editorials
Ensure equal access to credit in the country
Friday, May 19, 2023
The data revealing that only four counties account for more than half of all bank branches in Kenya once again revealed the level of concentration of wealth in a few parts of the country. file image | NMG
The data revealing that only four counties account for more than half of all bank branches in Kenya once again revealed the level of concentration of wealth in a few parts of the country.
Data from the Central Bank of Kenya Banking Sector Supervision Annual Report shows that Nairobi, Mombasa, Kiambu and Nakuru had 819 branches in 2022, out of 1,475 outlets, which is 55.5 percent of the total number.
This situation highlights the economic inequality in the country where areas far from commercial centers are not served.
The four provinces together contribute 43.5 percent to the GDP, which boosts their economic position.
While banks decide where to reside based on business decisions, it is in the interest of policy makers to ensure that all Kenyans have equal access to credit to lift the marginalized.
The government must also ask questions about why, after more than a decade of devolution, wealth has not yet been distributed fairly.
Therefore, data must be used when planning interventions in under-banked areas to ensure financial inclusion actions.