QUESTION TWO

You have decided to invest in the financial services sector in Kenya. You are aware of the ranging debates on interest rate caps, exchange, and inflationary rates and how these affect the sectors performance. You are not yet sure whether to establish a bank, a microfinance or deposit taking Sacco with a few friends.

REQUIRED

1. How would you go about gathering data? Give examples
2. What kind of data would you require and where would you find the data (Explain kind of data and source
3. Assuming you decide to establish a deposit taking Sacco, with the help of examples, discuss in detail the sectors current debates and trends which will help you in your new venture