Former Central Bank of Kenya (CBK) Governor Eric Kotut has detailed the significant regulatory reforms implemented to stabilize Kenya's financial sector following the 1988 banking crisis.

• The crisis was primarily caused by non-bank financial institutions with inadequate capital, weak management, and poor governance.
• Key reforms included intensified inspections, the creation of Consolidated Bank of Kenya to absorb struggling lenders, and the enactment of a new Banking Act in 1989.
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