Challenges in facing the financial sector

  • The rise of ATM Card Skimming fraud cases has seen local banks experience great losses because they often have to compensate their customers.
  • The high cost of borrowing makes it hard for Kenyans to borrow money from banks. This is quite a challenge because loans are a major source of income to the banks.
  • Theft cases: Banks have lost lots of money stolen from them by their own employees, their security providers, and other external individuals.
  • Local mobile money transfer services like Mpesa and Airtel money have brought in a lot of competition to banks. Since their introduction, many people are finding it easier to save and transfer money through these mobile money transfer services as opposed to banks.