:43
Nyakweba Wendy 16/08/2021,
20210235 Left 14:59:33
Nyakweba Wendy 16/08/2021,
20210235 Joined 15:00:27
Nyakweba Wendy 16/08/2021,
20210235 Left 15:04:15
Nyakweba Wendy 16/08/2021,
20210235 Joined 15:06:23
16/08/2021,
Wango Eric 20211272 Joined 14:29:22
16/08/2021,
Wango Eric 20211272 Joined 15:00:30
16/08/2021,
Wango Eric 20211272 Joined 15:07:19
Nyagaka Hesbon 16/08/2021,
20211600 Joined 14:29:32
Nyagaka Hesbon 16/08/2021,
20211600 Joined 15:00:30
Nyagaka Hesbon 16/08/2021,
20211600 Joined 15:07:19
16/08/2021,
Kahiga Lydia 20211082 Joined 14:30:24
16/08/2021,
Kahiga Lydia 20211082 Joined 15:00:30
16/08/2021,
Kahiga Lydia 20211082 Joined 15:07:19
Ombewa Trizah 16/08/2021,
20210288 Joined 14:31:12
Ombewa Trizah 16/08/2021,
20210288 Joined 15:00:30
Ombewa Trizah 16/08/2021,
20210288 Joined 15:07:19
Kipkemboi Victor 16/08/2021,
20211523 Joined 14:31:55
Kipkemboi Victor 16/08/2021,
20211523 Joined 15:00:30
Kipkemboi Victor 16/08/2021,
20211523 Joined 15:07:19
Kipkemboi Victor 16/08/2021,
20211523 Left 15:13:28
Kipkemboi Victor Joined 16/08/2021,
42 | Page
20211523 15:18:38
Musingo Lena 16/08/2021,
20211329 Joined 14:34:15
Musingo Lena 16/08/2021,
20211329 Joined 15:00:30
Musingo Lena 16/08/2021,
20211329 Joined 15:07:19
Musingo Lena 16/08/2021,
20211329 Left 15:24:53
Musingo Lena 16/08/2021,
20211329 Joined 15:25:08
Musingo Lena 16/08/2021,
20211329 Left 15:34:18
Musingo Lena 16/08/2021,
20211329 Joined 15:35:50
Musingo Lena 16/08/2021,
20211329 Left 15:41:25
Wamboi Julius 16/08/2021,
20210584 Joined 14:34:31
Wamboi Julius 16/08/2021,
20210584 Left 14:35:20
Wamboi Julius 16/08/2021,
20210584 Joined 14:35:27
Wamboi Julius 16/08/2021,
20210584 Joined 15:00:30
Wamboi Julius 16/08/2021,
20210584 Joined 15:07:19
Wamboi Julius 16/08/2021,
20210584 Left 15:33:24
Wamboi Julius 16/08/2021,
20210584 Joined 15:33:29
Mitei Kipkorir 16/08/2021,
20210294 Joined 14:34:38
Mitei Kipkorir 16/08/2021,
20210294 Joined 15:00:30
Mitei Kipkorir 16/08/2021,
20210294 Joined 15:07:19
16/08/2021,
Caren Unity 20211344 Joined 14:35:55
16/08/2021,
Caren Unity 20211344 Left 14:46:59
16/08/2021,
Caren Unity 20211344 Joined 14:48:56
16/08/2021,
Caren Unity 20211344 Left 14:53:24
16/08/2021,
Caren Unity 20211344 Joined 15:00:50
16/08/2021,
Caren Unity 20211344 Joined 15:07:19
16/08/2021,
Caren Unity 20211344 Left 16:10:31
16/08/2021,
Caren Unity 20211344 Joined 16:35:36
43 | Page
Members absent with apology
Murunga Verah 20211638 Deferred

Members Absent without apology

None

AGENDA
1. Preliminaries
2. Confirmation of previous minutes
2. Matters arising from the previous meeting
3. Review of progress on the project work
4. A.O.B
5. Adjournment

MIN 16/08/2021: PRELIMINARIES

The meeting started at 2:30 PM with a prayer from Eric Wango. Nyakweba Wendy welcomed the
members.

