NAIROBI, May 3 (Xinhua) -- Kenya plans to launch guidelines on cyber security for the financial services sector, the banking regulator said on Friday.
Patrick Njoroge, Governor of the Central Bank of Kenya (CBK) told journalists in Nairobi that the guidelines on cyber security for payments services will help to curb emerging threats in the financial sector.
"The regulatory and advisory initiatives are targeted towards safeguarding Kenya's financial sector from cybercrime," Njoroge said during the launch of the 2019 Kenya Bankers Association (KBA) Card, Mobile, and Online Safety Awareness Campaign.
CBK has already launched the Information Communication Technology (ICT) risk management guidelines for commercial banks licensed in Kenya.
The banking sector watchdog also regularly conducts on-site examinations of ICT systems of deposit taking financial institutions to ensure they are protected from cyber attacks.
Njoroge said that cyber threats have increased in the recent past due to increased interconnectedness.
"As a result, a single attack on any given commercial bank could have a devastating effect on the entire financial services system," he added.
Habil Olaka, CEO of KBA said that rapid integration of technology in financial services and payments has over the years continued to improve service delivery and enhance customers' convenience.
"While this is an inspiring development, fraud is among the challenges that threaten progress in the adoption of new technologies. As an industry, we firmly believe that it is through cross-sector collaborations that we can defeat fraud and ensure a sustainable environment for growth," Olaka said.
In view of the evolving nature of fraud, the banking industry believes that an empowered consumer is the most effective frontier in addressing emerging security challenges, such as, cyber-security, data breaches, and social engineering.
"It is for this reason that the banking industry has over the past few years devoted more resources towards containing fraud through staff capacity building and customer education programmes," Olaka said.
Olaka observed that while the financial sector has managed to scale down card-related fraud, identity theft cases in mobile and online platforms have created a new challenge.
He added that the banking industry continues to monitor fraud trends and is working very closely with regulators and financial technology firms to come up with mitigation strategies.
"Through the banking industry's collaborations with the CBK and the Communications Authority of Kenya, we hope to continue securing payment platforms and innovative products in the financial sector," the CEO said.
