Kenya Bankers Association
A research trip into the archives that mention pioneer financial institutions reveals that the 1950s was the decade that defined the rise of banks in Kenya. 1950 was not just the start of a new decade, it was also the year that the Kenyan economy started growing at a steady rate.
New Beginnings
In 1951 the Dutch Central Bank, De Nederlandsche Bank, established a branch in Nairobi but maintained its headquarters in Amsterdam. Two years later, the Bank of India opened its doors in Treasury Square in Mombasa. By the end of that year (1953), the Bank of Baroda too had a branch in Mombasa. These three foreign banks strategically targeted upper-, middle- and working-class people. Especially the ones who had decided to settle in the colony. The financial market was ready, and so banks set up where their intended audience was.
In 1958 two banks came into the Kenyan market. The first was The Ottoman Bank which had its roots in Europe. The second was the Commercial Bank of Africa shortly after its establishment in Tanzania.
With close to ten banks in the colony, the banking industry was on the brink of success. While all the institutions had their target market, they were still in the competition. Still, there was a need for a union to ensure standardized management practice in the industry. This, as well as the consideration of employee satisfaction ultimately led to the establishment of the Kenya Bankers Association (KBA) in July of 1962.
Roles of the KBA
The Registrar of Trade Unions registered KBA as an Industry Association. The initial interest was to ensure harmony within the industry. KBA would evolve to promote the development of the banking industry. Additionally, it would work towards steady economic growth by engaging the government and the Central Bank of Kenya which was the regulator for most banks in Kenya. KBA’s operations began by encouraging banks to join the association, thereby making their member banks. The Managing Directors of Chief Executive Officers of these member banks would be their representatives in the union.
This was perhaps one of the developments that gave rise to the changing season in the financial sector.
While it is not clear whether KBA’s vision and mission from 1962 is still the same, what are known are the current. These are: Its vision – ‘To enhance KBA’s position as the voice of banking, and as an innovative leader within the financial services sector in order to reinforce the industry’s ability to be a primary driver of the economy’s development aspirations. Its mission – ‘To be the voice of banks through thought leadership anchored in research and analysis, and to champion industry development through innovation, advocacy, and the promotion of “fair play” among banks.’