MIN 17/08/2021 CONFIRMATION OF PREVIOUS MINUTES

Nyagaka Hesbon read the previous minutes dated 04/08/2021 which were confirmed by the
members present.

MIN 18/08/2021 MATTERS ARISING FROM PREVIOUS MEETING

There were no matters arising from the previous minutes, therefore the day’s agenda was adopted
for discussion.

MIN 19/08/2021: REVIEW OF PROGRESS ON THE PROJECT WORK

Lena Musingo & Trizah Ombewa were asked to read their part which was on the introduction and
history. There was a comment from Nyakweba Wendy that the history should be reconciled and be
in a chronological manner. Musingo Lena took notice of this. Trizah Ombewa also took notice
that some of the footnotes had to be properly aligned into OSCOLA referencing system.

44 | Page
On the 2nd part on the existing framework of the Regulatory Financial Service Sector, there was a
comment from Kahiga Lydia that there should be a clear list of the sectors that are primarily
regulated by the Ministry of Finance. Caren Unity took notice.

On the issue of regulation by the Capital Markets Authority, Eric Wango was asked to reduce it
into a paragraph in order to adhere to page limit number.

Mitei Kipkorir noted that there were changes on the NSS Act which the group handling this part
was asked to check.

On weaknesses and strengths of the current regulatory framework, Nyakweba Wendy took the firm
through this part. There was a comment from firm members that the part had to be paraphrased
further to reduce the number of pages. Nyakweba Wendy took note of this.

Hesbon Nyagaka took the firm through chapter 3 of the work. Kipkemboi Victor made comments
that the party needed to add more referencing authorities and paraphrasing. Hesbon Nyagaka took
notice and agreed to work on the same.

Lydia Kahiga and Victor Kipkorir took the firm through the two jurisdictions of Zambia and the
United Kingdom which they had identified as study countries. The members appreciated the
regulatory framework in these countries but noted that none had a pure unified regulatory
framework.

Mitei Kipkorir took the firm through the various approaches of regulation that are available. Julius
Wamboi stated that based on the discussion we should conclude that there is need to redesign the
existing regulatory framework to address its deficiencies. This was seconded by members.

MIN 20/08/2021: AOB

There was no other business arising from the meeting.

MIN 21/08/2021: ADJOURNMENT

The meeting came to a close at 6 pm with a prayer from Wamboi Julius.

The next meeting was set for 21/9/2021 at 2.00 pm.

The Chair, Wendy Nyakweba, thanked the members once again for their attendance and dismissed
them.

45 | Page
Minutes signed by:

……………………..

NYAKWEBA WENDY

CHAIRPERSON/ FIRM LEADER

………………...…...

WAMBOI JULIUS

UNIT SECRETARY

DATE: 16/08/2021

46 | Page
 MEETING 5

5TH ATP 108 MINUTES OF FIRM 12 CLASS A HELD ON TUESDAY 21 ST SEPTEMBER

2021 VIA MICROSOFT TEAMS AT 2:30PM-11:14PM

Members Present

Meeting Summary
Total Number of
Participants 10
Meeting Title null
Meeting Start Time 21/09/2021, 14:30:16
Meeting End Time 21/09/2021, 23:14:57
Meeting Id 36a3f98e-1ccf-4e5c-a341-bbf4f6213e67

