- National Treasury has launched a review of Kenya’s risk based supervision framework for Saccos under the World Bank funded SAFER Project.
- A consultant will update the Risk Based Supervision Manual, identify regulatory gaps, train supervisors and support stronger Sacco oversight.
- Expressions of interest close on August 6, with the five month assignment aimed at strengthening regulation and improving the resilience of the Sacco sector.
The National Treasury has begun a review of Kenya’s risk-based supervision framework for Savings and Credit Co-operative Organisations (Saccos) as part of efforts to strengthen regulation and enhance oversight under a World Bank funded programme.
A Request for Expressions of Interest published under the Supporting Access to Finance and Enterprise Recovery (SAFER) Project said the Treasury is looking to recruit an experienced consultant to review the country’s risk based supervision framework and enhance the monitoring of Saccos.
The assignment is expected to last five months. It will focus on assessing the existing Risk Based Supervision Manual, identifying regulatory gaps and recommending improvements in line with international best practice for financial sector supervision.
The National Treasury said the consultant will review the existing supervisory policy framework before updating the Risk Based Supervision Manual used by regulators to oversee Saccos. The revised manual is expected to strengthen regulatory oversight and improve the sector’s resilience to emerging risks.
In addition to reviewing the framework, the consultant will train technical staff on the updated risk based supervision approach to enhance regulators’ ability to identify, assess and manage risks within Saccos.
The assignment will also involve organising benchmarking and knowledge sharing visits to countries with established best practice in the supervision of Saccos, credit unions and microfinance institutions.
The consultant will also support regulators in carrying out off site analyses and on site inspections to strengthen compliance monitoring and assess the financial health of Saccos.
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The review forms part of the World Bank backed SAFER Project, a five year programme aimed at increasing access to financial services while supporting the recovery and growth of micro, small and medium sized enterprises (MSMEs).
According to the National Treasury, the SAFER Project aims to expand access to finance by promoting innovation, reducing lending risks for MSMEs, and strengthening financial sector institutions through technical assistance.
The Treasury said applicants for the consultancy must demonstrate extensive experience in risk based supervision within the financial services sector. Candidates with expertise in supervising Saccos, credit unions or microfinance institutions will have an added advantage.
Prospective consultants will also be required to show experience training regulatory authorities on risk assessment and supervisory techniques, as well as a strong understanding of Kenya’s financial system and regulatory frameworks across other African countries.
The deadline for submitting expressions of interest is Thursday, August 6 this year. After that, the selected consultant will begin the review aimed at strengthening the regulation and supervision of Kenya’s Sacco sector.
By Bernard Magada
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