dc.description.abstract | This ithesis iseeks ito ilook iat ithe iinterplay ibetween iprinciples iof icorporate igovernance iin igeneral iand
iin iparticular ias ielucidated iby iCentral iBank iof iKenya iin ithe iPrudential iGuidelines i2013, ihow ithey
iare ipracticed iby ithe ibanks ito ithe ibenefit iof ior idetriment iof ithe ikey istakeholders iwho iare iborrower.
In iorder ito iform ia iview, ithe iwriter ihas iused ithe iCredit iInformation iSharing imechanism itouted iby
ithe iCentral iBank iand ithe iKenya iBankers iAssociation ias ia isolution ito ieliminating iinformation
iasymmetry iin ithe ifinancial isector iand ithus ienabling ithe iborrowers ienjoy ibetter iinterest irates iand
ipossibly ilead ito ia ireduced iNPL ibook iin ithe ibanking iindustry.
The iwriter ihas iinterrogated ithe iconduct iof ithe iCentral iBank iof iKenya iin itrying ito iachieve ithe
iabove, ithe iresponse iby ithe ibanks iand iMicro iFinance iinstitutions, ithe ilegislature iand icase ilaw. iThe
iend iresult iis ithat, ithough ithe iCIS imechanism ihas ilofty ivisions, ithe ifinancial isector ineed ito ido imore
iin iorder ito ipass ion ithe ibenefits iof ithe iCIS imechanism ito ithe iborrowers.
The irequired iinterventions imay ibe iregulatory ireview, icloser isupervision iby ithe iregulator, ibetter
iself-regulation ifor iexample ithrough ipeer ireviews iand ia ihost iof iother iurgings ithat imay iinclude
iincentives ito ifinancial iinstitutions ithat icomply ivoluntarily ior ilead iin ithis iarea. iFurther, ithis ithesis
iposits ithat idirect ilegislative iregulation iby ithe iNational iAssembly iis iundesirable iin ia ifully
iliberalised ifinancial isector.
Review iof ithe iexisting iregulations iand iimplementation imay ivery iwell ibe iwhat iis ineeded. iFor
iexample ia ifully ithought iout iAlternative iDispute iResolution i(ADR) iunder ithe iCIS imechanism
iwould igive ihope ito ithe istakeholders. iReview iregulations ito igive imore ifrequent iupdates, iholding
iconsumer idirectors iresponsible ifor ifailure iin ithe iCIS i iprocess iwithin ian iorganisation ioccasioning
iloss ito ithe iof itimelines ifor iexample ito iupdate icustomer idata, iaccuracy iof ithe idata iare isome iof ithe
iinterventions ithat ican ibe itaken ito iensure ibenefit ito ithe iborrowers iand ithe ifinancial isector iat ilarge. i | en_US |