Full Name Join Time Leave Time Duration Email (userPrincipalName) Role
Nyakweba Wendy 21/09/2021, 21/09/2021,
20210235 14:30:16 17:45:59 3h 15m [email protected] Organiser
Nyakweba Wendy 21/09/2021, 21/09/2021,
20210235 17:48:18 22:12:00 4h 23m [email protected] Organiser
Nyakweba Wendy 21/09/2021, 21/09/2021,
20210235 22:15:40 23:11:39 55m 59s [email protected] Organiser
Nyakweba Wendy 21/09/2021, 21/09/2021,
20210235 23:14:40 23:14:57 17s [email protected] Organiser
Wamboi Julius 21/09/2021, 21/09/2021,
20210584 14:30:23 16:20:05 1h 49m [email protected] Presenter
Wamboi Julius 21/09/2021, 21/09/2021,
20210584 16:21:11 16:54:13 33m 1s [email protected] Presenter
Wamboi Julius 21/09/2021, 21/09/2021,
20210584 17:04:24 19:06:55 2h 2m [email protected] Presenter
Wamboi Julius 21/09/2021, 21/09/2021,
20210584 19:31:16 21:48:51 2h 17m [email protected] Presenter
Wamboi Julius 21/09/2021, 21/09/2021,
20210584 21:51:05 23:11:08 1h 20m [email protected] Presenter
Wango Eric 21/09/2021, 21/09/2021,
20211272 14:31:05 17:35:03 3h 3m [email protected] Presenter
Wango Eric 21/09/2021, 21/09/2021,
20211272 17:39:57 19:08:38 1h 28m [email protected] Presenter
Wango Eric 21/09/2021, 21/09/2021,
20211272 19:31:56 23:10:39 3h 38m [email protected] Presenter
Kahiga Lydia 21/09/2021, 21/09/2021,
20211082 14:32:53 23:14:37 8h 41m [email protected] Presenter
Caren Unity 21/09/2021, 21/09/2021,
20211344 14:34:06 14:59:15 25m 9s [email protected] Presenter
Caren Unity 21/09/2021, 21/09/2021,
20211344 15:07:06 19:08:16 4h 1m [email protected] Presenter
Caren Unity 21/09/2021, 21/09/2021,
20211344 19:38:05 23:12:38 3h 34m [email protected] Presenter
Ombewa Trizah 21/09/2021, 21/09/2021,
20210288 14:34:50 17:40:51 3h 6m [email protected] Presenter
Ombewa Trizah 21/09/2021, 21/09/2021, 13m 49s [email protected] Presenter

47 | Page
20210288 18:11:44 18:25:34
Ombewa Trizah 21/09/2021, 21/09/2021,
20210288 18:28:22 19:05:14 36m 52s [email protected] Presenter
Ombewa Trizah 21/09/2021, 21/09/2021,
20210288 19:37:15 23:11:29 3h 34m [email protected] Presenter
Musingo Lena 21/09/2021, 21/09/2021,
20211329 14:35:12 14:39:45 4m 33s [email protected] Presenter
Musingo Lena 21/09/2021, 21/09/2021,
20211329 14:44:12 16:30:03 1h 45m [email protected] Presenter
Musingo Lena 21/09/2021, 21/09/2021,
20211329 16:31:04 18:19:45 1h 48m [email protected] Presenter
Musingo Lena 21/09/2021, 21/09/2021,
20211329 18:21:48 19:05:01 43m 12s [email protected] Presenter
Musingo Lena 21/09/2021, 21/09/2021,
20211329 19:34:55 23:06:50 3h 31m [email protected] Presenter
Mitei Kipkorir 21/09/2021, 21/09/2021,
20210294 14:37:41 22:15:04 7h 37m [email protected] Presenter
Mitei Kipkorir 21/09/2021, 21/09/2021,
20210294 22:16:15 23:10:23 54m 7s [email protected] Presenter
Nyagaka Hesbon 21/09/2021, 21/09/2021,
20211600 14:43:18 23:12:28 8h 29m [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 14:43:27 15:32:13 48m 46s [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 15:37:38 17:46:44 2h 9m [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 17:53:13 19:05:47 1h 12m [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 19:45:21 20:26:57 41m 36s [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 20:28:42 21:26:30 57m 48s [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 21:34:53 22:27:36 52m 42s [email protected] Presenter
Kipkemboi Victor 21/09/2021, 21/09/2021,
20211523 22:29:49 23:10:54 41m 4s [email protected] Presenter

