NAIROBI, May 9 (Xinhua) -- Kenyan banks are increasingly embracing digital assets to boost financial inclusion and improve service delivery, the Central Bank of Kenya (CBK) said in a survey released Friday.
According to the Banking Sector Innovation Survey 2024, commercial and microfinance banks are leveraging virtual assets (VAs) to expand financial access, facilitate alternative payment and investment channels, accelerate transactions, and lower costs.
According to the CBK, 31 percent of surveyed financial institutions reported engaging in virtual asset-related activities. Key use cases include cross-border payments, fraud detection, and enhanced transaction security.
The survey covered 37 commercial banks, one mortgage finance institution, and 14 microfinance banks.
CBK Governor Kamau Thugge said interest in virtual assets is growing in Kenya, prompting the regulator to craft legal and policy frameworks for Virtual Asset Service Providers (VASPs). These include a finalized National Policy on VAs and VASPs and the Virtual Asset Service Providers Bill, 2025, aimed at maximizing benefits while mitigating risks.
The central bank said the initiative reflects efforts to close regulatory gaps amid the sector's rapid evolution. ■