Financial Crime World

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Kenya’s Financial Institutions Face Data Privacy Compliance Deadline

As Kenya’s financial institutions continue to process vast amounts of personal data, they must now comply with the country’s new data protection framework. The Kenyan Data Protection Act 2019 and its accompanying regulations came into effect on February 11, 2022, imposing significant obligations on organizations that collect and handle personal data.

A New Era of Data Protection

The European Union’s General Data Protection Regulations (GDPR) set a global benchmark for data protection when it was enforced in May 2018. Kenya followed suit with its own data protection law, which is modeled after the GDPR. The Office of the Data Protection Commissioner (ODPC), headed by the Data Commissioner, has been tasked with overseeing the implementation and enforcement of the DPA.

Financial Institutions Under Scrutiny

The financial services sector handles vast amounts of personal data, including customer information, employee data, and sensitive personal data. Failure to comply with the new regulations could result in regulatory sanctions, loss of customer trust, and damage to brand reputation.

What Financial Institutions Need to Do

To mitigate data privacy risks, financial institutions must develop comprehensive data protection frameworks that align with the DPA. This includes:

  • Creating inventory lists of processed personal data
  • Conducting Data Protection Impact Assessments (DPIAs)
  • Reviewing contracts with third parties

Prioritizing Data Privacy

Organizations should prioritize data privacy in their boardrooms, with directors taking responsibility for ensuring data privacy is given the attention required. A sound data security program must incorporate stakeholders from across the business to effectively manage associated risks.

Conclusion

Kenya’s financial institutions must now take stock of the new regulatory environment and ensure compliance with the DPA. Failure to do so could result in severe consequences. With the right advisors, organizations can navigate this complex landscape and prioritize data privacy.