The government has announced new policy reforms and innovative financial models aimed at speeding up financial inclusion in the Northern Kenya region, an area that has long faced limited access to banking and financial services.
The assurance was delivered to the National Assembly’s Departmental Committee on Finance and National Planning by Hezbourne Mackobongo, a Senior Deputy Director at the National Treasury, on behalf of Cabinet Secretary for National Treasury and Economic Planning, John Mbadi.
“Over the years, the Central Bank of Kenya (CBK) has embraced policy reforms and innovative models to scale up financial inclusion. Similarly, the widespread use of mobile phone technology has opened new markets for financial services offered in Kenya,” said Mackobongo.
He was responding to a statement from Eldas MP Adan Keynan, who had raised concerns about the expansion of financial institutions in Northern Kenya. The session was chaired by Kitui Rural MP David Mboni.
Rapid Growth in Mobile Financial Services
Mackobongo told lawmakers that CBK has played a major role in building Kenya’s digital financial services ecosystem through mobile technology. He noted that the journey began in 2007 with person-to-person money transfer platforms and has since evolved into a robust digital financial ecosystem.
“Kenya’s formal financial inclusion has grown drastically from 26.7 percent in 2006 to 84.8 percent in 2024,” he said. “Mobile financial services are the major growth driver, rising from 0 percent to over 82 percent in the same period.”
According to the Treasury, the widespread use of mobile phone financial services has revolutionized access to finance, with the value of monthly transactions rising from Sh3.8 billion in 2007 to Sh753.5 billion in 2024.
Mbadi said these figures show the deep integration of mobile money into everyday economic activity across Kenya, including in the previously underserved Northern region.
Growth in Bank Branches and Remittance Services
Among key indicators of progress, the Cabinet Secretary highlighted an increase in bank branches in the Northern region—from 14 in 2021 to 18 in 2024, marking a 28.6 percent rise.
He added that as of December 31, 2024, there were 26 licensed money remittance providers (MRPs) operating through 34 agents across the country. Of these, five agents (14.7 percent) are based in the Northern Kenya region. Additionally, there are 81 licensed forex bureaus in the country, with one located in the North Eastern region.
Mbadi reaffirmed the government’s commitment to creating a supportive environment for businesses to thrive.
“The Central Bank of Kenya, in collaboration with public and private sector stakeholders, is developing a National Financial Inclusion Strategy (NFIS 2025–2028),” his statement read.
New Strategy to Deepen Inclusion
The upcoming National Financial Inclusion Strategy (NFIS 2025–2028) aims to coordinate financial inclusion efforts across the country by aligning policies, innovations, and programs. The strategy will also create synergies among stakeholders to enhance financial access for all Kenyans.
To further bridge the gap for marginalized groups such as women, youth, and the economically vulnerable, the Treasury announced a nationwide project on financial literacy and economic empowerment as part of the NFIS.
Mackobongo said the initiative will benefit all counties, including those in Northern Kenya, ensuring equitable access to financial opportunities.
He noted that CBK is currently collecting public feedback on the draft NFIS 2025–2028, with the deadline for submissions set for Thursday, October 9, 2025.
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