Kenya’s financial sector body on Thursday authorized the code of ethics for business that will certainly aid the financial sector address corruption as well as dishonest techniques.
Kenya Bankers Association (KBA) CEO Habil Olaka informed a media briefly in Nairobi that the code will aid to reinforce customer security and also recover customer trust.
“The signing and subsequent adoption of the code comes at a time when Kenyans are concerned about the health of the banking industry,” Olaka said.
“KBA members have agreed to work together in order to keep each other become accountable,” he said. In the past one year, three banks have been placed under receivership.
Olaka said that the KBA is concerned about the loss of confidence in banking that has been occasioned by the events.
“The events have proved detrimental in relation to public trust placed in the banking profession as many people have questioned whether banks and auditors involved had fulfilled their fiduciary responsibilities,” he said.
The business ethics code is an initiative by the Kenya business community that seeks to promote ethics in business in line with the ten principals of the UN Global Compact.
Olaka said that the banking sector has taken this proactive approach to cultivate a culture of governance and transparency.
“This will help to safeguard the interests of customers, investors and suppliers,” he said.
KBA Chairman Joshua Oigara said that banks play an important role in enabling people to save.
Oigara said that trust is the foundation of banking and so the sector will need to commit to work both collectively and individually to enhance the governance frameworks in order to provide better protection for all stakeholders.
KBA also plans to adopt a self regulatory framework and conduct standards for members in June.