Members absent with apology

Murunga Verah 20211638 Deferred

Members Absent without apology

None

AGENDA
1. Preliminaries
2. Confirmation of previous minutes
48 | Page
2. Matters arising from the previous meeting
3. Review of progress on the project work
4. Best Alternative Regulatory System Kenya Can Adopt
5. A.O.B
6. Adjournment
MIN 22/09/2021: PRELIMINARIES

The meeting started off with a prayer from Kipkemboi Victor. The firm leader Nyakweba Wendy
thanked the members for their attendance.

MIN 23/09/2021: CONFIRMATION OF PREVIOUS MINUTES

The Secretary read the minutes that had been recorded during the previous meeting. Eric Wango
seconded the minutes as a true record of the deliberations of the previous minutes. The members
agreed that it was a true and accurate record of the discussions of the previous meeting.

MIN 24/09/2021: MATTERS ARISING FROM THE PREVIOUS MEETING

There were no matters arising from the previous minutes, therefore the day’s agenda was adopted
for discussion.

MIN 25/09/2021: REVIEW OF PROGRESS ON THE PROJECT WORK

The unit leader Julius Wamboi began by thanking the team for their continued diligence in
ensuring that this process becomes a success. Each and every part of the work was read word by
word in order to ensure there’s no repetition, legalese or verbose. The main rule as cited by Trizah
Ombewa was that the work was to follow simple English.

Julius Wamboi highlighted some of the challenges he encountered while compiling the project
work. First, there were areas in which no adequate citations were provided and could risk being
flagged for plagiarism. However, this flaw was not fatal to the whole of the work.

He indicated that he reached out to various member via a phone call in order for them to do extra
research and ensured that the work was wholesomely cited and therefore, minimizing the risk of
plagiarism. He also highlighted the fact that some members were not entirely faithful to the
OSCOLA referencing standard but the members handling those parts had vowed to address this.

However, as far as the rest of the content was concerned, the members were happy with the
substantive aspect of the project work. It was detailed quite well and it followed the outline in the
manner so stipulated.

49 | Page
MIN 26/09/2021: THE BEST ALTERNATIVE REGULATORY FRAMEWORK KENYA
CAN ADOPT
Mitei Kipkorir & Nyagaka Hesbon took the firm through the various regulatory systems.
Members concluded that Kenya should adopt a Twin Peaks version by Establishing a Council that
will comprise of key stakeholders including the Governor of the CBK and Director-General of the
Financial Service Board amongst others. The main function of the council will be to ensure
coordination and solve disputes arising and limiting the responsibility of the CBK to dealing with
the prudential aspects of the regulation.
Members also took notice that the Twin Peaks recommendation is not contemplated to solve all of
the financial sector's regulatory challenges. Members adopted the view that the Twin Peaks model
will be a huge advantage to regulation

MIN 27/09/2021:A.O.B
There being no other business the firm leader thanked everyone for submitting their work on time
and appreciated them for their tremendous efforts.

MIN 28/09/2021 ADJOURNMENT

The meeting came to a close at 11:14 PM with a prayer from Unity Caren.
The members agreed to hold the next meeting on Saturday 16 th October 2021 from 3:00 PM at the
Kenya School of law in person as our last meeting for this unit.
The Chair, Wendy Nyakweba, thanked the members once again for their attendance and dismissed
them.

