Financial & Sectoral
Affairs Department
Mandated to coordinate, develop and oversee policies, legal frameworks and sectoral strategies that promote the growth, stability, efficiency and inclusiveness of Kenya's Financial Services Sector.
Aligned with Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA). The Department serves as the link between the National Treasury and Financial Sector Regulators.
Location: Treasury Building, Nairobi
Who We Are
The Financial and Sectoral Affairs Department (FSAD) within the National Treasury is mandated to coordinate, develop, and oversee policies, legal frameworks, and sectoral strategies that promote the growth, stability, efficiency, and inclusiveness of Kenya's Financial Services Sector.
This mandate is aligned with Kenya Vision 2030, which is anchored on three pillars: Economic, Social, and Political. Under the Economic Pillar, the Financial Services Sector (FSS) is identified as one of the eight priority sectors critical to achieving the targeted 10 percent annual average real GDP growth and supporting sustainable national development.
Vision for the Financial Services Sector
"To create a vibrant and globally competitive financial sector that promotes a high level of savings to finance Kenya's investment needs."
In addition, the Government's Bottom-Up Economic Transformation Agenda (BETA) recognises the Financial Services Sector as a key enabler in achieving national socio-economic development. BETA focuses on five core pillars: Agriculture, MSMEs, Housing and Settlement, Healthcare, and Digital Superhighway and Creative Economy. An efficient and inclusive financial sector is essential in supporting these pillars through access to finance, investment mobilisation, and financial stability.
The Department falls under the Budget, Fiscal and Economic Affairs Directorate and serves as the link between the National Treasury and Financial Sector Regulators and other sectors of the economy.
Department Units
- Financial Affairs Division
- Sectoral Affairs Division
- Climate Finance and Green Economy Unit
- Credit Guarantee Scheme Unit
- Projects and Programs Unit
BETA Pillars Supported
- Agriculture
- Micro, Small and Medium Enterprises (MSMEs)
- Housing and Settlement
- Healthcare
- Digital Superhighway and Creative Economy
Our Mandate
Policy & Regulatory Frameworks
Develop policies, legal and regulatory frameworks that guide the operations of the Financial Services Sector with the objective of promoting stability, efficiency and access to financial services.
Sectoral Policy Research & Collaboration
Formulate, review, analyse and undertake research on sectoral policies in collaboration with Ministries, Departments and Agencies (MDAs) to support national development goals.
International Treaties & Regional Integration
Provide support in international treaties and regional financial integration initiatives.
AML / CTF / CPF Compliance
Facilitate and coordinate compliance with international standards and best practices in combating Money Laundering, Terrorism Financing and Proliferation Financing (ML/TF/PF).
Financial Services Sector
Six sub-sectors comprising Kenya's Financial Services Sector, each with a dedicated regulator
Banking Sub-sector
- Commercial Banks
- Mortgage Finance Institutions
- Microfinance Banks
Capital Markets Sub-sector
- Nairobi Securities Exchange (NSE)
- Stockbrokers
- Investment Banks
- Fund Managers
Insurance Sub-sector
- Insurance Companies
- Insurance Brokers & Agents
- Reinsurers
- Insurance Service Providers
- Policyholders Compensation Fund (PCF)
Retirement Benefits Sub-sector
- Pension Funds / Retirement Benefit Schemes
- Trustees & Administrators
- Fund Managers
- Custodians
SACCO Sub-sector
- Savings and Credit Cooperative Organizations (SACCOs)
Non-Bank Financial Institutions (NBFIs) Sub-sector
- Unclaimed Financial Assets Management
- Anti-Money Laundering (AML)
- Counter-Terrorism Financing (CTF)
- Counter Proliferation Financing (CPF)
Policy Development
The Department plays a central role in financial sector policy development through the following steps
Identification of policy issues or gaps.
Development of a policy concept note.
Conducting stakeholder analysis.
Leading inter-agency consultations during policy development.
Submission of the policy to Cabinet through a Cabinet Memorandum.
Development of a policy implementation strategy with relevant stakeholders.
Monitoring, evaluation, and reporting on policy implementation.
Current Policy Initiatives
Approved; implementation strategy under development.
Approved by Cabinet. VASP Act, 2025 enacted.
At final stages of development.
Cabinet Memorandum signed by the Cabinet Secretary and submitted to the Attorney General.
Development ongoing — first draft completed.
Development ongoing — zero draft.
Multi-agency team constituted.
Development ongoing.
Planning, Budgeting & Programmes
Budget — MTEF
- Ensuring alignment of sector policies with annual budgets and medium-term priorities
- Contributing to the preparation of the Budget Policy Statement (BPS), Budget Review and Outlook Paper (BROP), and Budget Estimates
- Analysing budget proposals submitted by financial sector regulators
Medium-Term Planning
- Development of Financial Services Sector Plans for the Medium-Term Plans (MTPs)
- Monitoring and reporting on implementation of sector targets
- Implementation of the National Financial Inclusion Strategy
Project Planning & Management
- Design and implementation of financial sector projects and programmes
- Ensuring alignment with sector objectives and national development priorities
- Monitoring project implementation and recommending areas for improvement
Current Programmes
Financing Locally-Led Climate Action (FLLoCA) Program
Rural Kenya Financial Inclusion Facility
Supporting Access to Finance and Enterprise Recovery (SAFER) Program
Questions about FSAD?
Reach out about our mandate, publications or sector activities.