Nairobi, Dec. 21 -- The stability of any financial market is dependent on an effective regulatory framework. Effective financial market regulations should foster competition, protect consumers, preserve the stability of financial institutions by cushioning them against systemic risks and promote ethical and responsible business conduct.

The current financial sector regulatory structure in Kenya is characterised by fragmentation and inadequate coordination mechanisms, gaps, overlaps, inconsistency and differences in operational standards.

For instance, new entrants into the financial services market have to scrutinise myriads of different statutes, regulations and circulars to know their obligations.

These include the Banking Act, Digit...