Digital technology experts accuse CBK of stifling business innovation
Digital technology experts are now accusing the Central Bank of Kenya-CBK of choking the innovation pipeline through overregulation.
Experts say CBK’s move to over-regulate businesses is locking out many investors and persons willing to do business within the country.
Dr. Jim Mcfie, Director of Academic and Research at Strathmore University, stated that excessive regulation will destroy the business that is operating at this crucial time when technology is undergoing a full transformation while speaking at the annual conference of the Information Systems Audit and Control Association (ISACA) Kenya Chapter in Diani, Mombasa.
“You shouldn’t merely bar people from entering because you’re trying to prevent money laundering and financing criminality. In Kenyan history, this has only seldom occurred. Let’s be open to innovation because all the necessary legislation is in place, he remarked.
The CBK has recently intensified its supervision of the financial sector in order to combat the threat facing the sector. The CBK has most recently focused its regulatory attention on digital lenders.
Dr. Mcfie who was the chief guest at the event said previous studies have shown that there is overregulation in Kenya, and this slows down the growth of the digital industry in the country.
He said instead of the many bottlenecks and laws that do not solve most challenges, Kenya should develop honesty that will lead to further growth of sectors such as digital banking and lending that will in turn birth a vibrant economy in the digital age.
“You do not solve problems by passing laws and increasing legislation. Development can only take place if we work in an environment where honesty starts from top officials,” he explained.
ISACA Kenya’s vice-president, Mercy Omollo, said Kenya is setting up many regulations for digital businesses and operations had both its positives and negatives.
“We understand that there are so many risks involved such as predatory digital lending apps and incidents of hacking. But as information technology professionals, we want to discuss how we can best leverage organizations to enable them to build digital trust,” she said.
She said there were so many policies that have been put in place in the country but the challenge is at the implementation stage where the government and some individual organizations are failing, hence creating risks in cybersecurity and safety.
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