Core Mandate
FSAD is mandated to carry out the following core functions:
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
The Financial Services Sector is composed of the following sub-sectors, each regulated by a dedicated authority:
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)
Regulatory Framework
The financial sector is governed by the following regulatory institutions:
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.
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.
Legal and Regulatory Frameworks
The Department supports the development and review of legal and regulatory instruments through the following process:
Identification of legal gaps during policy development or implementation.
Request to the relevant regulatory authority to develop draft regulations.
Submission of the draft regulations to the National Treasury.
Stakeholder consultations involving regulators and key industry participants.
Submission of finalised regulations to the Office of the Attorney General by the Cabinet Secretary for approval and publication.
Monitoring implementation and ensuring harmony with existing national legislation.
Planning, Budgeting & Implementation
1. Budget — Medium Term Expenditure Framework (MTEF)
- Ensuring alignment of sector policies with annual budgets and medium-term priorities
- Contributing to the preparation of: Budget Policy Statement (BPS), Budget Review and Outlook Paper (BROP), and Budget Estimates
- Analysing budget proposals submitted by financial sector regulators
2. 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
3. Project Planning and Management
- Design and implementation of financial sector projects and programmes
- Ensuring alignment with sector objectives and national development priorities
- Monitoring project implementation
- 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
Current Laws & Regulations
- Virtual Assets Service Providers (VASP) Act, 2025
- National Payments Act (in development)
- Insurance (Market Conduct) Guidelines
- Insurance (Risk Management and Control) Guidelines
- Insurance (Corporate Governance) Guidelines
- Insurance (Reinsurance Arrangements) Guidelines
- Insurance (Intermediaries) Regulations
- Insurance (Operations of Takaful) Regulations
- Insurance (Products) Regulations
- Insurance (External Auditors and Actuaries) Regulations
- Insurance (Service Providers) Regulations
- Insurance (Bancassurance) Regulations
- Insurance (Amendment) Regulations
Sector Regulators
- Central Bank of Kenya CBK
- Capital Markets Authority CMA
- Insurance Regulatory Authority IRA
- Retirement Benefits Authority RBA
- SACCO Societies Regulatory Authority SASRA
- Financial Reporting Centre FRC
- Unclaimed Financial Assets Authority UFAA
Current Programmes
- Financing Locally-Led Climate Action (FLLoCA) Program
- Rural Kenya Financial Inclusion Facility
- Supporting Access to Finance and Enterprise Recovery (SAFER) Program