ABSTRACT
The Central bank of Kenya continues to support innovations that will broaden the financial inclusion of the majority of the Kenyans. The financial access survey of 2009 shows that 32% of Kenya's bankable population remains totally out of the orbit of financial services and many more being served by the informal financial system (CBK 2009). The Central bank took extensive reviews of the agent banking. A study by Bankable associate Frontier International Consultancy Firm was commissioned to review practices in Latin America, Asia and Africa on agent. To get more insight, a team from Central Bank (CBK), Ministry of Finance and Kenya Bankers Association (KBA) undertook a study tour on agent banking in Brazil and Colombia (CBK website 2010). After the ground work, Kenya Government through Central Bank of Kenya (CBK) unveiled the agent banking guidelines (GUIDELINES ON AGENT BANKINGCBK/PG/15) to ensure safe, efficient and inclusive financial system as envisaged by vision 2030.(ProfessorNdungu's speech on 14 January 2010) The study is to establish whether the risks associated with agency banking, Policies, procedures governing Agency banking, technological, operations and awareness are hindrances to the implementation. This study will be conducted within the Nairobi Commercial Business District (CBD) and primary data collection method will be used. The study will target 6 banks, 3 banks that have implemented agent banking, Equity, Co-operative bank, and Kenya Commercial Banks and three other banks that have not implemented agent banking. Data will be collected through questionnaire to the banks and secondary data will be what other scholars have written on agent banking. A questionnaire was designed to capture the various variables of the study. The questions were structured as open and closed ended, where open ended allowed free responses and closed were restricted to the alternatives stated, Yes or No.