The proposed digital identification card will help the private sector minimise risks related to fraud by providing a more reliable authentication of clients.
Immigration and Citizen Services Principal Secretary Julius Bitok told representatives of the private sector that the rollout of a digital identity infrastructure will also support business innovation, especially around e-commerce.
He said the implementation of the digital ID regime will be guided by specific measures to safeguard the safety and integrity of private data.
“We have done a data protection impact assessment, which was not done in previous projects. We have submitted a data protection impact assessment report to the Data Commissioner to ensure the process complies with the law,” the PS said.
Representatives of the private sector hailed digital systems as critical enablers of financial inclusion and a safeguard against bank fraud.
"We in the banking sector regard this as a timely necessity that will make it easier for banks to undertake Know-Your-Customer profiles faster and accurately," Dr Sam Nyaoke the Head of Digital Transaction Banking at KCB Group said.
The Federation of Kenya Transport Sector chairman Edwin Mukabana said the matatu industry expects the digital ID to make it harder for blacklisted rogue drivers to continue operating under disguise.
Bitok said Kenya was lagging behind other countries in embracing digital ID and its potential benefits.
"The digital identity systems enable innovative solutions like mobile banking and agent networks, transforming e-commerce processes," he said.
He said the government will ensure the design of the unique personal identifier, digital ID and the third generation ID will facilitate commerce and ease business transactions.
The new card will include superior security and technology features. Unlike the current IDs, it will also support a digital ID mode of identification.
The department is on a public participation exercise ahead of a planned rollout of the document.