APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA Code of Good Practices in Monetary and Financial Affairs, Principles for Payment Systems, Core Principles for Security and Insurance Supervision and Regulations, Core Principles for Effective Banking Supervision and National Accounting Standards. The expert rating of compliance with each of the various international standards and codes discussed was highlighted in the CSAR. Ostensibly, the degree of compliance varied widely across the international standards and codes with the Principles of Payment System recording the highest of 48%. The CSAR notes that the East African Insurance Supervisors Association (EAISA) was peer-reviewed, as required by the East African Community protocol in 2012 and reported that Kenya’s level of compliance with ICPs was high. 4.2.2 Findings of the Country Review Mission 4.2.2.1 Progress made since 2006 290. Most of the standards and codes relating to economic governance and management have been signed and ratified. 291. Code of Good Practices on Fiscal and Budget Transparency. The CRM found that some progress has been made in the implementation of the Code of Good Practices on Fiscal and Budget Transparency. For instance, in addition to the 2003 Public Audit Act, other laws [Independent Offices (Appointment) Act, 2012 and the Public Finance Management Act, 2012] were passed to strengthen the oversight functions of parliament over budget, and financial management and control. 292. Core Principles for Security and Insurance Supervision and Regulations. The CRM confirmed that the Insurance Core Principles (ICPs) have been revised, and following the joint IMFWorld Bank mission in 2006, the Insurance Act was amended in 2006. There is the Insurance Act 2014 enacted to ensure the operations of insurance institutions are in conformity with International Association of Insurance Supervisors (IAIS) and ICPs. 293. Core Principles for Effective Banking Supervision. In 2007, a joint IMF-World Bank mission undertook a review of the Financial Sector Assessment Programme (FSAP). It was reported that Kenya was compliant with most of the principles. The Central Bank of Kenya has revised its Prudential and Risk Management guidelines to meet the requirements of the revised Basel Core Principles of Effective Banking Supervision. The Microfinance Act 2006 became operational two years later. The Savings and Credit Co-operative Societies (SACCOs) regulatory act has brought deposit-taking SACCOs under its regulatory authority. 294. General data standards. The Kenya authorities, in collaboration with the IMF, have made effort to improve the quality of data. For instance, the System of National Accounts (SNA) has been revised and rebased using the 2008 SNA. The CRM commends this development. However, it is still the case that public finance data are not fully reported in line with the international best practice as epitomized in the IMF Government Financial Statistics (GFS) Manual. The GoK has a programme of action (e.g., the Statistical Master Plan) to address | 137 |