Forging Consensus: KDC Convenes CEOs to Strengthen Regulatory Framework for Development Finance Institutions

Nairobi, Kenya – 3rd June 2026 – Kenya Development Corporation (KDC) today convened a high-level Chief Executive Officers’ Breakfast Meeting, bringing together leaders from Development Finance Institutions (DFIs), financial sector regulators and policymakers to build consensus on a dedicated regulatory framework for DFIs in Kenya.

The meeting was graced by the Director General, Public Investments and Portfolio Management; DG Lawrence Kibet.Discussions underscored the unique and catalytic role DFIs play in Kenya’s economy by providing long-term, patient capital in sectors where commercial financing remains limited, including industrialization, agro-processing, manufacturing and enterprise development. Stakeholders emphasized that as Kenya pursues ambitious goals in industrialization, export growth, climate resilience and regional competitiveness, a stronger development finance ecosystem will be essential.

Participants noted that despite their systemic importance, DFIs currently operate without a dedicated legal and regulatory framework, resulting in fragmented oversight and constraints in attracting institutional capital.

Deliberations focused on building consensus around a fit-for-purpose regulatory framework anchored on four key pillars: strengthened governance and accountability, enhanced financial soundness and prudential standards, improved access to domestic and international institutional capital, and clearer coordination and mandate alignment across the sector.

DG Lawrence Kibet highlighted the importance of a predictable and coherent regulatory environment to reinforce the credibility, sustainability and impact of DFIs in supporting Kenya’s economic transformation agenda.Hon. Sakwa Bunyasi, Chairman Board of Directors, KDC, outlined the policy rationale for the proposed framework drawing on global and regional best practices.

Contributions from the stakeholders, development partners and other policy makers focused on a coordinated supervisory approach and alignment with existing financial regulatory architecture. There was broad agreement among stakeholders on the need for a dedicated regulatory framework to strengthen institutional resilience, enhance transparency and accountability,and position Kenyan DFIs to mobilize greater levels of long-term development finance. KDC Director General Ms. Norah Ratemo emphasized that the discussion goes beyond regulation, noting that it is fundamentally about strengthening institutions and ensuring the long-term sustainability of Kenya’s development finance ecosystem.

“The objective is to build a credible, coordinated and globally competitive development finance system capable of delivering sustained economic and social impact,” she noted.The meeting achieved key outcomes, including a shared understanding of the need for DFI regulation, strengthened consensus on the proposed framework, and structured stakeholder input to inform its refinement. Participants also agreed on next steps, including continued consultations and collaboration to advance the framework.

As Kenya’s premier Development Finance Institution, KDC remains committed to catalysing sustainable economic growth through innovative financing solutions that support industrialization, enterprise development, climate resilience, and inclusive prosperity.About Kenya Development Corporation (KDC)Kenya Development Corporation (KDC) is a Development Finance Institution mandated to provide long-term financing, infrastructure support and business advisory services to projects and enterprises that advance sustainable socio-economic development. It plays a catalytic role in supporting investments across key sectors including manufacturing, post-harvest management, health, tourism, climate change, and the digital and creative economy.