Chief Executive Officers’ Breakfast Meeting convened by Kenya Development Corporation (KDC) in Nairobi
The proposal emerged during a high-level Chief Executive Officers’ Breakfast Meeting convened by the Kenya Development Corporation (KDC) in Nairobi on Wednesday.
The forum brought together leaders from DFIs, financial sector regulators, development partners and government officials to discuss reforms aimed at enhancing the sector’s effectiveness.
Participants noted that although DFIs play a critical role in financing sectors that often struggle to attract commercial funding, including manufacturing, agro-processing, industrialisation and enterprise development, they currently operate without a dedicated regulatory framework.
Stakeholders argued that the absence of a clear legal and supervisory structure has resulted in fragmented oversight and limited the institutions’ ability to attract institutional investors and mobilise long-term capital.
Speaking at the meeting, the Director General of Public Investments and Portfolio Management, DG Lawrence Kibet, said a predictable and coherent regulatory environment is necessary to strengthen the credibility and sustainability of DFIs as Kenya seeks to accelerate economic transformation.
“As Kenya pursues ambitious goals in industrialisation, export growth, climate resilience and regional competitiveness, a stronger development finance ecosystem will be essential,” he said.
Discussions centred on the development of a regulatory framework anchored on four pillars: stronger governance and accountability, enhanced financial soundness and prudential standards, improved access to domestic and international institutional capital, and better coordination among development finance institutions.
KDC Board Chairman Sakwa Bunyasi outlined the policy justification for the proposed framework, drawing lessons from international and regional best practices. Participants also examined how the new framework could align with Kenya’s existing financial regulatory architecture while ensuring effective supervision of the sector.
There was broad consensus among stakeholders that a dedicated regulatory regime would strengthen institutional resilience, improve transparency and accountability, and position Kenyan DFIs to mobilise greater volumes of development finance.
KDC Director General Norah Ratemo said the discussions were not merely about regulation but about building stronger institutions capable of delivering long-term economic and social impact.
“The objective is to build a credible, coordinated and globally competitive development finance system capable of delivering sustained economic and social impact,” she said.
The meeting concluded with agreement on the need for a dedicated DFI regulatory framework and a commitment to continue consultations aimed at refining and advancing the proposal.
The move comes as Kenya seeks to expand financing for strategic sectors and attract greater investment to support industrial growth, climate resilience and inclusive economic development.