Minutes signed: DATE: 21/09/2021

……………………….. NYAKWEBA WENDY - CHAIRPERSON/ FIRM LEADER

……………………….. WAMBOI JULIUS– UNIT SECRETARY

50 | Page
 MEETING 6

6TH ATP 108 MINUTES FOR CLASS A FIRM 12 HELD ON SATURDAY 16TH
OCTOBER 2021 AT THE KENYA SCHOOL OF LAW (GATE ‘A’ AT THE FIELD)
FROM 2.30-6.05PM

Members Present
N STUDENT NAME ADMISSI SIGNATURE
O ON
NUMBER
1. NYAKWEBA WENDY 20210235
MAGOMA
(chairperson)
2. NYAGAKA HESBON MATOKE 20211600
(Secretary)
3. WAMBOI JULIUS 20210584
(Unit Secretary)
4. WANGO ERIC 20211272
5. MUSINGO LENA 20211329
6. KAHIGA LYDIA 20211082
7. OMBEWA TRIZAH ATIENO 20210288
8. UNITY CAREN 20211344
9. KIPKORIR MITEI 20210294

10 KIPKEMBOI VICTOR 20211523

.

Members absent with apology

Murunga Verah 20211638 - Deferred

Members Absent without apology

None

AGENDA
1. Preliminaries
2. Confirmation of previous minutes
2. Matters arising from the previous meeting
3. Comments on the project work
4. Costs of printing the project work
51 | Page
5. A.O.B
6. Adjournment

MIN 29/10/2021: PRELIMINARIES

The meeting started off with a prayer from Musingo Lena. The firm leader thanked the members
for their attendance.

MIN 28/10/2021: CONFIRMATION OF PREVIOUS MINUTES

The Secretary read the minutes that had been recorded during the previous meeting. Lydia Kahiga
seconded the minutes as a true record of the deliberations of the previous minutes. The members
agreed that it was a true and accurate record of the discussions of the previous meeting.

MIN 29/10/2021: MATTERS ARISING FROM THE PREVIOUS MEETING

The issue on whether the final document was ready, Julius Wamboi indicated that he had already
shared the final project work in the whatsapp group. He also had a draft printed copy for
proofreading. Nevertheless, he took us through the project work topic by topic and answered any
question which was raised by the members.
MIN 30/10/2021: COMMENTS ON THE PROJECT WORK

Kahiga Lydia made comments on each section of the project work and was satisfied with the work.
She endorsed it for submission

Kipkemboi Victor stated that he had the honor to read through the work and endorsed it for
submission.

Mitei Kipkorir stated that he read through the work as edited by Wendy and confirmed that the
work reflected what was discussed. He approved it for submissions

Musingo Lena stated that she had the benefit of reading the work word by word and endorsed it for
submission.

Nyakweba Wendy stated that she had the benefit of reading through the work, made few
amendments which were received by the secretary and duly noted.

Ombewa Trizah submitted that she passionately read the whole project work and endorsed it for
submission.

Unity Caren stated that she was impressed with project work and hoped for the best.

Nyagaka Hesbon stated that he was impressed with the work and had nothing useful to add or

52 | Page
remove from the work.

Wango Eric stated that he had the chance to read through the work, corrected some
typographical errors and recommended it for submission.

MIN 31/10/2021: COSTS OF PRINTING THE PROJECT WORK

Members agreed that the cost of printing shall be shared equally. Members also agreed to meet on
Sunday 24th October at 3:00pm at Citicon Printers opposite CUEA to print and sign the work
before submission by the firm leader on our behalf.

MIN 32/10/2021: A.O.B

Nyakweba Wendy directed that the project work be converted to PDF. She thanked all members
for their sacrifice towards researching and compiling the project work.

MIN 33/10/2021:ADJOURNMENT

The meeting came to a close at 5:50 PM with a prayer from Nyagaka Hesbon.

Minutes signed: DATE: 16/10/2021

………………………….. NYAKWEBA WENDY - CHAIRPERSON/ FIRM LEADER

…………………………… WAMBOI JULIUS– UNIT SECRETARY

53 | Page
54 | Page