Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/196387 
Year of Publication: 
2017
Series/Report no.: 
GEG Working Paper No. 131
Publisher: 
University of Oxford, Global Economic Governance Programme (GEG), Oxford
Abstract: 
Global banking standards have been adopted unevenly by many developing countries even though these standards were not designed with developing countries in mind. This paper assesses the levels of adoption of Basel standards in Kenya. The country has adopted most of Basel I, many components of Basel II and a few of Basel III. I argue that Kenya is a high adopter of these standards as there were unique circumstances that allowed the alignment of donor, government and private sector from 2003 onwards. Kenya's Basel incorporation is embedded in a government strategy that combines the goal of high financial inclusion and the promotion of Nairobi as an international financial hub. The local private banks that were keen to expand into the region viewed adoption of international standards positively. International banks did not drive adoption but they were early adopters as they had the support of their head offices. The paper shows that while Kenya is a high adopter of standards, enforcement of some components of these standards has been weak but there has been an increased effort at enforcement since 2015.
Document Type: 
Working Paper

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