Central Bank Introduces Guidelines for Open Banking in Kenya

The Central Bank of Kenya has issued final guidelines for open banking, requiring banks and fintechs to share customer-permissioned data via secure APIs. Effective July 2024, the framework will enable third-party apps to offer personalized financial services—like budgeting tools, SME credit scoring, and cross-platform savings—while ensuring data privacy and cybersecurity. Safaricom, KCB, and Family Bank are among the first to pilot. CBK Governor Kamau Thugge said open banking will deepen financial inclusion, spur innovation, and reduce information asymmetry. Kenya becomes the third African country after Nigeria and South Africa to formalize open banking.